Ho Chi Minh City, December 18th – The German Business Association in Vietnam (GBA) had its most active year yet with 70 new members and corporate partners since 2022; more than 20,000 participants at 70 cultural, social & business-focused events; and countless improvements to GBA operations and communications to support the German community’s continued prosperity and growth in Vietnam.
As one of the first foreign business associations in Vietnam, the GBA has helped German businesses develop their operations, advised business communities on a wide range of topics, and created opportunities for business and social exchange across the country for over 28 years. With a total of 375 members and 15 corporate partners, the GBA is one of the largest foreign business associations in the country.
GBA Monthly Business Meeting in December 2023
Vietnam as a promising destination for German business investment
Support for German business development has grown increasingly needed as more German companies intend to invest in Vietnam. As of today, about 500 German companies have an active presence or ongoing business communications with companies in Vietnam. A survey conducted by the Delegation of the German Industry and Commerce in Vietnam (AHK Vietnam) reported that about 91% of German companies are planning to expand their investment in the country, showing an increase from 2021.
Despite global concerns, the AHK World Business Outlook Fall 2023 survey highlights Vietnam’s increasing appeal for German companies. The survey indicates that 42% of German companies in Vietnam prioritize diversifying production and manufacturing, indicating a strategic focus on varied production capabilities. Sales and marketing (41%), services (35%), and logistics (31%) closely follow, underscoring a comprehensive approach to business development. About 50% of companies surveyed recognize the growth potential of the Vietnamese market as a significant consideration to further investment.
The GBA Co Chairman Torben Minko met the German Chancellor Olaf Scholz during his visit to Vietnam
In the first 11 months of 2023, Germany has further solidified its presence in Vietnam by initiating a total of 28 newly registered Foreign Direct Investment (FDI) projects, representing a total registered value of $342 million and 410.1% year-over-year growth. As of October 2023, there was a total of 459 German FDI projects in Vietnam, representing a total value of $2.5 billion. Commenting on this, GBA Co-Chairmen Mr. Elmar Dutt and Mr. Torben Minko said, “The presence and growth of investments not only reflects the confidence of German companies in the Vietnamese market but also positions Vietnam as a promising destination for those seeking to diversify their interests in Asia. And here at GBA, we are proud to have continued providing key support & resources for German businesses to thrive in Vietnam.”
Among the GBA’s main aspirations are to work for the best possible market environment and operating conditions for German companies in Vietnam; actively encourage and support further German investment in Vietnam; and represent its members’ interests towards local authorities and strive for a high visibility and reputation of the German business community.
A fruitful meeting between the GBA and the authorities of Quang Nam Province and Da Nang City
A year of milestones, improvements, identified solutions to address German business needs
In 2023, the GBA strengthened their operations and communications, improve the number and quality of business-focused events, and worked in close collaboration with the German community in Vietnam to accomplish the following key achievements:
- The German delegation actively participated in numerous high-level meetings with government authorities throughout the year, including with Prime Minister Pham Minh Chinh, the Chairman of Ho Chi Minh City People’s Committee Phan Van Mai, and the Investment and Trade Promotion Centre of Ho Chi Minh City. In return, the GBA received positive feedback and recognition, and have maintained engagement with the government officials on a regular basis. The association also signed a Memorandum of Understanding with the Investment Promotion Agency Da Nang in June to further promote investment initiatives in Central Vietnam.
- The GBA expanded its annual flagship cultural event Oktoberfest to central Vietnam for the very first time, strengthening the cultural and economic bridge between German and Vietnamese communities across the nation to establish deeper cultural connections and understanding. The 2023 GBA Oktoberfests attracted more than 10,500 Oktoberfest participants across 7 evenings in Da Nang, Hanoi and Ho Chi Minh City. The Oktoberfests in Vietnam, which began in 1992, are the longest-running and largest events organized by a Foreign Business Association for more than three decades.
- The GBA Business Challenge reached a total of 300 diverse business concepts after its fourth year, continuing the association’s corporate social responsibility efforts through supporting young entrepreneurs’ ambitions and ultimately boosting Vietnam’s economic development, creating jobs, and connecting German and Vietnamese business values and opportunities.
GBA Corporate Social Responsibility CSR initiative Final pitch of the GBA Business Challenge 2023
Looking ahead to 2024
In 2024, the GBA will continue to be the German business community’s voice and advocate in Vietnam, fostering bilateral socio-economic relations between Vietnam and Germany, and supporting their members to developing and protect their business activities.
GBA Co-Chairmen Mr. Elmar Dutt and Mr. Torben Minko state, “The GBA is committed to working closely with the Vietnamese government to advocate for a favorable and transparent business environment, especially with regards to legal and regulatory frameworks, taxation, labor, and intellectual property rights. Following the implementation of the EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement in 2020, there is also a need to educate German businesses and potential investors on the opportunities and challenges of doing business in Vietnam. We will continue to provide key guidance while promoting the German business culture and values in Vietnam and advocating for social responsibility and sustainability.”
Industries that could see more German investment in 2024 according to the GBA are agriculture and food; digitalization and innovative solutions in manufacturing, logistics, education, and health; and renewable energy, especially in solar and wind power. With Germany’s strong expertise and experience in this field and Vietnam’s high demand for electricity as well as commitment to reduce greenhouse gas emissions, there is significant potential for German investment to rise in the coming year.
Click here>>> for the press release in Vietnamese.
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About the German Business Association in Vietnam
The GBA has been one of the first foreign business associations in Vietnam, starting its activities in 1995. For more than 28 years, the GBA has been the focal point of German business life, culture, and values in Vietnam. It has helped German businesses in developing their operations, has advised on a wide-ranging topic and created opportunities for business and social exchange across Vietnam.
Currently, the GBA has over 370 members and 15 corporate partners, a reflection of the opportunities and dynamics of the Vietnamese market. It is one of the largest foreign business associations in Vietnam and a highly respected counterpart in the local community. In addition, the GBA was one of the founding members of EuroCham Vietnam, a partnership that represents the pan-European activities and interests in Vietnam.
Media Contact
Ms. Anna Tran
GBA – Marketing & Communications Manager
Email: anna@gba-vietnam.org
Phone: (+84) 906 963 190