Panasonic ramps up expansion in Vietnam
Panasonic ramps up expansion in Vietnam
Panasonic Electric Works Vietnam Co., Ltd. (Electric Works Company) will accelerate the expansion of its electrical construction material business to grow sales by approximately 3.5 times in FY2030 from FY2021, equivalent to a $365 million increase.
Since the adoption of the market economy in 1990, Vietnam has been steadily growing for more than 30 years and is expected to continue at an annual rate of about 6 per cent until 2030. With its low average age and foreseeable continuous economic growth, the number of new construction projects for single-family homes and high-rise buildings is expected to increase in the future.
Electric Works Company is holding an exhibition in Ho Chi Minh City from July 12 to 15 to demonstrate the new company's capabilities in modern housing and to strengthen relationships with its co-creation partners in the country.
Electric Works Company will respond to the growing demands of the housing and construction market in Vietnam based on its three main strategies of building a local product development system, strengthening the local production capacity of wiring and indoor air quality (IAQ) devices, and proposing solutions across the product categories through co-creation with local companies.
Regional headquarter chairman Wataru Matsumoto said, “Electric Works Company deploys a wide range of electronic construction materials globally and provides solutions to social issues. One of the most important countries for our future business growth is Vietnam, where we expect to grow together by offering a variety of products to fulfil the strong demands of the local market.”
Wataru Matsumoto, Regional Headquarter chairman of Electric Works Southeast Asia & Oceania speaking about the business strategies of Electric Works Company in Southeast Asia
Kazuhiro Takeuji, general director of Panasonic Electric Works Vietnam Co., Ltd. stated, “We have been striving to provide a safe and secure electrical environment by focusing on wiring devices that are accepted by a large number of products. In the future, we will further strengthen the manufacturing structure of existing businesses and construct local development bases to expand our range of products. We will continue to provide secure, safe, and comfortable lives to Vietnamese people through the synchronization of all processes from development to manufacturing and sales.”
Panasonic's three main strategies include building a local product development system. In order to rapidly develop products that respond to local issues and needs, Electric Works Company will gradually build up a new product development and planning organisation for the local market in the categories of wiring devices, lighting, and IAQ.
For lighting, the company will establish a quality control department that is in line with Japan's domestic standards. Local suppliers will be provided with know-how and shared quality control standards in order to build an original design manufacturer development and procurement system by FY2023.
The new factory in Binh Duong province, which was launched jointly with Panasonic Ecology Systems Co., Ltd. in 2021, aims to open a research and development department for IAQ solutions in FY2023.
A key focus is strengthening the local production capacity of wiring devices and IAQ. Electric Works Company will construct a new building in its factory to expand production systems, aiming to start operations for domestic manufacturing and sales of wiring devices and circuit breakers in Vietnam by FY2023.
In addition, to expand production space, the company is planning to optimise the production line including the existing building by incorporating the know-how of the Tsu factory – Japan’s mother factory that manufactures electrical wiring devices and circuit breakers. This advancement promises a 1.8-fold increase in production by FY2029 from the current level to 150 million units of wiring devices per year.
Moreover, the new factory for IAQ will strengthen its production facility with a goal of achieving approximately 3 million units per year in FY2025.
The third target is proposing solutions across product categories through co-creation with local companies. The company will be more active in building relationships with developers and proposing solutions that engage deeply with local demands.
In terms of its provisions for energy-saving, Electric Works Company will combine high-efficiency lighting and sensors, provide a secure, safe, and comfortable air environment with the Antibacterial Space Deodoriser Ziaino and heat exchanger, and deploy indoor devices using IoT platforms for homes.
