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Foundry Technology in Vietnam - Vietnam on the Move

BMWI Market Development Trip by VDMA and AHK Vietnam

Vietnam is on the move and a part of the Next Eleven countries. According to experts,Vietnam should belong to the circle of developing industrial countries and this is felt even today as we were able to experience the rapid upward trend the country.

The four-day VDMA market exploration trip was organized with the support of the Federal Ministry of Economics and the local host of AHK Vietnam. The trip was comprised of an extensive fact finding visit targeting the market analysis within the foundry industry in Vietnam.

From Hanoi in the north of Vietnam to Ho Chi Minh City in the south, the sixteen participants were not only taken through an interesting market study on the basis of promising figures but also by a culturally and scenically charming country which is lively and successfully free from the barrior of the socialist market economy, superficially at least.  

In addition to numerous lectures of the economic situation, the developmental potential of the country from local resident representatives of the AHK Vietnam, and through the German Embassy and GTAI - German Trade and Invest, the participants had the opportunity to visit companies and production facilities to a form a first impression of the further developements, the current situation and were able to assess the results of possible market opportunities.

At site visits, it was clear that there are considerable differences between plant equipment and production of cast products, in comparison to Europe. In this case, all participants agreed that they could imagine a large investment hold up. This is one of the reasons why foundries haven't been modernized since reunification in Vietnam back in 1975. Other foundries, however, have been in existance for only a few years and are technically equipped to a reasonable standard with quality machines from Europe.

These differences were not only found in foundries, but also in other metal producing and processing companies.

How can a market presence in Vietnam be realized? Lectures were offered to interested companies from the AHK and legal consulting firms with competent German consultants were on hand to provide information such as conditions and characteristics of the country in a new markets.

A highlight of the trip was certainly the meeting between companies and industry representatives. Around sixty interested Vietnamese participants accepted the invitation from the AHK to meet  companies. Once a promising contact was made, staff from AHK Vietnam stood as an interpreters for initiating discussions.

In summary, most participants came to the conclusion that Vietnam will develop within the next five to ten years, and this means good export opportunities for German and European machinery. Due to the very low wage levels, the country provides for a good production location in order to remain globally competitive in the long term.

Vietnam's economy should strengthen in the coming years as an industrial center in focus and we can expect exciting new developments .

In conclusion, the initiated event by the BMWI, organized by VDMA Germany and AHK Vietnam, was extremely succesful. Most participants would welcome another business initiation event in the future.

Ali Scharei , Otto Junker - Induga GmbH & Co KG
"The event was very good, the organization was perfect and was handled with extreme professional competence by the VDMA and  AHK. We thank you for this opportunity and would be pleased if similar events could take place more often."

Jürgen Himmelmann, Director of Sales for Asia  ABP System GmbH
"The trip was a great success , especially the company tour visits were interesting. Development is heading in the right direction, I 'm sure that good business will be done here in the next five to ten years."

Gerald Feuerstein, Branch Manager, at Gustav Eirich GmbH & Co KG Foundry
"It was a very interesting trip, but in my opinion, the development will still take some time : There is a large investment holdup. Whether our products can be introduced here is yet to to be seen, but you have to keep an eye on the market."

Dr. Kai Hausmann, Joest GmbH & Co KG
"To establish first contacts at this event, it was a good help. More business contacts are important because the opportunities in Vietnam grow. However, in the immediate-term it is difficult to find a good representation here, but in the long term, certainly good options will arise."

Louis Brown, Sales & Marketing Manager at Oskar FRECH GmbH & Co KG
"The development opportunities are good, much more needs to thrive and grow here but I am drawn to an overall positive conclusion . During business meetings, interesting contacts were made which will be follow by appointments . The language barrier is a hurdle and one definately needs someone who is local . I see good chances for the die casting industry, particularly in terms of high-quality used machinery."

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