Bonfiglioli, from Italy to Asia: How Vietnam and India Are Reshaping Global Manufacturing
This article was originally published in Italian in Panorama on 21st September 2026.
Please note that this is a courtesy translation of the Italian language article originally published in the Panorama Magazine Issue at:
https://www.panorama.it/attualita/economia/bonfiglioli-dallitalia-allasia-come-vietnam-e-india-stanno-ridisegnando-la-manifattura-globale
In the Italian Design Icons series, we tell the stories of Italian companies that have been able to transform industrial expertise, innovation and international vision into sustainable growth and global success. Among these, Bonfiglioli S.p.A. represents a particularly significant case. Founded in Bologna in 1956 as a family-owned company, Bonfiglioli is today a global player in solutions for power transmission, motion control and industrial automation, with applications in the industrial, mobile machinery and wind energy sectors. With a presence in over 80 countries, including China and Vietnam, around 5,000 employees and a consolidated turnover of over 1.17 billion euros in 2025, the Group continues to strengthen its presence in international markets with the highest growth potential.
In this scenario, Southeast Asia is taking on an increasingly strategic role. In recent years, Vietnam has established itself as one of the main manufacturing hubs in the region, attracting international investment and gaining a growing role in global value chains. Bonfiglioli operates in the country through its sales office in Hanoi and its production plant in the Ho Chi Minh City area, which covers a total area of 93,844 square meters, of which 22,000 square meters of covered area, testifying to Vietnam's increasingly strategic role in the Group's global development strategies.
Leading the Group's development in the region is Ing. Andrea Genuini, Regional Manager Southeast Asia & Oceania, now based in Vietnam. A mechanical engineer graduated with honors from the University of Bologna, he has over twenty years of international experience in managing complex industrial organizations and implementing operational transformation projects on a global scale. Prior to taking up his current position, he spent seven years in India, where he led the growth of Bonfiglioli Industrial Solutions, contributing to the development of new production facilities and strengthening the Group's presence in one of Asia's most dynamic markets.
Today Andrea Genuini is responsible for the Group's strategy, commercial activities, production and operations in nine Asia-Pacific countries, coordinating a multicultural organization of about 300 professionals and a business that generates annual revenues of about 100 million euros. A privileged observatory to understand how global value chains are changing, what the new geographies of international manufacturing are and what role markets such as Vietnam and India are playing in the industrial strategies of the future.
In this interview, Andrea Genuini shares his direct experience in the field and offers a concrete perspective on the transformations that are affecting Vietnam as a manufacturing hub, onthe growing weight of India and on the opportunities that Italian companies can seize in the new Asian industrial scenario.
1. Bonfiglioli invested in Vietnam over fifteen years ago, when the country was still far from its current centrality in global industrial strategies. Today, that positioning is often considered a success story: what risks were underestimated at the time and what factors have instead proved decisive in the development of the Vietnamese site over time?
When Bonfiglioli decided to invest in Vietnam over fifteen years ago, the country did not enjoy the same centrality it has today in global industrial strategies. At the time, there were several risks including political and economic uncertainty: Vietnam was still emerging as a significant player on the world stage and its infrastructure and industrial capacities were being developed. In addition, it could seem risky to rely on a market where business practices and regulations were still evolving, with potential bureaucratic hurdles.
However, there were also decisive factors that proved to be fundamental for the development of our Vietnamese site over time. Firstly, the political stability and pro-business approach of the Vietnamese government fostered a favorable environment for foreign investment, offering tax incentives and streamlining bureaucratic procedures. The presence of modern infrastructure, such as ports and road networks, facilitated the logistics and distribution of our products.
In addition, the availability of a young, motivated and highly flexible workforce has been a great advantage. The ability to attract and train local talent has allowed Bonfiglioli to grow sustainably and adapt quickly to market demands.
Finally, the growing global demand for our products, combined with Vietnam's strategic geographical location that facilitates access to the entire Asian market, has further strengthened our decision to invest in the country. Ultimately, our experience has taught us that while there are always risks associated with new opportunities, anticipating the long-term potential of a market can lead to significant success, as demonstrated by our work in Vietnam.
2. In recent years, Bonfiglioli's presence in Asia has progressively expanded on several fronts, with Vietnam as a consolidated production hub and a growing role for India. Are we facing a simple geographical expansion or a transformation towards a true multi-centric industrial model in Asia?
In recent years, Bonfiglioli's presence in Asia has gone beyond mere geographical expansion, evolving towards a multi-centric industrial model that recognizes the importance of different regional economies. While Vietnam has established itself as an established manufacturing hub, leveraging its strategic location, the availability of a young and motivated workforce and modern infrastructure, India is emerging with an increasing role in our business strategy.
This evolution is not only about expanding our network, but also about strategically adapting to the peculiarities of local markets. Each country offers unique advantages that contribute to a more flexible and diversified production, which is essential to meet the specific needs of our customers in Asia and beyond.
For example, Vietnam allows us to produce efficiently thanks to competitive costs and a favorable investment environment, while India stands out for its growing technological and innovative capacity, supported by a vibrant entrepreneurial ecosystem.
This multi-centric approach offers not only resilience to global market fluctuations, but also the possibility to optimize our operating model through synergies between the different subsidiaries, improving the efficiency and agility of our production network.
Ultimately, we are witnessing a true transformation that positions Bonfiglioli not only as a global player but also as an industrial group that knows how to exploit the unique opportunities and capabilities of each Asian market to build a sustainable and prosperous future in the region.
3. Vietnam is now increasingly integrated into the "China+1" strategies, in the context of a redefinition of global value chains. Is this new balance favoring a real industrial autonomy of Southeast Asia or rather a growing interdependence between hubs such as Vietnam, China and India?
