Vietnam: Long-term business opportunities with Partnering in Business with Germany

Partnering in Business with Germany organised two networking events in Vietnam at the end of February. These events not only celebrated 50 years of diplomatic relations between Vietnam and Germany, but also promoted an intensive exchange on sustainable business practices and ESG (environmental, social and corporate governance) criteria as well as networking between German and Vietnamese companies.

07.03.2025

Vietnam’s “green growth” strategy

Vietnam aims to become climate neutral by 2050 and combine economic growth with ecological responsibility. This can be done by implementing ESG criteria. The free trade agreement between the EU and Vietnam (EVFTA) that entered into force in 2020, supports this transformation and opens up new opportunities for companies. Vietnamese companies can increase their competitiveness by complying with international standards, which is particularly needed due to the growing pressure from investors and partners. The Partnering in Business with Germany programme supports Vietnamese companies in recognising and using these opportunities.

At the events, high-ranking representatives of the Vietnamese Chamber of Commerce and Industry (VCCI), the Federal Ministry for Economic Affairs and Climate Action (BMWK) and the German Embassy in Vietnam discussed the importance of ESG for bilateral business relations with over 70 participants. ESG not only offers German companies competitive advantages, cost reductions and a stronger employer brand, but also introduces challenges such as new reporting obligations, particularly as a result of the Supply Chain Due Diligence Act. Vietnamese companies that can provide transparent ESG documentation are more attractive for German partners.

07.03.2025

Partnering in Business with Germany: the key for sustainable partnerships

The Partnering in Business with Germany programme provides support to Vietnamese companies during their preparation for complying with ESG requirements and helps them to benefit from sustainable business models in the long-term. It promotes the exchange of best practices and also concrete opportunities for cooperation in such areas as renewable energies, circular economy and sustainable methods of production. Companies on both sides can thus better understand the challanges and opportunities of the respective markets. Alexandra Westwood, the Attachée for Economic Affairs and Developemnt Cooperation at the German Embassy in Vietnam, sums it up neatly: “The ESG is not a nice-to-have, it’s a must.”

Panel discussion © GIZ/Thế Quang Đỗ

Peter Bürstedde, Dircetor at Germany Trade and Invest in Vietnam, stresses the increasing importance of the ESG for German-Vietnamese business relations. He says that as there is no universal approach for ESG compliance, we have to tackle challenges that are specific to companies and find customised solutions. A former participant of the programme, Trang Nguyen, sees similar challenges for German and Vietnamese companies. Peter Kompalla, Chief Representative of the Delegation of German Industry and Commerce in Vietnam, also pointed out that combining the strengths of both countries would help to overcome future challenges and that decarbonisation would be the next step in cooperation between Germany and Vietnam.

Manuel Palz presents the programme © GIZ/Thế Quang Đỗ

Manuel Palz, Deputy Head of Division for the Partnering in Business with Germany programme at the BMWK, concluded that the programme acts as a link that enables both sides to exchange their experience and points of view on this matter. He recommends the inclusion of ESG criteria as early as the initiation of partnerships, viewing it as a competitive advantage in the supply chain.

Great potential for future cooperation

Economic relations between Vietnam and Germany have grown continuously. Today, Germany is Vietnam’s biggest trade partner within the EU, and Vietnam’s economy has recorded annual growth of more than 6% in the last few years. Especially sectors like electronic engineering, textiles, futniture and packaging offer numerous opportunities for German companies that focus on sustainable methods of production and ESG.

The two Partnering in Business with Germany events were followed by a reception at the Embassy and two company visits. The first visit was to the CNCTech, company which used the programme to foster its internationalisation and today generates 80% of its turnover abroad, including via cooperation partnerships with Germany. The second company visited was Idocean, close to Ho Chi Minh City, which focuses on sustainability in the drinks industry.

Partnering in Business with Germany shows how both countries can jointly develop sustainable business models and create long-term partnerships in order to face the challenges on the market.