Chinese air-conditioning firm Sanhua opens expanded factory in northern Vietnam

Sanhua (Vietnam) Company Limited inaugurated Thursday its expanded factory, part of a $60.8 million investment, in the northern coastal city of Hai Phong.

The company is a subsidiary of China’s Sanhua Holding Group, a leader in the heating, ventilation, air-conditioning and refrigeration (HVAC-R) industry. The parent firm is well known as a supplier for global air-conditioning brands like Gree, Midea, Daikin and Carrier.

The expanded factory marks completion of the second phase of Sanhua Vietnam’s investment, covering 13.1 hectares. The project's first phase covering 7,000 square meters (0.7 hectares) was completed in August 2018.

Speaking at the inauguration ceremony, Le Trung Kien, head of the Hai Phong Economic Zone Authority (HEZA), said municipal authorities were committed to supporting Sanhua and Chinese businesses in the city.

So far, Hai Phong has attracted $12 billion in Chinese direct investment, a significant portion of the city’s total FDI of $40 billion, he noted.

Chinese firms in the city, including well-known names like Flat, Tongwei TP-Link, Autel and Sanhua, record average annual revenues of $5.34 billion and employ 58,000 people, making a major contribution to the city’s socioeconomic development, Kien said.

Sanhua’s latest move is a demonstration of Chinese businesses’ successful investments in Hai Phong towards marking the 75th anniversary of the Vietnam-China partnership (1950-2025), he added.

The firm managed to complete the project's second phase earlier than the original schedule of November 2024. The expanded factory will increase the firm’s annual output from 7,000 to 11,900 tons of components.