Germany’s Ingun Group, a family-owned manufacturer of testing and connector equipment, is setting up its first overseas production facility in Vietnam with a loan from DEG, the German development finance institution.

DEG is lending €3 million ( US$3.47 million ) under its ImpactConnect programme to enable Ingun to establish operations in the northern province of Hung Yen, which is near Hanoi.

Ingun will lease a factory building and invest in new machinery, equipment and raw materials, DEG says, adding that the total investment is around €5 million.

Founded in 1971 and headquartered in Konstanz, southern Germany, Ingun develops and sells testing technology for ensuring the quality of electrical and electronic products. Its equipment is applied across multiple industries, including automotive and e-mobility, telecommunications, medical technology, and renewable energy.

Assembly and production

With more than 450 employees and over 40 of its own locations worldwide, Ingun plans for the new Vietnamese subsidiary to relieve pressure on its main production plant in Konstanz. Initially, the Vietnam site will handle assembly and production activities for the Asia-Pacific region. Production materials will be sourced globally from Europe, the United States, and Asia, according to DEG.

“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,” says Klaus Helsper, head of German business at DEG. “The financing will enable Ingun to expand production to Vietnam, thereby enhancing the company’s growth and resilience.”

“The construction of our additional production facility in Vietnam marks the beginning of a new chapter,” says Ingun Group owner Armin Karl.

“DEG’s support 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.”

As the son of company founder Wolfgang Karl, Armin Karl has led the company since 2007, according to its website.

Job creation and technology transfer

Ingun’s investment in Vietnam is expected to create about 30 local jobs in the first year, with further expansion phases planned. The company will also introduce a range of testing products not previously produced in the country, contributing to knowledge transfer and industrial capacity, DEG says.

The German development finance institution notes that its ImpactConnect programme supports mainly German companies implementing smaller investment projects in developing countries and emerging economies.

In 2024 alone, the programme provided €74 million in loans, funded by Germany’s Federal Ministry for Economic Cooperation and Development, to finance 19 projects in higher-risk markets.