작성일자: 2013.9.3

작성자: 하노이 무역관 Ms. Pham Thu Ha (ha.phamthu88@gmail.com)

 

 

1. Overview of Home Appliances Market

 

 ○ The increasing standard of living and incomes of people along with the fast urbanization in Vietnam fuelled the growth of home appliances market even though the category faced challenges during the economic uncertainties and financial crises during 2011~2012. In addition, manufacturers cooperated with retailers to constantly launch promotions and discounts appealing to consumers wanting such products to cater to their lifestyles. According to Euromonitor International, sales of consumer appliances increased steadily from nearly 12,000 billion VND in 2005 to approximately 40,000 billion VND in 2012. The 2012 sales figures for luxury appliances and large capacity appliances recorded a moderate gain in share of current value and total volume sales. This increase was indicative of consumers opting for more upmarket products due to more progressive lifestyles and also to ease their burden due to a busy lifestyle. Consumers facing a hectic schedule set out to look for larger-capacity products, especially in major appliances such as refrigeration appliances and automatic washing machines, to save time from purchasing more appliances and performing chores at home. Up market consumers chose more expensive appliances, such as wine coolers/chillers and multi-door refrigeration appliances.

 

 ○ Multinational brands continued to dominate consumer appliances, limiting domestic players largely to the small appliances market. The table below indicates the rising retail volume of multinational brands from 2007 to 2010, which Sanyo, LG, Toshiba and Panasonic were favor the most.

 

            Source: Euromonitor International from official statistics, trade associations, trade press,

                          company research, store checks, trade interviews, trade sources

 

 ○ The primary factor for this was that due to the large capital investment required for the technology to be produced and marketed; only larger brands had the capability to enter the fray. This left domestic brands to settle in small appliances, where the technology required is not as complex and the brand is of less importance to consumers.

 

 ○ Modern society makes extraordinary demands on new and useful materials to perform to manufacture other products. In all industries, this means to work better, last longer, be stronger and remain always totally reliable. Silicones help make this possible. Knowing that, Vietnamese enterprises start using silicone in several areas such as electronics, kitchen appliances…In Vietnam, there are silicone rubber, silence/ coupling agents, silicone oil that currently being traded and used. In fact, the amount of silicone produced in Vietnam is extremely minor when compared with importing amount.

 

 

2. Import-Export trend

 

 ○ As can be seen in the chart 2.1, there is increasing trend of HS Code 391000 by years (from 2008 to 2012). Over the period, the value of silicone imported rose more than double from US$ 30,000 thousand to 76,000 thousand except for a slight reduce of US$ 3000 thousand in 2009 due to the world financial crisis.

 

Chart 2.1 Imported value of HS Code 391000

(Unit: US$ thousand)

Source: www.trademap.org

 

 ○ Based on the line graph 2.2, the amount of silicone produced by Vietnam witnessed an insignificant growth. Exported value of silicone sharply increased from US$ 90 thousand to about US$ 800 thousand. However, the amount being produced by Vietnam dropped remarkably to around US$ 400 thousand at the end of the period.

 

Chart 2.2 Exported value of HS Code 391000

(Unit: US$ thousand)

Source: www.trademap.org

 

 ○ The chart 2.3 indicates the import value by percentage, categorized by countries.

 

Chart 2.3 Imported value of HS Code 391000 by countries

Source: www.trademap.org

 

 ○ The above chart shows that Vietnam imports this material mostly from Japan and it takes 44% of market share. Korea is on the 2nd place with 17%, followed by Thailand, China, America and other countries.

 

 ○ The chart 2.4 shows export value by countries. The chart states that 58% of products with HS Code 391000 exported to Hongkong China, followed by India with 12%. The 3rd place is Korea with 7% and the rest is China, Israel and other countries.

 

Chart 2.4 Exported value of HS Code 391000 by countries

Source: www.trademap.org

 

 

3. Investigation of producing companies

 

□ Producing Companies Overview

 

 ○ Most home appliances in Vietnam are produced by multinational companies which have advance technology and professional production process. Haier Electrical Appliances Vietnam Co Ltd continued to be the dominating player in refrigeration appliances in 2012 with a volume share of 69%. Its brand Sanyo is a very well-established brand in Vietnam, notable for its good quality products and affordable prices. LG Electronics Vietnam Co was ranked second in 2012 with a market share of 8%, followed by Toshiba Consumer Products Vietnam, Matsushita Home Appliances, Sharp Electronics and STC Co Ltd. Besides, there are several Vietnamese enterprises working on household appliances.

 

□ Companies and Contacts

 

 ○ There is no data in number of Vietnamese enterprises producing home appliances. According to Kotra’s search, below are contacts of both Vietnamese companies and multinational companies in Vietnam.

