Vietnam, a strategic gateway to ASEAN market

09:54 | 03/04/2015 Economy

(VEN) - Tadahito Yamamoto, President and Chief Representative of Fuji Xerox and Director of Fujifilm Group claimed Vietnam was a strategic gateway to the ASEAN (Association of Southeast Asian Nations) market when talking with Vietnam Economic News about the group’s medium and long-term strategy.

Vietnam, an important market

According Tadahito Yamamoto, the Asia Pacific region is a strategic market for the Fujifilm Group, in which Vietnam is a prominent magnet; hence, in 2013, Fuji Xerox kicked off a 57,563 square-meter factory project worth almost nine billion Japanese yen in the city of Hai Phong, which is expected to become a major international production center for the group.

Fuji Xerox has chosen Vietnam as a strategic gateway to the ASEAN market because Vietnam has an abundant, industrious and studious labor force. The government of Vietnam created favorable conditions for the company to invest in Vietnam. Hai Phong, where the company’s factory is located, has favorable infrastructure conditions, including transport and seaport projects. These important conditions encouraged the company to expand investment in the city.

An ASEAN Economic Community (AEC) will be established later this year. AEC will encompass 10 member states, creating a major trade and investment bloc and a giant market of 600 million people. Tax rates for all products traded within AEC will be reduced to zero (0) percent in 2018. This is expected to make the ASEAN economy boom. Tadahito Yamamoto said that Fuji Xerox expects the new economic community will provide more development opportunities in the larger ASEAN market.

To take future opportunities, the company plans to expand its investment in both production and service sectors. Fuji Xerox opened another service branch in Ho Chi Minh City three years ago. The company also opened branches in Myanmar and Laos, with Cambodia set to follow soon. In Vietnam, Fuji Xerox will develop and operate its factory at maximum capacity to become a strong, international standard facility capable of producing internationally recognized products, said Tadahito Yamamoto.

Increasing local content

According to Tadahito Yamamoto, the local content of the company’s product remained below expectations; in this regard, the company has achieved 50 percent of its plan; products that the company used for increasing the product’s local content mainly came from Chinese and Chinese Taipei businesses in Vietnam. 

The company is working hard to increase the local content rate to over 90 percent in 2016 in order to reduce costs, save time and improve the competitiveness of its products, especially in the context of AEC’s debut.

“We hope that Vietnamese support industry products meet our technical standards so we can use them,” Tadahito Yamamoto said.

According to its medium-term development plan, Fuji Xerox will strengthen the provision of solutions and services, apart from technologies in 2015 and 2016. The company will also offer more hardware products in late 2016. The company’s overseas revenue is expected to reach 1.24 trillion yen in 2016.

By Nguyen Huong