Business
Home appliance firms eye integration
The home appliance industry should see promising growth amid more economic integration with the world, experts said at a recent conference in Hanoi.
The conference, held by the Hanoi Stock Exchange (HNX), VietinBank Securities Company and Son Ha Sai Gon JSC, forecast a bright picture of development for local home appliance production.
Vo Van Quyen, head of the Domestic Market Department from the Ministry of Industry and Trade said home appliance consumption accounts for 9 percent of total personal consumption worth 12.5 billion USD to 13 billion USD.
Quyen said the growth came from the high number of population between 18 and 45 years old and higher income which led to changes in consumption. It was also from the interest in buying a local brand from both urban and rural areas in the country.
At the same time, Quyen said the Trans Pacific Partnership, the ASEAN Economic Community, the Free Trade Agreements with Japan, the Republic of Korea and other partners have opened up opportunities and challenges for the industry as they could enjoy tax incentives with many countries when exporting their products.
Phan The Rue, former Minister of Trade, said with a population of over 90 million and about 100 million people by 2020, the demand for home appliances would be huge.
Khong Phan Duc, General Director of VietinBankSec, said Vietnamese spent 66 percent of their total personal income on home expenses, much higher than 32 percent spent by the Singaporeans. He said spending on home appliances ranked second after food and beverages.
As one of the leading manufacturers of metal tanks, containers and storage instruments, Son Ha Sai Gon JSC has been spreading its distribution network to the rural areas of Vietnam to attract local buyers.
It has also exported to the neighbouring countries of Laos and Cambodia and produced high-end products to export to the US and Canada.
Nguyen Xuan Phu, chairman of Sunhouse Group, a local manufacturer and distributor of cookware and electric home appliances in Vietnam, thought that the home appliance industry which uses basic materials could benefit from the cheaper prices of materials in the next three years.
However, Phu also brought up some challenges from integration when the country faces strong competitors such as Thailand and the RoK who will also benefit from the zero percent tax. He said the risk of losing the local market is very large due to the consumer trends of buying foreign products.
Meanwhile, Nghiem Phu Hung, CEO of Son Ha Sai Gon JSC, said technology is still a shortcoming for many domestic businesses in the industry; as a result, most of the local products are not special or outstanding compared with others. Hung added while an improvement in technology is urgent, it is not easy work.
At the conference, former minister Rue said the dependence on imported materials from non-partnership countries will bring more challenges to the industry.
Vo Van Quyen, head of the Domestic Market Department from the Ministry of Industry and Trade said home appliance consumption accounts for 9 percent of total personal consumption worth 12.5 billion USD to 13 billion USD.
Quyen said the growth came from the high number of population between 18 and 45 years old and higher income which led to changes in consumption. It was also from the interest in buying a local brand from both urban and rural areas in the country.
At the same time, Quyen said the Trans Pacific Partnership, the ASEAN Economic Community, the Free Trade Agreements with Japan, the Republic of Korea and other partners have opened up opportunities and challenges for the industry as they could enjoy tax incentives with many countries when exporting their products.
Phan The Rue, former Minister of Trade, said with a population of over 90 million and about 100 million people by 2020, the demand for home appliances would be huge.
Photo for illustration
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As one of the leading manufacturers of metal tanks, containers and storage instruments, Son Ha Sai Gon JSC has been spreading its distribution network to the rural areas of Vietnam to attract local buyers.
It has also exported to the neighbouring countries of Laos and Cambodia and produced high-end products to export to the US and Canada.
Nguyen Xuan Phu, chairman of Sunhouse Group, a local manufacturer and distributor of cookware and electric home appliances in Vietnam, thought that the home appliance industry which uses basic materials could benefit from the cheaper prices of materials in the next three years.
However, Phu also brought up some challenges from integration when the country faces strong competitors such as Thailand and the RoK who will also benefit from the zero percent tax. He said the risk of losing the local market is very large due to the consumer trends of buying foreign products.
Meanwhile, Nghiem Phu Hung, CEO of Son Ha Sai Gon JSC, said technology is still a shortcoming for many domestic businesses in the industry; as a result, most of the local products are not special or outstanding compared with others. Hung added while an improvement in technology is urgent, it is not easy work.
At the conference, former minister Rue said the dependence on imported materials from non-partnership countries will bring more challenges to the industry.
