Cargo transportation at Sai Gon port  (Photo: VNP/vietnam.vnanet.vn)

Wirtschaftswoche (WIWO) said increasing numbers of German companies in Asia are seeking alternative solutions and have realised that Vietnam could become a production hub in the future.

The Kärcher group in Winnenden, a family-owned global leader in cleaning technology, has selected Vietnam as its newest production location, according to WIWO.

The Bayern state-based Kurz, a leading international company in thin-film technology and a market leader in the hot stamping field, has set up a new production facility in Quy Nhon city.

Marko Walde, chief representative of German Industry and Commerce in Vietnam (AHK Vietnam), said that since Vietnam reopened its borders on March 15, several German companies have visited its office to seek consultancy for their new production hubs. Several companies are considering relocating their production to Vietnam.

Germany Trade & Invest (GTAI) in Vietnam pointed out that international companies which are in the process of diversifying their supply chains view Vietnam as an ideal investment destination. GTAI said Danish toy maker LEGO recently invested 1.29 billion USD in a new factory in Vietnam.