Vietnam

Focus Areas and Cooperation Potentials of Vietnam

Vietnam’s economy has seen strong growth and societal change in the last few decades. It now has the status of a middle income country and, with 98 million inhabitants and a young population, will continue to develop dynamically. Germany is Vietnam’s largest trading partner in the EU and is becoming an increasingly important partner for investment. Vietnam is one of Germany’s largest trading partners among the ASEAN countries. Vietnam’s most important exports to Germany are shoes, textiles, agricultural products (e.g. coffee and pepper), seafood, electronics and furniture. The most important imports from Germany are machinery, vehicles and chemical products. The free trade agreement between Vietnam and the EU, which entered into force on 1 August 2020, has led to the further enhancement of bilateral economic relations between Germany and Vietnam. ASEAN is the preferred region for German companies seeking to diversify their business, with Vietnam often being selected as the country of choice within ASEAN. However, Vietnam is also facing enormous challenges such as the decline of natural resources, the destruction of its environment, a skills gap and high energy consumption. In response, the Vietnamese government adopted its ‘Green Growth Strategy’ in 2021, which focuses on sustainable growth, vocational training, climate and energy, and the protection of the environment and forests.  It has set itself the goal to become climate neutral by 2050.