Photo: Marquardt Group
German investor to build $39 million factory producing automotive components.
The Marquardt Group, a German manufacturer of electro-mechanical and electronic switches and switching systems, is in discussions over building a factory in Da Nang to produce automotive components, with initial investment capital of $39 million.
Mr. Peter Schaumann, Vice President Asia with the Marquardt Group, met with leaders from the Da Nang Provincial People’s Committee on June 28.
Mr. Schaumann said that this was the second time the Marquardt Group has sent representatives to Da Nang to learn more about the city’s investment climate. “The Group is seeking a suitable site in Vietnam to build a manufacturing plant for hi-tech products used in the automotive industry and other industries,” he was quoted as saying.
Deputy Chairman of People’s Committee Tran Van Mien expressed his gratitude for the visit by the German guests. The city, he assured them, gives top priority to attracting FDI inflows into its hi-tech industry.
The first phase of the project is expected to have total investment capital of at least $39 million and create 500-600 jobs.
The Marquardt Group was founded in 1925 and is headquartered in Rietheim-Weilheim in Germany. It is one of Germany’s leading manufacturers of electro-mechanical and electronic switches for use in households and the automotive and other industries.
The group operates in all key markets around the world and has offices in ten countries with more than 8,500 employees in total. In 2015 its revenue was $1.11 billion.
Da Nang has struggled to attract significant amounts of FDI in recent times despite topping the Provincial Competitive Index (PCI) for the third consecutive year in 2015.
According to the latest figures from the Foreign Investment Agency under the Ministry of Planning and Investment, as at December 31, 2015 Da Nang had attracted 386 projects with total registered capital of $3.66 billion.
In the first half of this year it was ranked 36th out of 53 cities and provinces attracting FDI, with 30 projects and total registered capital of just $8.49 million.
Da Nang has a good investment environment and high competitiveness index but investors are still not enthusiastic about investing in the city. According to Deputy Secretary of the People’s Committee Vo Tri Cong, its tax and land rental incentives are not on par with other localities.
For example, land rentals at the Hoa Khanh Industrial Zone have averaged $1 per meter recently, higher than the $0.8 in the nearby Dien Nam-Dien Ngoc Industrial Zone in Quang Nam province.
“A lack of cleared land has also presented challenges to the city in drawing up a specific development plan for logistics as well as banking and finance,” he was quoted as saying, adding that ineffective investment promotion was a problem.
- Marquardt Group
- Da Nang