Vietnam an increasingly important pillar in KURZ’s Asia strategy: exec

Vietnam offers more than cost competitiveness. The country is increasingly demonstrating operational reliability and ability to build long-term, trust based partnerships - factors that are particularly important for European investors, says Waegner Thomas Fritz, general director of KURZ Vietnam.

KURZ, a leading German technology group, is currently investing in the project Factory of KURZ Vietnam Company Limited in Binh Dinh – Phase 2 at Becamex Binh Dinh Industrial Park in Gia Lai. How do you evaluate the investment environment in this central province? What key factors have led KURZ to expand its investment in Vietnam, especially in the context of increasing regional competition?

Vietnam continues to demonstrate itself as an attractive investment destination in Asia. Its political stability, pro-investment policies, and a young, adaptable workforce provide a strong foundation for long-term industrial development. Over the past few years, we have also observed a clear improvement in the reliability and consistency of the business environment.

For KURZ, the decision to expand in Vietnam is not based solely on cost competitiveness. More importantly, it is about reliability, stability, and the ability to build long-term partnerships. These factors are increasingly important in the context of global supply chain diversification.

Gia Lai has emerged as a promising new investment destination. During our site selection and project development phases, we experienced strong support, openness, and a cooperative spirit from local authorities and stakeholders.

In addition, the human factor plays an important role. The resilience, diligence, and sincerity of the local community help create a foundation of trust, which is particularly valuable for long-term investment decisions.

What are the most noticeable improvements in your views, after KURZ operating in Vietnam for four years? What are the challenges?

After four years of operation in Vietnam, we have observed clear and encouraging progress. Infrastructure has been gradually improved, administrative procedures have become more transparent and efficient, and support from local authorities has become increasingly proactive and business-oriented.

At the same time, there are still areas that could be further enhanced to attract more hightech investments, particularly from Europe. These include the availability of a highly skilled workforce for specialized industries, the development of a more integrated supporting industry ecosystem, and continued improvements in logistics connectivity.

We view these not as barriers, but as opportunities for Vietnam to further strengthen its capabilities and enhance its position in the global supply chain.

From a business perspective, what should Gia Lai province do to become more attractive for high-tech investment projects in the future?

We believe that Gia Lai can further enhance its attractiveness for high-tech investment through three key pillars. First, logistics and the industrial ecosystem: Continued development of connectivity between industrial zones, ports, and airports plays an important role.

In addition, enhancing the capabilities of nearby logistics hubs, developing supporting industries, and expanding industrial infrastructure solutions such as international-standard warehousing would contribute to improving overall investment readiness.

Second, healthcare and emergency response: The availability of high-quality healthcare services and efficient emergency response systems - particularly when located close to industrial zones (e.g. within approximately 15 mins) - would help ensure employee well-being and operational continuity.

Third, the living environment for expatriates: Further development of international standard healthcare services with English-speaking staff, broader education options, suitable housing, and effective communication channels for the expatriate community would play an important role in attracting and retaining global talents.

Overall, continued improvements in infrastructure, essential services, ad living conditions would further strengthen Gia Lai’s competitiveness and attractiveness as a destination for high-tech investment.

KURZ Vietnam Co., Ltd. recently broke ground on the phase 2 factory. How does this expansion, with an additional investment of approximately VND830 billion ($31.52 million), reflect the group’s long-term strategy in Vietnam?

The phase 2 expansion is not simply an increase in production capacity. It represents a strategic step to strengthen our technological capabilities and enhance our ability to serve both regional and global markets.

This investment reflects our long-term commitment to Vietnam, while also reinforcing its increasingly important role within our manufacturing footprint in Asia. It is aligned with our global strategy of building production networks that are both reliable and of high quality.

In the next 5-10 years, what role will Vietnam play in KURZ’s global supply chain?Could Gia Lai become a key manufacturing hub for the group in the region?

In the next 5-10 years, Vietnam is expected to become an increasingly important pillar in KURZ’s Asia strategy. It will contribute to diversifying our global manufacturing footprint and enhancing the resilience of our global supply chain.

Building on this foundation, we believe that Gia Lai has the potential to gradually develop into a manufacturing base for the group, supported by its existing strengths as well as continued improvements in infrastructure and the investment ecosystem.

What message would you like to send to German investors in particular, and European investors in general, who are considering opportunities in Vietnam?

Vietnam is a dynamic investment destination with clear long-term potential. The government’s ongoing efforts to improve the business environment, combined with a young workforce and deeper integration into global markets, are creating meaningful opportunities for international investors.

From KURZ’s perspective, Vietnam offers more than cost competitiveness. It is increasingly demonstrating operational reliability and ability to build long-term, trust based partnerships – factors that are particularly important for European investors.

To succeed in Vietnam, companies should approach the market with a long-term perspective and be prepared to adapt to local conditions. A collaborative mindset, proactive engagement, and a commitment to sustainable development are key foundations for long-term success.

With its continuously improving conditions and strong growth potential, Vietnam remains a compelling option for European investors, especially those pursuing long-term strategic development.

KURZ Group, a leading technology group headquartered in Germany, comprises multiple specialized companies whose products are widely used across key industries such as automotive, electronics, packaging, and premium consumer goods, meeting strict international standards.