July 25, 2025

BERLIN – The Government of Germany on July 23 (local time) officially submitted the EU – Việt Nam Investment Protection Agreement (EVIPA) to the German Bundestag for ratification.

This legal document has been jointly advocated by the Vietnamese Government, the German business community, and partners within the frameworks of Việt Nam–EU and Việt Nam–Germany relations.

At its 11th meeting, the German Federal Cabinet approved a draft law concerning the EU’s investment protection agreements with Việt Nam and Singapore. These agreements are intended to enhance economic ties with the dynamic Southeast Asian region and serve as a complement to the EU’s free trade agreements (FTAs) with Singapore (2019) and Việt Nam (2020).

Earlier this month, during her working visit to attend the 2025 Global Summit of Women in Berlin, Vietnamese State Vice President Võ Thị Ánh Xuân held talks with Vice President of the German Bundestag Bodo Ramelow, who announced that the German parliament had initiated the consultation process with relevant stakeholders in preparation for the ratification of the EVIPA, aiming to create new momentum for trade and investment cooperation between the two countries.

Economic ties between Việt Nam and Germany form a key pillar of their strategic partnership. Germany is Việt Nam’s biggest trading partner in Europe, while Việt Nam is Germany’s largest trading partner in Southeast Asia, with two-way trade steadily growing by over 10 per cent annually. The EU–Việt Nam Free Trade Agreement (EVFTA), strongly supported by Germany, has significantly boosted bilateral economic relations, contributing to increasing the export of Vietnamese goods to Germany.

The two countries have complementary economic structures and product strengths. Việt Nam excels in light industry, services, consumer goods, agricultural products, digitalisation, and information technology, while Germany holds advantages in heavy industry, machinery, raw materials, and cutting-edge clean energy technologies.

Việt Nam’s geopolitical position in Asia and the Indo-Pacific region is increasingly rising. Its dynamic economy, young workforce, and strategic location have made the country an attractive destination for business and investment expansion. By the end of 2023, Germany ranked 17th among 146 countries and territories investing in Việt Nam, with 463 projects worth US$2.68 billion. In 2024, German investment continued to increase, with 472 valid projects worth $2.76 billion, reflecting steady growth.

With a policy of diversification and risk reduction when investing in the region, German investors have increasingly prioritised expanding their operations in Việt Nam due to the lower investment costs and the Vietnamese Government’s sustainable development orientations. Renewable energy, green transition and sustainable development, manufacturing, services, logistics, and education are among the key areas of cooperation between the two sides.