Vietnam is increasingly establishing itself as a key player in "China+1" strategies, in a context of redefining global value chains. This evolution is creating an interesting dynamic, which favors both a growing industrial autonomy of Southeast Asia and an intensification of interdependence between hubs such as Vietnam, China and India.
On the one hand, Vietnam is gaining industrial autonomy due to its growing production capacity and attracting foreign investment. The country is diversifying its economy, developing local skills, and investing in modern infrastructure, which allows it to reduce its dependence on China. Political stability and pro-business reforms have further encouraged this process, making Vietnam an attractive option for companies looking for alternatives to China.
On the other hand, it is undeniable that emerging as an independent manufacturing hub does not mean completely eliminating interdependence. Vietnam is deeply connected with China and India through global supply chains. Many Vietnamese manufacturers, for example, rely on components and raw materials from China, and Indian markets offer significant opportunities for trade and innovation. This intertwining creates an interconnected regional ecosystem that benefits from synergies between different countries.
Ultimately, the new market balance is leading to a greater protagonism of Vietnam and Southeast Asia, but not in a perspective of isolation. The region is evolving into a complex system, in which collaboration between different industrial hubs will be essential to face future challenges and maximize growth opportunities. Therefore, we can speak of a simultaneous search for autonomy and strategic interdependence within the Asian context.
4. Automation, digitalisation and Industry 4.0 are profoundly redesigning the very concept of manufacturing competitiveness. In this scenario, how important is the cost of labour compared to factors such as stability of the context, technical skills and the ability to integrate technology into production processes?
In a context in which automation, digitization and Industry 4.0 are reshaping the landscape of manufacturing competitiveness, labor costs, while maintaining a certain level of importance, are undergoing a significant evolution compared to other key factors.
Today, competitiveness is no longer based solely on reducing operating costs, but rather on a combination of context stability, technical expertise and the ability to integrate technology into production processes.
1) Context Stability: Political and economic stability is key to attracting long-term investment. A pro-business environment, where companies can operate without excessive bureaucracy or disruption, provides a solid foundation for manufacturing operations. Companies tend to position themselves in countries that provide security and predictability, factors that can pay off in the long term even beyond the cost benefits.
2) Technical skills: As technologies advance, the technical skills of the workforce are becoming increasingly crucial. Automated and digitized production processes require an openness to continuous learning and the ability to handle advanced technological tools. Therefore, countries with a well-trained and adaptable workforce can significantly increase their competitiveness, partially offsetting labor costs.
3) Technological Integration Capabilities: The ability to integrate advanced technologies into production processes represents an additional competitive advantage. Companies that adopt Industry 4.0 practices are able to optimize operational efficiency, improve product quality and reduce production times. In this scenario, leadership in technology and innovation becomes a determining factor for success, beyond and more than just the cost of labor.
In summary, while labor costs continue to be a significant factor in the decision regarding the location of production, it is losing its dominance with respect to the stability of the context, the availability of technical skills and the ability to integrate technology. Companies that know how to exploit these elements will be better positioned to face future challenges and remain competitive in increasingly complex global markets.
5. In the light of your experience in Asian markets, what concrete lessons have you gained in defining the internationalization strategies of Italian companies in Asia?
In the light of my experience in Asian markets, I have gained several concrete lessons that can guide the internationalization strategies of Italian companies in Asia:
1) Understanding Cultural Differences: Local culture plays a vital role in the success of any internationalization strategy. It is crucial to invest time in understanding the business practices, customs, and values of the specific Asian culture you want to enter. Respectful and informed management of cultural differences can facilitate stronger partnerships and longer-lasting business relationships.
2) Flexibility and Adaptation: Asian markets are extremely dynamic and constantly evolving. Italian companies must be ready to adapt their strategies and products to the specific needs of different Asian markets. This implies not only changes to products, but also the adaptation of marketing, distribution and customer service strategies.
3) Invest in Local Human Capital: Building a competent and motivated local team is crucial for success. Italian companies must value local talent by investing in employee training and skills development. Not only does this improve operational efficiency, but it also fosters brand acceptance among local consumers.
4) Networking Strategies and Partnerships: Building strategic alliances with local partners can make it easier to enter Asian markets. Partnering with local distributors, suppliers, and other businesses can provide an in-depth understanding of the market and faster access to customers. Partnerships can also help mitigate the risks associated with entering new markets.
5) Focus on Sustainability: Asian consumers are becoming increasingly aware and attentive to sustainable practices. Italian companies should integrate sustainability into their product strategies and operations. Celebrating and communicating a commitment to sustainability can not only attract customers, but it can also strengthen the brand's reputation in the market.
6) Use Technology: Digitalization is a driving force in many Asian markets. Italian businesses need to leverage digital technologies to optimize operations, improve customer interaction, and better strategize distribution. Investing in digital platforms and tools can present significant opportunities to reach a wider customer base.
In conclusion, the internationalization of Italian companies in Asia requires a well-thought-out strategy that takes into account local specificities, promotes human capital, and embraces sustainability and technology. Companies that adopt an integrated and flexible approach will be better positioned to thrive in this complex and ever-changing environment.
Bonfiglioli's experience is a concrete example of how Italian and European companies can strengthen their global competitiveness through innovation, local presence and the ability to integrate into new Asian industrial ecosystems, transforming the international dimension into sustainable value and long-term relationships.
By: Carlo Diego D'Andrea, Managing Partner of D'Andrea & Partners Legal Counsel, National Vice President of the European Union Chamber of Commerce in China (EUCCC).
