A number of German firms in the printing and packaging industry are seeking new opportunities in Vietnam to cash in on local growing demand for high-tech products amidst the wide influence of Industry 4.0.
The German Industry and Commerce Vietnam and PrintPromotion on December 5 held a conference on print 4.0 and packaging in Hanoi, attracting German and Vietnamese leading players in the industry who are planning to venture further here.
The firms included Messe Düsseldorf Asia – the organiser of leading medical fairs – Koenig & Bauer AG, Müller Martini AG, KURZ, Windmöller & Hölscher Asia-Pacific Co., Ltd., IST Metz GmbH, among many others.
At the event, German manufacturers of machines and systems for the printing and paper converting industry presented their innovations, technologies, and new applications.
According to Corvet Holding AG, the representative office of many international printing and packaging brands, including those from Germany such as Koenig & Bauer AG, and Perfecta in Vietnam, the demand for packaging printers is growing significantly in Vietnam, driven by an increase in the number of small-sized families, fast-food, and manufacturing development.
“Now manufacturers and customers pay more attention to environmentally-friendly products. Moreover, amid the wide influence of Industry 4.0, packaging printers go high-tech and energy-saving to meet demand,” Nguyen Thanh Le, chief representative of Corvet Holding AG, told VIR.
Similarly, M.V Lien Minh Co., Ltd., the sole distributor of KURZ, sees more opportunities from Industry 4.0.
Le Thi Huong Thom from Business Development at M.V Lien Minh Co., Ltd., said that Industry 4.0 brings opportunities to optimise operational efficiency, cut costs, and meet the demand for high-quality products.
“Vietnamese customers in the past preferred cheap products. However, they require higher-quality ones now, and price is no longer the most decisive factor,” Thom said. “We have seen an increase in our sale volume thanks to the contribution of the market and projects, as well as customer demand for digital print.”
According to the German Industry and Commerce Vietnam, more German companies are interested in expanding operations in Vietnam in the future to benefit from the local economic growth and free trade agreements.
The AHK World Business Outlook (AHK WBO) 2019 based on a regular survey among member companies of the German Chambers of Commerce Abroad, delegations and representative offices shows that German businesses operating in Vietnam assess both their own business situation and future business expectations significantly better than in 2018.
Accordingly, 77 per cent rate their current business situation in Vietnam as good and 3 per cent as poor, while in 2018 only 56 per cent had a positive view of their situation in Vietnam. The balance points increased from 52 points to 74 points. The great increase in business expectations is really surprising. While the positive ratings rose from 56 to 72 per cent, the number of negative ratings fell from 4 to 0 per cent. Accordingly, the balance climbed significantly from 52 to 72 points, implying a high level of German business confidence in Vietnam.