German enterprises continue to invest in Việt Nam
German enterprises continue to invest in Việt Nam
German enterprises continue to demonstrate their commitment to sustainable development and innovation in Việt Nam despite facing a challenging investment environment, affirmed the German Business Association (GBA).
Inside the Kärcher factory in Quảng Nam province. — Photo Courtesy German Business Association |
Over the past few months, the GBA has reported notable expansions by two renowned German companies, Ziehl-Abegg and Kärcher, making significant strides in Việt Nam.
These expansions not only signify the increasing confidence of German entities in the Vietnamese market but also underline Việt Nam's strategic importance as a hub for industrial production and innovation, noted the GBA.
Ziehl-Abegg, a global leader in ventilation, control, and drive technology, recently inaugurated a new US$20 million production facility in the southern province of Đồng Nai.
This plant is poised to play a pivotal role in the company's global supply chain, capitalising on Việt Nam's skilled labour force and favourable production conditions. The facility will specialise in advanced ventilation systems and electric drives for both domestic and international markets.
Similarly, Kärcher, globally acclaimed for its innovative cleaning solutions, has launched a new production plant at Tam Hiệp Port Logistics Industrial Park in the central province of Quảng Nam.
With an investment exceeding VNĐ500 billion ($19.4 million), this facility comprises a 13,500sq.m factory and 1,600sq.m of office space. This expansion aligns with Kärcher's strategic objective to meet escalating demand for its products in the Asian market.
By establishing a significant presence in Việt Nam, Kärcher aims to leverage the country's strategic location, improving industrial infrastructure, and burgeoning consumer market.
“Việt Nam offers significant opportunities, but navigating the regulatory landscape can be complex,” said Ziehe. “We are committed to working with local authorities to simplify processes and create a more transparent environment for foreign investors.”
Moreover, Việt Nam's youthful and dynamic workforce stands out as a critical asset for potential investors. According to the chairman of the GBA, the country boasts a large pool of skilled and educated workers, providing a competitive advantage for industries that rely on human capital.
The GBA’s ongoing initiatives and partnerships aim to capitalise on these strengths, fostering a robust economic relationship between Germany and Việt Nam.
By promoting bilateral trade and investment, the GBA seeks to create opportunities for businesses to thrive and contribute to the economic development of both countries.
Looking ahead, the GBA's primary focus in 2024 centres around advancing green energy solutions. With the global shift towards sustainability gaining momentum, the significance of green energy solutions cannot be understated.
The initiative "Greening FDI: Investment Capital in HCM City" underscores the importance of sustainable investments in propelling economic growth and environmental stewardship. The goal is to attract eco-friendly foreign direct investment (FDI) to HCM City and promote the adoption of energy-efficient technologies.
By encouraging investments in green energy solutions, GBA aims to reduce Việt Nam's carbon footprint and play a part in global climate change mitigation efforts.
In line with this vision, GBA members are actively involved in forward-looking initiatives such as optimising green energy production to enhance FDI sector efficiency and developing renewable energy projects for long-term energy security and sustainability.
These initiatives, including solar, wind, and biomass energy projects, hold the potential to revolutionise Việt Nam's energy landscape.
“Our commitment to green energy is unwavering,” said Alexander Ziehe. “We, the GBA, believe that sustainable investments are key to long-term economic growth and environmental protection. By working together with local and international partners, we can create a greener and more prosperous future for Việt Nam.”
