After several years of planning and
construction, Groz-Beckert has now arrived in Vietnam. Production is up and
running, and developing at a rapid pace. Join us as we describe the company's
exciting journey from Albstadt to Vietnam!
In 2006 the textile industry had been streaming to Asia for years, establishing
a presence in the region in order to reach its customers quickly via short
paths. Countries like Vietnam, Cambodia and Laos, among others, were making
efforts to attract international investors. But were the basic framework
A stable political and legal system, good infrastructure and sufficient
manpower formed the foundations of an ideal investment climate. In a comparison
of the different countries, Vietnam was an appealing candidate. It had embraced
the modern world and was eager for international acclaim as an economic
partner. Its membership of ASEAN and AFTA as well as WTO all offered security
and new opportunities. The human factor was also decisive: Vietnamese people are
greatly attracted to crafts and technology.
In 2007 Groz-Beckert decided on Vietnam. The plan: to build a production plant
for knitting and sewing machine needles plus system components, to complement
the plants in India and China. The objective was to create a state-of-the-art
production plant that would employ around 600 people by the year 2016.
But where could the plant be built?
The regions around Hanoi and Ho Chi Minh City offered very good infrastructure,
but were quite a challenge in terms of workforce availability. Investment zones
outside the metropolitan areas provided only limited scope for creative
construction. The remaining alternative was to build "out in the
countryside." This would be a time-consuming and tricky task that would
impose certain natural limitations on investment. Groz-Beckert decided to rise
to this challenge, and chose a site roughly 25 km outside the city of Da Nang.
A factory is built
Extensive preliminary work and foundation
formalities were followed by acquisition of the sought-after investment licence
in April 2008. The plan gradually took on shape.
For the countryside location outside Da Nang, land-use rights for 50 years had
to be applied for - because foreigners are not allowed to purchase land in
Vietnam. This process required patience but involved no serious problems.
The construction period was complicated and also exciting. The decision to
solve problems creatively rather than relying blindly on bureaucracy turned out
to be very helpful indeed.
The building was ready for occupation by August 2010, and production started
just one month later. The focus was, as ever, on thorough training of all local
employees. Basic mechanical training was followed by an intensive course in
needle production. Experienced specialists were on hand to pass on their
expertise and to train their Vietnamese colleagues.
After almost five years, Groz-Beckert has
achieved its objective.
The official opening
ceremony for the Groz-Beckert Vietnam plant took place on March 4, 2011, and
was attended by members of the Management Board as well as invited guests from
industry and politics. German and Vietnamese employees experienced this day as
a milestone in the company's history. In retrospect everyone agrees that
Vietnam was definitely the right choice! The entire project has been a positive
intercultural experience - and the course has now been set for the future.