Panasonic accelerates to expand Electrical Construction Material business in Vietnam

HCMC, Vietnam – Panasonic Electric Works Company, Panasonic Corporation (hereinafter referred to as Electric Works Company),, announced that Panasonic Electric Works Vietnam Co., Ltd, being responsible for manufacturing and sales of wiring devices, lighting and IAQ (Indoor Air Quality) in where as a strategic country of their oversea business, will accelerate the expansion of its electrical construction material business in Vietnam to grow up sales approx.3.5 times in FY2030 from FY2021, which equivalent to 50 billion yen.

Since after the adoption of market economy in 1990, 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 2030. In addition, having young average age of the whole country 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 will correspond to the growing demands of housing and construction market in Vietnam based on three main strategies of "Building a local product development system", "Strengthen the local production capacity of wiring devices and IAQ" and "Proposing solutions across the product categories through co-creation with local companies".

Regional Headquarter Chairman Wataru Matsumoto quote 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.

Mr. Wataru Matsumoto - Regional Headquarter Chairman Electric Works Southeast Asia & Oceania share about the business strategies of Electric Works Company in Southeast Asia

General Director of Panasonic Electric Works Vietnam Co., Ltd, Kazuhiro Takeuji share:
“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.”

Mr. Kazuhiro Takeuji - General Director of Panasonic Electric Works Vietnam share about the business development strategies of the company in Vietnam

Based on the three main strategies that Electric Works Company will commit to the growing demand in Vietnam’s housing and construction markets in the next level of qualification, Electric Works Company holds 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 described in the following points:

1. 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 new product development and planning organization for the local market in the categories of wiring devices and lighting as well as Indoor Air Quality (IAQ).

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 FY2023.

For IAQ, 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 FY2023, now started building an organization. In addition, the local product development structure for the wiring devices business has started in FY2021 and sequentially proceed new product development.

2. Strengthen the local production capacity of wiring devices and IAQ

Constructing a new building in its factory to expand production systems, to aim for starting operation as responsible 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 optimize the production line including the existing building by incorporating the know-how of “Tsu” factory, Japan’s mother factory that manufactures electrical wiring devices and circuit breakers. This advancement promises to about 1.8 times production from the current level to 150 million units per year for wiring devices in FY2029.

Moreover, the new factory for IAQ will strengthen its production facility with a goal of achieving a production scale of those IAQ produced in Southeast Asia to be equal to 1.5 times from FY2020, with approximately 3 million units per year in FY 2025.

3. Proposing solutions across product categories through co-creation with local companies

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.

Specifically aiming about its provisions for energy-saving by combining high efficiency lighting and sensors, also providing a secure, safe and comfortable air environment with Antibacterial Space Deodorizer “Ziaino” and heat exchanger, as well as deployment of convenience by controlling indoor devices using IoT platforms for homes.

Electrics Works Company will continue to rollout proposals of 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.

At the exhibition, Panasonic Electric Works will introduce impressive products and latest technology of Panasonic. Some pictures at the exhibition area: