Investment euphoria: Province relies on digital transformation!

Investment euphoria: Province relies on digital transformation!

On June 16, 2025, provincial leaders reported close cooperation with the Dich Quang Group of China to implement investment promotion measures. These initiatives are in line with central government guidelines and focus on the digital and green economy, innovation and technology. A central aim of these measures is to promote the private sector and its integration into the global value chain, thereby creating links between foreign direct investment (FDI) and the domestic economic sector (DDI).

In this context, proposals for support guidelines are being developed to protect the interests of existing investors. The province is working closely with central ministries to update existing investment mechanisms. The investment promotion measures for 2025 are based on five main contents, which represent a comprehensive strategy to improve the investment climate.

Main content of investment promotion

• Imagebildung und Vorstellung des Investitionsumfelds.
• Unterstützung und Erleichterung von Investitionstätigkeiten.
• Aufbau von Informationssystemen und Datenbanken.
• Stärkung von Schulungen und Coaching.
• Nationale und internationale Zusammenarbeit.

Another important point is the investment in infrastructure and environment in the Ba Thien II Industrial Park. This step is a sign of the region's commitment to supporting sustainable development. In addition, investment promotion delegations are active in various markets, including Japan, Korea, Taiwan and India, in the first five months of 2025. Conferences and seminars to promote the investment environment are also organized.

To improve communication, videos promoting the investment environment were created in five different languages. Regular dialogues with companies and foreign investors are a central element of this strategy. Typical partners in this process include well-known companies such as Samsung Group and MM Mega Market Vietnam.

Economic challenges in Germany

Meanwhile, the economic situation in Germany remains tense. In the 2025 annual economic report, the Federal Ministry for Economic Affairs and Climate Protection (BMWK) highlights that the price and seasonally adjusted gross domestic product (GDP) in the fourth quarter of 2024 is on a par with the 2019 level. The reasons for this are both economic and structural factors that affect Germany's competitiveness.

Current analysis shows that Germany has fallen to 24th place in the 2024 IMD rankings, a drop of seven places since 2020. There have been high net outflows in recent years, suggesting possible deindustrialization and corporate migration. A record outflow of 112 billion euros was recorded in 2022. This is reinforced by a sustained decline in industrial production in the manufacturing sector since May 2018, indicating an impending structural crisis.

While Germany is considered a significant investor, the country has become less attractive as a destination for foreign investment. The below-average inflows in 2021 illustrate this development. This also means that Germany is having increasing difficulties in surviving in the global competitive environment, which could potentially have a negative impact on the economy.

In summary, the overall situation shows that Germany and the provincial leaders in Vietnam have different economic challenges and strategies for dealing with their respective situations, which include both the need to promote investment and to deal with significant economic restructuring.

Vietnam.vn and Economic service report on various aspects of the current economic situation.