The Vietnamese and Southeast Asian markets remain crucial areas of potential for Bosch Group, given Vietnam's rapid economic growth and its appeal to foreign investors, said CEO of Bosch Vietnam Dominik Meichle.

Can you tell us about Bosch’s journey in Vietnam up to now? How has Vietnam's investment environment changed compared to when Bosch first entered the market?

Bosch's key milestones include the establishment of the Bosch Vietnam representative office in 1994. In 2007, we launched Robert Bosch Vietnam Ltd., followed by the establishment of our manufacturing plant in Dong Nai province in 2008.

To further enhance our capabilities, we inaugurated the first software center and R&D center in 2010. In 2014, we introduced the second R&D center. In 2020, we embarked on a new business joint venture to develop smart aquaculture solutions with AQUAEASY. Then, in 2022, we witnessed the expansion of our software center to Hanoi and the establishment of a new legal entity: Bosch Home Appliances Vietnam.

Looking at the Vietnamese market, Bosch recognizes its tremendous growth and potential. Nowadays, the country's economy is on a positive trajectory, and a notable aspect is the presence of a motivated, young, well-educated, and smart workforce that significantly contributes to the positive business environment in Vietnam.

We take pride in being early believers in Vietnam's potential, identifying important markets, and acting as a front runner in investments. As a company, Bosch has grown into one of the largest European investors in Vietnam, a testament to its commitment and confidence in the country's potential.

Can you share some of Bosch's achievements in Vietnam, especially in 2023?

In 2023, the global market faced challenges due to economic downturns and numerous uncertainties, and Vietnam was not exempt from these difficulties. However, amidst these challenges, we recognized an opportunity for reflection and adjustment.

2023 was also a year marked by significant achievements for Bosch. We were awarded the "Great Place To Work" and "Best Place to Work in Vietnam" certificates (nine years in a row), maintaining the top working environment in manufacturing, and being recognized as a Top50 Sustainability Company. These accolades reflect the company's dedication to its people as the driving force behind its success.

With approximately 6,000 employees, Bosch has cultivated a conducive business environment in Vietnam, fostering a culture of growth and innovation. Notably, we take pride in graduating 134 students from our technical apprenticeship center, underscoring our commitment to skill development.

A standout achievement in Vietnam is Bosch's ownership of the world's largest continuously variable transmission (CVT) push belt plant, celebrating its 15-year anniversary. We have successfully produced 50 million CVT push belts, showcasing the success of our manufacturing efforts.

Recently, we inaugurated a 1,540-kWp solar panel system on the rooftop of our plant to provide green energy for production. This system is expected to generate approximately 2,300 MWh of clean energy annually, resulting in a reduction of 1,630 tons of CO2 emissions. This reduction is equivalent to planting around 30,000 trees annually.

Our aim is to establish Bosch Vietnam as a hub for various functions within the company. From R&D to sales and after-sales solutions, Bosch has nurtured diverse capabilities in Vietnam. Notably, the company has ventured into logistics services, recently initiating logistics consulting and service outsourcing processes at Bosch Global Software Solutions Vietnam (BGSV), contributing to the company's overall global operations.

What challenges are you facing in Vietnam? How do you evaluate the markets in Vietnam and your personal sentiments about Bosch Vietnam and the Vietnamese market?

The main challenge we are currently navigating stems from the global economy and a slightly slower GDP growth rate than anticipated in Vietnam. However, despite these challenges, we perceive more opportunities than setbacks. The Vietnamese and Southeast Asian markets remain crucial areas of potential for Bosch Group, given Vietnam's rapid economic growth and its appeal to foreign investors.

Speaking from a personal perspective after residing in Vietnam for one and a half years, I can confidently affirm that it has been an excellent choice. Serving as the managing director for Bosch in Vietnam is a deep honor. The people here are exceptional, open-minded, and optimistic. This positive mindset not only inspires optimism but also aligns seamlessly with Bosch's vision of mutual growth, seeking meaningful partnerships both within our organization and with society.

Bosch transcends being just another company; we are dedicated to mutual growth and have made substantial investments in Vietnam, establishing ourselves as one of the leading European investors. The recognition as the "Best Place to Work" for eight consecutive years underscores the exceptional working environment we foster. Our commitment to making a positive impact is evident in our CSR activities, including tree planting, trash collection, and support for orphanages.

In summary, Bosch's experience in Vietnam has been overwhelmingly positive. The company attributes its success to the support and cooperation received from the Vietnamese people and the proactive stance of the government in driving progress.

In 2024 and the coming years, which areas will Bosch want to invest in and develop in Vietnam?

Over three decades, Bosch has invested EUR450 million across five legal entities, establishing a comprehensive presence in manufacturing, R&D, business centers, and service centers. This underscores Bosch's strong commitment to the Vietnamese market.

In the short term, in line with market challenges in 2023-2024, our focus remains on delivering the best customer experience. We collaborate closely with distributors to understand market demands, preparing enhanced solutions for the local market once the economy rebounds. Strict cost controls are in place to meet economic targets, and prioritizing employee preparation is a short-term goal.

Our long-term strategies in Vietnam include a significant push in factory automation solutions, providing full hardware and software capabilities to anticipate increased foreign direct investment in Vietnam. In building technologies, we emphasize communication solutions, exploring segments like camera surveillance with artificial intelligence modules. The power tools sector aims to bring innovations tailored to diverse market segments, capitalizing on growing incomes in Vietnamese society.

AQUAEASY is a focus for intensifying activities and promoting new technology adoption in agriculture. Beyond current ventures, we actively seek to bring new solutions to Vietnam, exploring logistic consulting and discussions for potential introduction of new products and solutions. Software and services, including the exploration of a digital twin concept for live tracking and health monitoring of machines in factories, are also in focus.

With a well-established presence, Bosch continues to contribute to Vietnam's growth and development, embracing innovation opportunities and serving as a strategic partner in the country's journey towards prosperity.

Source: The Investor