HCMC, Vietnam - Electric Works Company, Panasonic Corporation (hereinafter referred to as Electric Works Company), has announced that Panasonic Electric Works Vietnam Co., Ltd., being responsible for manufacturing and sales of wiring devices, lighting and IAQ (Indoor Air Quality) in a strategic country for overseas business, will accelerate the expansion of its electrical construction materials business in Vietnam to increase sales approximately 3.5-fold in FY2031* compared to FY2022, equivalent to 50 billion yen.
Since its adoption of a market economy in 1986, Vietnam has been steadily growing its economy for more than 30 years and is expected to continue to grow at an annual rate of about 6% until 2024. In addition, having a young median age among the country's population as well as 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 will respond to the growing demands of the housing and construction markets in Vietnam in accordance with the three main strategies of "building a local product development system", "strengthen the local production capacity of wiring devices and IAQ devices" and "proposing solutions across product categories through co-creation with local companies".
* Fiscal 2031 refers to the year ending March 31, 2031.
- Quote from the Regional Headquarter Chairman, Wataru Matsumoto :
"Electric Works Company deploys globally a wide range of electric construction material and provides solution to social issues in the various countries, and one of the most important countries for our future business growth is Vietnam, where therefore, we expect to grow together by offering variety of products to fulfill the very positive demand of Vietnam market."
- Quote from the General Director of Panasonic Electric Works Vietnam Co., Ltd., Kazuhiro Takeuji :
"We have been striving to provide a safe and secure electrical environment by focusing around wiring devices, and being accepted with a large number of products in Vietnam.
In the future, we will further strengthen the manufacturing structure of existing businesses as well as constructing local development bases plus lighting etc. to propose wider range of products, we will continue to provide secure, safe and comfortable lives to Vietnamese people through the synchronization of all processes from development, manufacturing, to sales."
Based on the three main strategies that Electric Works Company will follow as it addresses the growing demand in Vietnam's housing and construction markets in the next level of qualification, the company will hold an exhibition in Ho Chi Minh City on July 12 to 15, 2022 to demonstrate the new company's capabilities in modern housing and to strengthen relationships with co-creation partners in Vietnam.
Panasonic's three main strategies are as follows:
1. Build 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 new product development and planning organization for the local market for wiring devices and lighting as well as Indoor Air Quality (IAQ) devices.
For lighting, Electric Works Company will establish a quality control department which is in line with Japan's domestic standards. Local suppliers will be provided with field know-how and shared quality control standards in order to build an ODM development and procurement system within FY2024.
For IAQ devices, in 2021, in the new factory for IAQ such as ceiling fans and ventilation fans in Binh Duong Province, which was launched jointly with Panasonic Ecology Systems Co., Ltd., to aim for opening a research and development department for IAQ solutions in FY2024, now started building an organization. In addition, the local product development structure for the wiring devices business has begun in FY2022 and continues its sequential new product development.
2. Strengthen the local production capacity of wiring devices and IAQ devices
Electric Works Company is constructing a new building in its factory to expand production systems, to aim with hopes of starting operations shouldering the domestic manufacturing and sales of wiring devices and circuit breakers in Vietnam by FY2024.
In addition to expanding production space, the company is planning to optimize its production line, including that of the existing building by incorporating know-how from the "Tsu" Factory, Japan's mother factory that manufactures electrical wiring devices and circuit breakers. This advancement promises to increase production approximately 1.8-fold from the current level to 150 million units per year for wiring devices in FY2030.
Moreover, the new factory for IAQ will strengthen its production facility with a goal of achieving a production scale of IAQ devices produced in Southeast Asia equal to 1.5 times its numbers from FY2021, approximately 3 million units per year in FY 2026.
3. Proposing solutions across product categories through co-creation with local companies
Electric Works Company plans to be more active in building co-creation relationships with Vietnamese local companies such as developers and proposing solutions that engage deeply with local demands to resolve social problems by crossover the product categories.
More specifically, it aims to allow for energy-saving by combining high efficiency lighting and sensors, also providing a secure, safe and comfortable air environment with its Antibacterial Deodorizer "ziaino"and heat exchanger, as well as by providing convenience through the controlling of indoor devices using IoT platforms for homes.
Electrics Works Company will continue to roll out proposals for a variety of solution in each country, focusing on the electrical construction materials business, and contributing to the realization of energy-saving and comfortable lifestyles.
About the Panasonic Group
A global leader in developing innovative technologies and solutions for wide-ranging applications in the consumer electronics, housing, automotive, industry, communications, and energy sectors worldwide, the Panasonic Group switched to an operating company system on April 1, 2022 with Panasonic Holdings Corporation serving as a holding company and eight companies positioned under its umbrella. Founded in 1918, the Group is committed to enhancing the well-being of people and society and conducts its businesses based on founding principles applied to generate new value and offer sustainable solutions for today's world. The Group reported consolidated net sales of 7,388.8 billion yen for the year ended March 31, 2022. Devoted to improving the well-being of people, the Panasonic Group is united in providing superior products and services to help you Live Your Best. To learn more about the Panasonic Group, please visit: https://holdings.panasonic/global/
Panasonic Group of Companies in Vietnam
Panasonic Vietnam (PV) is the first 100% foreign invested company to assume the role of the country headquarter in Vietnam. As of April 2022, Panasonic Vietnam Group comprises of seven companies including Panasonic Vietnam and its sales division of Panasonic Sales Vietnam (PSV), Panasonic Research & Development Center Vietnam (PRDCV), four manufacturing companies including Panasonic Appliances Vietnam (PAPVN), Panasonic System Networks Vietnam (PSNV), Panasonic Industrial Devices Vietnam (PIDVN), Panasonic Electric Works Vietnam Co., Ltd. (PEWVN) (previously named as Panasonic Life Solutions Vietnam), and the Panasonic Insurance Service Vietnam (PISVN). The Group currently employs a total workforce of more than 7,000 employees. In Vietnam, Panasonic is one among those enterprises that place great emphasis on social activities surrounding education and environment for wellness life of Vietnamese people and sustainable development of Vietnam. Learn more about Panasonic Vietnam: http://panasonic.com/vn/
Panasonic Electric Works Vietnam Co., Ltd.
Panasonic Electric Works Vietnam (formerly known as Panasonic Life Solutions Vietnam) is a 100% foreign Capital Company established in January 2013 as a member of Panasonic Group companies in Vietnam. The company specialized in manufacturing and trading of wiring devices, circuit breakers, indoor air quality devices (IAQ devices), pumps, fans, lighting products, home appliances, B2B. Our factory aims to manufacture and provide a large supply of Japanese quality electrical equipment tailored to suit the needs of not only the local market but also Southeast Asia and Japan market.