The German Business Association (GBA) in Vietnam has reported significant progress in the second quarter of 2024, highlighting the expansion of German businesses and the vital role of forward-thinking actions in the country’s economic landscape, with a focus on green investment.
Despite facing various challenges, German companies continue to show their dedication to sustainable development and innovation in Vietnam.
German investment in Vietnam remains on the rise.
Recently, two major German firms, Ziehl-Abegg and Kärcher, have made headlines with substantial expansions in Vietnam, according to a GBA press release on Monday.
These expansions not only reflect the increasing confidence of German businesses in the Vietnamese market but also emphasize the strategic importance of Vietnam as a center for industrial production and innovation.
ZIEHL-ABEGG Vietnam, a global leader in ventilation, control, and drive technology, has inaugurated a new production facility in Dong Nai Province, southern Vietnam.
The $20 million plant is set to be a key component in the company’s global supply chain, taking advantage of Vietnam’s skilled workforce and favorable production conditions.
This facility will focus on producing advanced ventilation systems and electric drives for both domestic and international markets.
Kärcher, known globally for its innovative cleaning solutions, has also launched a new production plant at Tam Hiep Port Logistics Industrial Park in Quang Nam Province, central Vietnam.
This facility, with a total investment of over VND500 billion (approximately $19.7 million), includes a 13,500 m² factory and 1,600 m² of office space. This expansion aligns with Kärcher’s broader strategy to meet the increasing demand for its products in the Asian market.
By establishing a significant presence in Vietnam, Kärcher aims to leverage the country’s strategic location, improving industrial infrastructure, and growing consumer market.
A major focus for the GBA in 2024 is the development of green energy solutions.
The GBA’s initiative, ‘Greening FDI: Investment Capital in Ho Chi Minh City,’ emphasizes the importance of sustainable investments in driving economic growth and environmental sustainability.
This initiative aims to attract eco-friendly foreign direct investment (FDI) to Ho Chi Minh City and promote the adoption of energy-efficient technologies.
“Our commitment to green energy is unwavering,” said Alexander Ziehe, chairman of the GBA. “We, at GBA, believe that sustainable investments are crucial for long-term economic growth and environmental protection. By collaborating with local and international partners, we can build a greener and more prosperous future for Vietnam.”
