V-Stainless Steel: Major investor in Vietnamese steel sector

10:28 | 25/12/2018 Companies

(VEN) - Aware of the potential of the Vietnamese market, as well as favorable investment conditions in Vietnam, the V-Stainless Steel Co., Ltd. has invested dozens of millions of US dollars in the construction of a stainless steel factory in the southeastern province of Dong Nai. The company supplies the Vietnamese market with high-quality steel products, contributing to the development of the domestic steel sector.

major investor in vietnamese steel sector
Company general director Shinsuke Koichiyama

According to company general director Shinsuke Koichiyama, before investing in Vietnam, V-Stainless Steel carried out very careful market studies of Japan, Vietnam and other countries in the region.

V-Stainless Steel’s analyses show that the golden age of the Japanese stainless steel market has been over as Japan has completely built its prosperous industrial sector. However, the demand for stainless steel in other Asian countries is expected to grow rapidly. To expand its operations in Asia, V-Stainless Steel has decided to build a new manufacturing facility in Vietnam where it could find adequate infrastructure for distribution, a potential stainless steel market, good relations with Japanese companies and hard-working employees.

The company’s analyses show that as a developing country with a population of more than 90 million, Vietnam is in need of new food processing and pharmaceutical plants, and the demand for use of stainless steel in construction therefore will increase strongly. Moreover, the development of industries will also bring about higher demand for stainless steel.

The cooperation and friendship between Vietnam and Japan have been strengthened over years. The Japanese government has provided Vietnam with active support in the field of infrastructure development, with the construction of the North-South railway being an example, and encouraged Japanese companies to invest in Vietnam.

In the context of many Japanese companies moving their manufacturing facilities from China to Vietnam, the demand for stainless steel in Vietnam will increase. With half of its population aged under 30, Vietnam has an abundant workforce. Vietnamese people are hard-working and skillful.

V-STAINLESS STEEL CO., LTD.

Address: Lane 4, Nhon Trach 3 Industrial Zone (second phase), Long Tho Commune, Nhon Trach District, Dong Nai Province, Vietnam

Tel: +84 (251) 3566966

Fax: +84 (251) 3566366

Website: http://v-stainless-steel.com

Given its analyses, in 2013, V-Stainless Steel established a company with 100 percent of Japanese capital in Vietnam and invested in building its manufacturing factory in Dong Nai Province’s Nhon Trach 3 Industrial Zone.

In 2015, the company invested an additional US$10 million in the factory. Currently, it supplies the market with 700 tonnes of stainless steel and bronze products for use in the construction, industrial and medical sectors.

V-Stainless Steel chose Dong Nai to locate its factory in Vietnam because the province has a dynamic economy and an open investment environment. The local government’s willingness to support business development was another reason.

A representative of the company said that in Vietnam, V-Stainless Steel is a leading manufacturer and distributor of stainless steel materials and high-grade steel products, such as plates, pipes, round bars, flat bars, angled and U-shaped steel. Although it is capable to supply large volumes of products, the company is willing to serve customers with small orders. Apart from JIS and ASTM/ASME standards, V-Stainless Steel also supplies and distributes steel products meeting other standards. Its products are sold in Vietnam and have won customer trust for stable quality. The company has set up a management system to control the entire work process, from procurement of input materials to product shipment. The system has a specific function that enables the company to prevent shipping errors. Besides, its traceability allows V-Stainless Steel to answer customer questions in the future.

According to the company’s representative, V-Stainless Steel has improved its customer response system to increase its speed and accuracy. It has identified material supply sources to reduce the time required to fill an order.

Furthermore, the company has maintained training activities to improve the qualifications and skills of each member to meet growing customer demand.

V-Stainless Steel plans to build a steel surface treatment facility in the north in the near future.

The company believes state support policies will help it promote sustainable development and maintain long-term operations in Vietnam. Distributing products imported from Japan, V-Stainless Steel has to pay large volumes of taxes. It also has to pay service charges for a consulting company that helps it implement complicated procedures to apply for an investment license in Vietnam. Therefore, V-Stainless Steel expects the Vietnamese government will create favorable conditions for the company to maintain long-term operations in Vietnam.

V-Stainless Steel has contributed to promoting the Vietnamese steel sector by supplying the market with high-quality

products meeting the demand of high-grade projects.

Pham Ky