 

 ○ Viettronics Bien Hoa Joint Stock

  - The forerunner of the Company Bien Hoa Electronics Company is a joint up Sanyo Electric Co., Japan and Vietnam Company was established on 04 May 1971 with a trade name Sanyo Industries Vietnam company, specializing in manufacture of household electronics products. Main products are laptop gateway, desktop, LCD Television, LCD Monitors, Karaoke Amplifier, Speaker…

  - Director: Mr. Truong Cong Binh

  - Address: 52-54 Nguyen Hue Str., Dist. 1, HCMC.

  - Tel: +84-8-3829 6017

  - Fax: +84-8-3829 6064

  - E mail: belco@hcm.vnn.vn

  - Website: www.belco.com.vn

 

 ○ Hoa Phat Refrigeration Engineering Co., Ltd

  - Hoa Phat Refrigeration Engineering Co., Ltd was established in July 2001. Their aims is “Producing replace importing goods”, the company has invested in home appliance production line for refrigeration, electric household products for example: refrigerator, air conditioner, washing machine, enameled electric water heater under Funiki brand. Those mentioned above products are produced by modern technology line with coorperation of the leading groups in the world to produce high quality and stable product. The products of Hoa Phat Refrigeration Engineering Company have achived remarkable position on local market share compare with other famous brands.

  - Director: Mr. Tran Tuan Duong

  - Address: 39 Nguyen Dinh Chieu Str., Hai Ba Trung Dist., Hanoi.

  - Tel: +84-4-6284 8777

  - Fax: +84-4-6279 7081

  - Website: www.hoaphat.com.vn

 

 ○ Hanel  Co., Ltd

  - Since the establishment in 1984, Hanel has 37 member companies, more than 7,000 employees with diversify business areas. The main business areas include manufacturing, trading in and import-export of electric Items, IT Products(hardware and software), industry automation appliances and precision mechanic parts and plastic products.

  - Director: Ms.Trinh Minh Chau

  - Address: No2 Chua Boc Str., Dong Da Dist., Hanoi.

  - Tel: +84-8-3852 2102

  - Fax: +84-8-3852 5770

  - E mail: info@hanel.com.vn

  - Website: www.hanel.com.vn

 

 ○ R.E.E Electric Appliances Co., Ltd

  - Having ever been a professional distributor that knew thoroughly strong and weak points of refrigeration equipment of many popular trademarks from Japan, United State…R.E.E produced the first Vietnam trademark Air- conditioner: ‘Reetech’. They have European-technology manufacturing facilities in Tan Binh Industrial Zone with nearly 12,000sqm that can assemble and produce diverse products, from home appliances to civil and commercial A/C (up to 320,000 BTU/h). Reetech products quality certificated to align with related domestic and international standards, as ASHARE(US), JIS(Japan), ISO4141/1994, ISO817.

  - Director: Mr. Tran Trong Quy

  - Address: 364 Cong Hoa Str., Tan Binh Dist., HCMC

  - Tel: +84-8-3849 7227

  - Fax: +84-8-3810 4468

  - E mail: info@reetech.com.vn

  - Website: www. reetech.com.vn

 

 ○ Carrier Vietnam Co. Ltd

  - Carrier returned to Vietnam in 1991 was among the first US companies to establish repersentative offices in both Hanoi and Ho Chi Minh city. In March 1997, Carrier received an invesment license from Ministry of Planning and Investment of Vietnam to establish a 100% foreign-owned enterprise in Vietnam. This enterprise named Carrier Vietnam Air Conditioning Company Ltd has now been established with total investment of US$ 10 million and duration of 50 years.

  - The business objectives of Carrier Vietnamm Ltd are to manufacture, assemble, and distribute air conditioning equipment and to provide sevices including system design, application engineering, installation contracting, maintenance, repair and parts supply for air conditioning equipment and systems in Vietnam.

  - Director: Mr. Nguyen Quoc Hung

  - Address: 23 Hoang Cau Street, O Cho Dua Ward, Dong Da District, Hanoi.

  - Tel: +84-4-3824 7684

  - Fax: +84-4-38247683

  - E mail: carriervietnam@carrier.utc.com

  - Website: www.carrier-vietnam.com

 

 ○ Philips Vietnam Co., Ltd

  - Philips Vietnam under the conglomerate Royal Philips Electronics was founded in 1891 and its headquartered is in Amsterdam. The company has marketed electronic products such as lighting products, televisions, irons, CD-R/RW, LCD and medical image products, which have been highly spoken of by Vietnamese consumers.

  - Director: Mr. Alex Ngian King Ling

  - Address: 16th Floor, Ladeco Building, 266 Doi Can Str., Ba Dinh Dist., Hanoi.

  - Tel: +84-4-3734 6484

  - Fax: +84-4-3734 6482

  - Website: www.philips.com.vn