Germany’s decision is widely seen as a clear affirmation of growing confidence in Viet Nam’s investment climate, governance capacity and long-term development orientation.

Germany’s completion of the ratification process for the EU–Viet Nam Investment Protection Agreement (EVIPA) in 2025 – the year marking the 50th anniversary of bilateral diplomatic relations has become a highly symbolic milestone, reflecting the depth of political and economic trust between the two countries.

The move represents not only an important legal step but also carries profound strategic significance for Viet Nam–Germany relations in particular and Viet Nam–EU ties more broadly.

Amid ongoing volatility in the global economy, Germany’s decision is widely seen as a clear affirmation of growing confidence inViet Nam’s investment climate, governance capacity and long-term development orientation. Beyond its legal implications within the EU–Viet Nam framework, Germany’s ratification of EVIPA is also regarded as a strong policy statement: Viet Nam has emerged as a long-term strategic investment partner of Europe’s largest economy.

EVIPA is among a new generation of investment protection agreements that set high standards for transparency, investor protection, dispute settlement mechanisms and the responsibilities of host states.

Germany’s approval of the agreement – as Europe’s largest economy and one of the EU’s most influential members – indicates that Viet Nam has met the stringent criteria set by European partners for a strategic investment destination.

Observers note that this development reflects Viet Nam’s persistent and consistent reform efforts over many years. From improving the legal framework for investment, enterprises and land management to enhancing transparency, streamlining administrative procedures and safeguarding the legitimate rights of foreign investors, Viet Nam has gradually built the image of an open, stable and predictable economy. These factors have been instrumental in strengthening trust with partners such as Germany.

International economic experts believe Germany’s ratification of EVIPA sends a message that goes beyond trade and investment. Oliver Massmann, General Director of Duane Morris Viet Nam, said it is as strong political signal, demonstrating Germany’s recognition of Viet Nam’s strategic role in Southeast Asia.

According to him, Viet Nam is among the few countries in the region that possess the necessary conditions to become a new hub for manufacturing, technology and supply chains for Europe amid global economic restructuring.

From a business perspective, EVIPA is expected to create a safe legal corridor for long-term German capital flows into Viet Nam. German corporations, known for their cautious investment approach, typically prioritise markets with clear protection frameworks, transparent dispute resolution mechanisms and long-term policy stability. EVIPA meets these requirements, paving the way for large-scale investments in high technology, renewable energy, infrastructure, finance and processing industries.

Analysts also point out that Germany’s ratification of EVIPA during the 50th anniversary of diplomatic ties further enhances its symbolic value. It is not only the outcome of half a century of bilateral cooperation but also an important foundation for a new phase of deeper and more substantive partnership.

For Viet Nam, EVIPA represents both an opportunity and a commitment. While the agreement imposes higher standards in governance, environmental protection, social responsibility and the rule of law, it also serves as a positive catalyst for institutional upgrading, improved growth quality and the attraction of more selective and sustainable investment flows.

As the EU seeks reliable partners in the Asia–Pacific to diversify supply chains and reduce dependence on traditional markets, Viet Nam is increasingly viewed as a strategic choice. Germany’s ratification of EVIPA can be seen as a "vote of confidence" in Viet Nam, affirming the country not only an attractive investment destination but also as trusted long-term partner.

Source:Vietnamnet

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