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Dong Nai: A Key Focus for German Investors

(News Portal – Dong Nai) - Dong Nai is becoming a major attraction for German investors. With its strategic location, synchronized development of transport infrastructure, industrial parks, and its commitment to green and sustainable economic development, Dong Nai stands out as a prime destination. Additionally, the lower investment costs in Dong Nai and Viet Nam compared to other countries, coupled with the government's commitment to achieving Net Zero by 2050, have further enhanced its appeal to German investors. 

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Production line of a German enterprise in Dong Nai. 

Opportunities to Collaborate with Large, Modern Enterprises

Economic experts believe that attracting high-quality German enterprises to Dong Nai will create opportunities to advance the province's high-tech industrial development. Germany is recognized as a leading economy in Europe and one of the world's top nations in high-quality industrial production, applying advanced technologies in sectors such as automotive, machinery, chemicals, pharmaceuticals, and engineering.

With effective and practical investment attraction policies, including tax and land lease incentives, Dong Nai has become an ideal destination for both domestic and foreign investors. Recently, the province has attracted notable German FDI projects, such as the Ziehl-Abegg Viet Nam Co., Ltd. project in Nhon Trach 2 Industrial Park, the Pearl Viet Nam Factory project in Long Thanh District, and various expansion projects. Moreover, Dong Nai has drawn other significant projects from prominent German corporations such as Bosch, Schaeffler, Bayer, Neumann Gruppe, FRIWO, and FRAMAS.

During a visit and working session by the German Business Association in Viet Nam, which included over 40 German enterprises seeking investment opportunities in Dong Nai, Alexander Ziehe, Chairman of the German Business Association in Viet Nam, expressed that German businesses are highly impressed with Dong Nai's open investment environment and professional approach toward foreign businesses. He emphasized that Dong Nai is poised to enhance its position as an attractive investment destination amidst regional competition and to prevent FDI projects from shifting to neighboring countries.
Enhancing Investment Appeal

The Long Thanh International Airport Project is expected to complete its first phase and become operational by 2026. This project will serve as a key driver for economic and social development in Dong Nai and the entire southern key economic region. At that time, Dong Nai will benefit from multimodal connectivity, including road, air, rail, and inland waterways.

Nguyen Tri Phuong, Head of the Dong Nai Industrial Zone Authority, noted that most German project investors in Dong Nai have consistently adhered to their registered timelines during construction and operations. For instance, the factory of Ziehl-Abegg Viet Nam Co., Ltd. recently commenced operations less than a year after receiving its investment certificate. This project has created jobs, increased local income levels, and contributed to the province's socio-economic development. Additionally, during the project implementation phase, Ziehl-Abegg Viet Nam and other German companies strictly complied with legal regulations, prioritized environmental protection, and implemented labor policies in partnership with local authorities to promote green and sustainable industrial development.

To attract more German businesses to Dong Nai, Chairman Alexander Ziehe suggested addressing several issues. Firstly, Dong Nai's administrative procedures for handling investment permits, construction permits, environmental and safety regulations, and customs clearance remain complex and time-consuming, increasing costs and delaying business operations. Secondly, restrictions on international payment regulations have caused delays in transactions and cash flow for many projects, impacting the growth and success of businesses. Other challenges include: insufficient transport infrastructure to meet demand, high transportation and warehousing costs affecting production and competitiveness, and difficulties in obtaining visas and work permits for foreign workers.​

Chairman Ziehe urged Dong Nai to accelerate administrative reforms, eliminate complex foreign exchange reporting requirements, simplify investment capital regulations, and offer tax and financial incentives. He also recommended enhancing infrastructure development and revising policies related to labor, land-use procedures, and partnership agreements. 

Author: Nam Huu

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