You can follow following steps.
1. Read your file (You can use Scanner)
2. Split data and store them in a `ArrayList`. 
Now let's try to work on these.
How to read a file?
 File file=new File("yourFilePath");
 Scanner scanner=new Scanner(file);
 while (scanner.hasNextLine()){
      // now you can get content of file from here.
 }
Then split content and create an instance of your object set region and add country list.
Note:
Use proper naming conversion. change regionCountry to RegionCountry. Class name should start with capital letter.
Make all variables private and add public getters and setters. 
Edit: for your comment. How to determine the group and country?
 File file=new File("/home/ruchira/Test.txt");
 Scanner scanner=new Scanner(file);
 RegionCountry regionCountry = null;
 List<RegionCountry> regionCountryList=new ArrayList<>();
 List<String> groupList=new ArrayList<>();
 groupList.add("A");
 groupList.add("B");
 List<String> countryList = null;
  while (scanner.hasNextLine()){
    String line=scanner.nextLine();
    if(!"".equals(line)){
        if(groupList.contains(line.trim())){
         if(regionCountry!=null&&groupList.contains(regionCountry.getRegion())){
             regionCountryList.add(regionCountry);
           }
          regionCountry=new RegionCountry();
          regionCountry.setRegion(line);
          countryList=new ArrayList<>();
          }else {
          countryList.add(line);    // those will never be null in this logic
          regionCountry.setCountryList(countryList);
         }
       }
   }
  regionCountryList.add(regionCountry);// last group you have to take from here.
  System.out.println(regionCountryList);
Out put: (I have override toString() in RegionCountry )
[RegionCountry{region='A', countryList=[Germany, India]},
  RegionCountry{region='B', countryList=[Vietnam, China]}]