DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH has granted a EUR 3 million loan to INGUN GROUP through its ImpactConnect programme. The funding will support INGUN GROUP, a German company, in establishing its first production facility outside Germany, located in Mỹ Hào, Vietnam. The total investment for this project is approximately EUR 5 million. INGUN will lease a factory building and invest in machinery, equipment, and raw materials.
Founded in 1971, INGUN is a family-owned business with more than 450 employees. The company specializes in testing and connector technology for quality assurance of electrical and electronic products. Its products are used in industries such as automotive and e-mobility, telecommunications, medical technology, and renewable energy. INGUN currently operates at over 40 locations worldwide, but until now its only production site has been in Konstanz, Germany.
The new facility in Vietnam is intended to relieve the Konstanz plant and focus on assembly and production activities for the Asia-Pacific (APAC) region. Production materials will be sourced globally from Europe, the United States, and Asia.
Klaus Helsper, Head of German Business at DEG, stated: “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.”
Armin Karl, owner of the INGUN Group, commented: “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.”
The Vietnam subsidiary is expected to create about 30 local jobs with living wages during its first year of operation, with plans for further expansion and knowledge transfer as INGUN introduces its product range to the country.
DEG’s ImpactConnect programme primarily supports German companies with smaller investments in developing countries and emerging economies. In 2024, DEG provided EUR 74 million in loans through ImpactConnect for 19 projects in higher-risk markets using resources from the German Federal Ministry for Economic Cooperation and Development (BMZ). Recent beneficiaries include spice manufacturer Fuchs for pepper harvest pre-financing in Brazil and food manufacturer Lorenz for producing nutrient-rich food in India.