Bosch continues strong sales growth in Vietnam

10:15 | 08/07/2015 Companies

Bosch, a leading global supplier of technology and services, ended its 2014 fiscal year with some $50 million in consolidated sales in Vietnam, thus registering a strong year-on-year growth of nine per cent, according to the company’s recent annual financial results 2014.

Bosch continues strong sales growth in Vietnam

Total net sales, including sales to non-consolidated companies and internal deliveries to affiliated companies, increased around 20 per cent compared to the year before to reach $340 million.

As of June 2015, Bosch employed around 2,200 associates in Vietnam, and expects to increase this number over the course of the year. 

“Our perse range of products and services enables us to address Vietnam’s rising consumer and industrial markets,” said Vo Quang Hue, managing director of Bosch in Vietnam. 

“We remain optimistic about our growth in Vietnam as we will continue to introduce innovative technologies and expand our R&D capabilities in the coming years,” Hue added.

Accordingly, the Mobility Solutions business sector, formerly known as Automotive Technology, progressed strongly in Vietnam over the course of 2014. 

The Bosch Gasoline Systems Plant, which produces Continuous Variable Transmission (CVT) pushbelts, continued on its growth path thanks to an increased demand from automotive manufacturers across Asia while the automotive aftermarket business increased its sales by widening its distribution network throughout Vietnam. 

The Industrial Technology business sector registered a double-digit increase in sales for 2014, whereas the Energy and Building Technology business sector also showed a healthy growth for 2014, in line with the overall market development in Vietnam over the same time period. 

In 2014, Bosch won several high profile commercial and public infrastructure projects in the country, including the installation of video systems for Vivo City in Ho Chi Minh City and Lotte Centre in Hanoi, as well as professional audio systems for Le Meridien Hotel in Ho Chi Minh City. 

The Consumer Goods business sector also performed well in 2014. This upward trend was driven by Bosch´s ability to meet customer needs in both the professional market for robust power tools, as well as in the growing Do-It-Yourself market.

In respect to research and development (R&D), Bosch’s R&D centre in Ho Chi Minh City for software and engineering, established in 2010, has steadily increased its workforce to around 750 engineers to date. 

In addition to its activities in software and engineering, Bosch also established an automotive R&D centre in Ho Chi Minh City in 2014 which initially focused on researching automotive technologies as well as on further developing the skills of the company’s workforce in Vietnam. 

Since the beginning of 2015, the automotive R&D centre has expanded its scope to lead the product development of electrical components in the application of active safety and engine management systems. 

Relative to business outlook for 2015, the Bosch Group expects global sales to grow within an exchange rate-adjusted range of 3 to 5 per cent in 2015.

Addressing the company’s recent annual press conference in Germany, the Bosch CEO Volkmar Denner said, “Our economic and technological strength in established business fields is enabling us to tap into new market segments.” 

Web-enabled products and internet-based services are one of the focal points of the company’s future business. “We are driving connectivity forward in all our business sectors and playing an active role in shaping it,” Denner added. 

In 2014, Bosch launched many new products and connected solutions, including software solutions for smart heating systems and buildings as well as for connected industry and connected mobility. With the complete acquisitions of BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH, Bosch has strengthened its position in the fields of smart homes and automated driving.

In Asia Pacific, Bosch grew its sales 17 per cent (19 per cent after adjusting for exchange-rate effects) in 2014, to $17.3 billion. At just under 27 per cent of total sales revenue, the region’s share of sales reached a new high.

Sales growth was especially strong in China, rising a nominal 27 per cent to $8.5 billion. The company achieved a year-on-year sales growth of around seven per cent in Southeast Asia by generating $893 million./.

Source: Vietnam Investment Review