DEG supports German SME in setting up production in Vietnam

ImpactConnect financing for INGUN GROUP

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is providing a EUR 3 million loan under its ImpactConnect programme to enable INGUN GROUP to set up production in Vietnam. INGUN will lease a factory building in Mỹ Hào and will invest in new machinery, equipment and raw materials. The total investment volume is around EUR 5 million. This will be its first foreign production unit.

Testing technology deployed in many business sectors

Founded in 1971, INGUN is a family-run company with over 450 employees that develops and sells testing technology. Since its founding it has become a world market leader for testing and connector equipment, assuring the quality of electrical and electronic products with its portfolio. These products are used across numerous industries, from the automotive/e-mobility sector through to telecommunications, medical technology and renewable energy.

INGUN sells its products at more than 40 of its own locations worldwide. Setting up a Vietnamese subsidiary will take some of the pressure off the Konstanz plant, which to date has been the sole production site. In the beginning, assembly and production activities for the important Asia-Pacific (APAC) region will be handled from Vietnam. Production materials will be sourced globally in Europe, the United States and Asia.

“In the case of INGUN, we are helping a medium-sized, family-owned German company that has extensive expertise in a relevant market niche to set up its first production unit abroad. The financing will enable INGUN to expand production to Vietnam, thereby enhancing the company’s growth and resilience,” says Klaus Helsper, Head of German Business at DEG.

“The construction of our additional production facility in Vietnam is marking the beginning of a new chapter. The support of DEG was crucial for this. We wish to be closer to our customers in the APAC region, make our supply chains more sustainable and, at the same time, create attractive jobs in Vietnam, which is particularly important to us as a family-owned company," comments Armin Karl, owner of the INGUN Group.

Creation of 30 local jobs in the first year

The investment will also contribute to knowledge transfer, as INGUN is bringing to Vietnam a product range not previously produced there. In the first year, the subsidiary is expected to create around 30 new jobs with living wages to set up production, with further expansion stages being planned.

DEG’s ImpactConnect programme helps to support and assist mainly German companies with smaller investment projects in developing countries and emerging economies. In 2024 alone, through ImpactConnect, DEG provided loans totalling EUR 74 million from resources made available by the German Federal Ministry for Economic Cooperation and Development (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung, BMZ) to fund 19 projects in more risky markets. For example, ImpactConnect funds were provided to spice manufacturer Fuchs as pre-financing for the pepper harvest in Brazil, and to food manufacturer Lorenz to produce nutrient-rich food in India.

ImpactConnect – We finance progress