Greening FDI: Unwavering commitment from German Business Association in Vietnam

German investment in Vietnam sees continued growth

In recent months, two prominent German companies, Ziehl-Abegg and Kärcher, have made headlines with substantial expansions in Vietnam. These expansions not only reflect the growing confidence of German businesses in the Vietnamese market but also highlight the strategic importance of Vietnam as a hub for industrial production and innovation.

View of Ziehl-Abegg's new factory in Dong Nai Province

Ziehl-Abegg, a global leader in ventilation, control, and drive technology, has inaugurated a new production facility in Dong Nai province. This 20-million-USD plant is expected to play a crucial role in the company’s global supply chain, leveraging Vietnam’s skilled workforce and favorable production conditions. The facility will focus on producing advanced ventilation systems and electric drives, catering to both domestic and international markets.

Kärcher, renowned worldwide for its innovative cleaning solutions, has also opened a new production plant at Tam Hiep Port Logistics Industrial Park, Quang Nam. This facility, with a total investment of over 20 million Euros, includes a 13,500 m² factory and 1,600 m² of office space. This expansion is part of Kärcher’s broader strategy to meet the growing demand for its products in the Asian market. By establishing a significant presence in Vietnam, Kärcher aims to capitalize on the country’s strategic location, improving industrial infrastructure, and burgeoning consumer market.

In 2019, as part of its cultural sponsoring, Kärcher cleaned the southern main gateway of the former imperial city of Hue in Vietnam.

Inside the Kärcher factory in Quang Nam Province

Green energy solutions

A crucial focus for the GBA in 2024 is the development of green energy solutions. As the world increasingly shifts towards sustainable practices, the importance of green energy cannot be overstated.

The GBA member’s commitment, “Greening FDI: Investment Capital in Ho Chi Minh City,” underscores the significance 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. By encouraging businesses to invest in green energy solutions, the GBA seeks to reduce Vietnam’s carbon footprint and contribute to global efforts to combat climate change.

In line with this, the GBA members have been actively involved in future minded actions such as optimizing green energy production to enhance the efficiency of the FDI sector, to develop renewable energy projects that ensure long-term energy security and sustainability. These projects include the development of solar, wind, and biomass energy, which have the potential to transform Vietnam’s energy landscape.

GBA Chairman at Germany - Vietnam business forum - Collaborative pathways to green growth in Ho Chi Minh city

“Our commitment to green energy is unwavering,” said Alexander Ziehe, GBA Chairman. “GBA believes that sustainable investments are keys 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 Vietnam.”

Vietnam’s economy has demonstrated remarkable resilience and growth in recent years. Vietnam has managed to maintain a stable and robust economic performance. This resilience is attributed to the country’s diversified economy, strong export sector, and prudent economic policies. This is a crucial consideration for foreign investors, particularly those businesses unfamiliar with the Vietnamese market.

Furthermore, Vietnam’s young and dynamic workforce is a significant asset for international businesses looking to invest in the region. According to the Chairman of 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 capitalize on these strengths, fostering a robust economic relationship between Germany and Vietnam.

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. Despite facing a challenging investment environment, German enterprises continue to demonstrate their commitment to sustainable development and innovation in Vietnam.