With its young workforce, competitive labour costs, expanding domestic market, and increasingly open investment environment, Vietnam is fast becoming one of the most appealing destinations for German investors in the 2025–2026 period.
A report by the German Chamber of Commerce and Industry in Vietnam, released in September 2025, noted that German capital began to flow into Vietnam in the early 1990s, shortly after the country began its economic reforms. Following Vietnam’s accession to the World Trade Organization (WTO) in 2007 and the revision of the Enterprise and Investment Laws in 2015, German investment saw a significant upsurge. So far, 576 German enterprises have invested in Vietnam with a total registered capital of nearly 3.7 billion USD, generating at least 50,000 jobs nationwide.
While Germany is globally recognised for its strong manufacturing base, nearly half of its projects in Vietnam are concentrated in the service sector, including consultancy, logistics, business process outsourcing, and information technology. Prominent examples include Digi-Texx, employing more than 1,500 people in Ho Chi Minh City, and Bosch, which has around 4,000 employees engaged in engineering and technology.
Meanwhile, German manufacturing operations in Vietnam continue to expand, with 117 active enterprises across various industries. Bosch operates a drive belt production plant in Dong Nai and research centres in both HCM City and Hanoi. In the textile sector, several German suppliers and original equipment manufacturers have established a presence, while the chemical industry mainly caters to domestic clients. Although the automotive industry in Vietnam remains relatively small, notable German investors such as Schaeffler, Bosch, and Dräxlmaier have already made their mark.
HCM City remains the primary hub for German businesses, accounting for about 75% of their sales and service activities. Manufacturing clusters are concentrated in Dong Nai and Tay Ninh, while the Hanoi–Hai Phong corridor in the north continues to attract major names like B. Braun, Messer, and new entrants such as Harting, RRC, and Certoplast. The central region, with its cost advantages and quality living environment, is also drawing increasing attention, with notable projects in Da Nang, Quang Nam, and Gia Lai. Overall, most German factories are situated within a 30–40 km radius around HCM City – Vietnam’s long-established foreign investment hub.
Germany’s appeal to Vietnam lies not only in capital but also in the transfer of technology, management expertise, and vocational training models. German companies typically take a long-term approach, promoting sustainable development, adhering to strict legal and environmental standards, and collaborating with local suppliers to facilitate technology transfer and management skill development.
With the EU–Vietnam Free Trade Agreement (EVFTA) now in effect, Vietnam’s green growth strategy gaining momentum, and global supply chains undergoing realignment, the prospects for German–Vietnamese investment cooperation remain highly promising. Backed by technological strength and long-term commitment, German enterprises are expected to continue supporting Vietnam’s socio-economic development in the years ahead./.
 
Source: en.vietnamplus.vn/vietnam-a-magnet-for-german-investment-post329825.vnp