OnPoint Consulting by Hau Pham

I hear this question often from Vietnamese companies that want to do business with German partners:

How do we enter the German market?

The honest answer: it starts with your own objective, business maturity, and real commercial possibilities.

There is no single route for every company. If the goal is to sell more, the practical question is not only “Should we set up in Germany?” but rather:

What is stopping us from selling more today?

At a glance

For many Vietnamese companies, entering Germany does not immediately require setting up a German company. In many cases, the first priority should be buyer readiness: product documentation, certification, pricing logic, sales materials, response quality, and understanding what German buyers actually check before moving forward.

A local presence in Germany can create credibility and commercial value. But it also costs money and requires management attention. It should solve a real business problem, not just look good on paper.

Selling from Vietnam can work — but only if the buyer experience is ready

Vietnamese companies can absolutely sell directly from Vietnam.

This is especially true in sectors where German companies are already actively sourcing from Vietnam, such as coffee, agricultural products, furniture, textiles, industrial components, and selected manufacturing products.

But direct selling only works when the company is ready for how German buyers assess suppliers.

German buyers usually do not only look at the product. They look at the full supplier picture:

• Is the documentation complete?
• Are product specifications clear?
• Are quality standards and certifications available?
• Are prices, Incoterms, delivery timelines, and payment terms professionally presented?
• Is communication reliable and structured?
• Can the supplier explain why they are a serious long-term partner?

If discussions keep going nowhere, the issue is often not only the product.

Very often, the gap is between what the German buyer expects and what the Vietnamese supplier is showing.

Setting up in Germany is often misunderstood

For many Vietnamese businesses, coming to Germany is not mainly about executing the trade inside Germany.

It is often more about:

• building credibility;
• increasing brand familiarity;
• creating local business networks;
• supporting customer communication;
• improving follow-up with German partners;
• and making exports from Vietnam easier to sell.

That can create real commercial value.

But it also costs money.

For example, setting up a GmbH requires €25,000 share capital. In addition, companies should expect notary, registration, advisory, accounting, and ongoing administrative costs. So the decision should not be made only because “Germany sounds serious.”

The better question is:

Will a German presence help us win customers, reduce buyer concerns, or access channels that we cannot access from Vietnam alone?

When a German presence makes sense

In today’s market, many Vietnamese businesses do not need to set up a company in Germany immediately.

But there are still sectors where breaking into the partner circle or sourcing channel from the outside is much harder. This is especially true in business areas with:

• higher regulatory requirements;
• larger order volumes;
• stricter safety or technical standards;
• long supplier qualification processes;
• strong trust-based networks;
• or a need for local after-sales support.

In those cases, being present in Germany can change how the company is perceived.

It can lift the brand image, improve credibility, and make it easier to build serious relationships with buyers, partners, associations, and institutions.

My personal view

Business is a bit like dancing.

The music changes. The partner changes. The room changes.

The companies that do better are usually not the ones that copy a fixed market-entry model. They are the ones that understand the rhythm, know their position, and move accordingly.

For Vietnamese companies looking at Germany, the key is not to rush into the most expensive structure.

The key is to understand what kind of market access problem they actually need to solve.

Sometimes, that means better sales materials. Sometimes, it means a stronger German partner. Sometimes, it means local representation.

And sometimes, yes, it may mean setting up a German company.

But the sequence matters. Because entering Germany is not just about being present.

It is about being ready.

By Hau Pham