Bosch is now the largest German investor in Dong Nai with an investment of hundreds of millions of dollars, creating more motivation for other foreign investors when deciding to set up business in Vietnam.
After two consecutive years of investment expansion, Bosch Corporation (Germany) plans to pour an additional of 47 million USD into Dong Nai province to diversify its products for the ongoing urbanization and industrialization process in Vietnam, which is happening strongly. This corporation is known to pour capital into a plant in Dong Nai.
In recent years, Bosch has continuously increased investment capital for its factory in Dong Nai. Specifically, in 2015 and 2016, Bosch increased additional capital of 23 and 22 million USD respectively. According to a Bosch representative, these investments are to import more machinery and production lines to meet growing demand for power transmission belts in Southeast Asian and Asian auto manufacturers.
Currently, there are 4 projects in the field of high technology in Dong Nai, in which the Bosch’s has the largest registered capital. Accordingly, the most recent revision of Bosch’s investment certificate in Dong Nai is November 2016. By that time, the total registered capital of this project was over 365 million USD.
The process of urbanization and industrialization in Vietnam is happening strongly and the whole country is moving towards a smart economy. That is a great opportunity for Bosch to diversify its products, especially in the area of connectivity solutions for 4.0 smart and industrial cities.
According to the study, the continuous expansion of investment in recent years has allowed the Bosch plant in Dong Nai to localize the whole process of power transmission production. At the present, all products made from this factory are exported.
Bosch’s localization of its entire production process and its continued investment capital increasing are creating opportunities for other Vietnamese manufacturers to become part of Bosch’s global production chain. However, becoming a supplier for a high-tech business like Bosch will not be easy.