Greening FDI is a strategic key for German businesses | Entrepreneurs | Finance

Recently, two German enterprises, Ziehl-Abegg and Kärcher, have attracted attention when implementing investment activities in Vietnam.

In June 2024, Ziehl-Abegg, a world leader in ventilation, control and motor technology, inaugurated its manufacturing plant in Dong Nai. With a total investment of 20 million USD, Ziehl-Abegg's factory is expected to play an important role in the company's global supply chain, taking advantage of the highly skilled workforce and favorable production conditions in Vietnam.

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

Right after Ziehl-Abegg, the world-renowned brand of cleaning equipment and technology - Kärcher, also opened a new factory in Quang Nam . The total investment of the project is over 500 billion VND (equivalent to 20 million Euros), with 13,500 m² of factory and 1,600 m² of office. This investment expansion is part of Kärcher's overall strategy to meet the growing demand for cleaning equipment and accessories in the Asian market.

The recent increase in German businesses’ activities in Vietnam is clearly a positive sign. However, Vietnam’s investment environment still has some obstacles for foreign investors.

The main challenges facing German businesses include: "post-investment" administrative procedures, infrastructure synchronization and transparency of incentive policy frameworks.

"Vietnam offers German businesses many attractive opportunities. However, adapting well to the legal framework is not easy. We need to work with local authorities to continue simplifying procedures and creating a more transparent environment for foreign investors," said Alexander Ziehe, Chairman of the German Business Association (GBA).

According to GBA, green energy development solutions will be the focus of the Association's activities in 2024. Following the trend of sustainable action shifting globally, green energy is increasingly valued.

The recent commitment of GBA members to "Greening FDI in Ho Chi Minh City" once again emphasizes the importance of sustainable investment in promoting economic growth and protecting the environment.

The initiative aims to attract environmentally friendly FDI to Ho Chi Minh City and promote the adoption of energy-saving technologies. By encouraging German companies to invest in green energy solutions, GBA hopes to reduce Vietnam’s “carbon footprint” and contribute to global efforts to combat climate change.

Source: https://diaoc.nld.com.vn/xanh-hoa-fdi-la-chia-khoa-chien-luoc-cho-doanh-nghiep-duc-196240717090445395.htm