The household appliance industry in Vietnam has great potential, but fierce competition is expected to occur among producers, distributors and retailers (Photo: vietnamnet.vn) HCM City (VNA) - The householdappliance industry in Vietnam has great potential, but fierce competition isexpected to occur among producers, distributors and retailers.
According to the Ministry of Industry andTrade, spending for household appliances is estimated to take 9 percent oftotal private spending.
The industry ranks fourth of 11 majorcommodities, with yearly turnover of 12.5 – 13 billion USD and annual growth of10 percent.
The ministry expects that a big proportionof young people will lead to a strong rise in purchase of household appliances.
The spending from consumers aged 18 – 45represents 57 – 60 percent of total market, the ministry said.
At the same time, per capita income is over2,000 USD per year, and demand for quality and models has also increased.
Furthermore, more people are buyingmade-in-Vietnam goods.
Local brand names like Happy Cook,Sunhouse, Son Ha, Tan A and Dien Quang represent 85 – 95 percent of marketshare in their categories thanks to good quality, affordable prices andwide-range distribution systems.
At the same time, rural markets have movedfrom hand-made and simple household appliances to popular Vietnamese brandnames.
According to a market survey conducted byNielsen, shopping growth in rural areas increased 12.4 percent in the firstquarter of 2017 while urban areas only reached 6.5 percent.
Ordinary commodities grew 40 percent andluxury items rose 38.5 percent.
Kangaroo ranked first in the market with ahigh-quality water purifying machine, at a turnover of 2 trillion VND (89million USD) in 2016.
Sunhouse followed with a turnover of 1.8trillion VND (80 million USD) and took 10 percent market share during the2010-2016 period. The company reached a stable high growth of 30 percent eachyear.
At least 80 percent of market share belongsto local brand names, while the remaining are foreign brands.
However, most local enterprises are mostlyjoint-ventures with Chinese. In the last two years, new names like VnTech,AsanZo and Korihome have become competitive.
But foreign competitors from Thailand andCambodia will have an advantage in the future when import taxes are cut basedon regional trade agreements.
International brand names from Japan,Germany, Taiwan (China) and the Republic of Korea have also strengthened theirentry into the country through imports, distribution and retail; or M&As toquickly control the market.
For example, local company Sunhouse withsix factories and a full distribution system is seeking partners, citing theM&A between Sweden-based Electrolux, Chinese Haier, and Japanese Muji andZojirushi.
“Sunhouse is looking for a multinationalpartner to expand our international markets, improve our company governance,and transfer technologies,” Nguyen Xuan Phu, chairman of the Sunhouse Group’smanagement board, was quoted as saying in Thoi bao Kinh doanh (Business Times)newspaper. - VNA
According to the Ministry of Industry andTrade, spending for household appliances is estimated to take 9 percent oftotal private spending.
The industry ranks fourth of 11 majorcommodities, with yearly turnover of 12.5 – 13 billion USD and annual growth of10 percent.
The ministry expects that a big proportionof young people will lead to a strong rise in purchase of household appliances.
The spending from consumers aged 18 – 45represents 57 – 60 percent of total market, the ministry said.
At the same time, per capita income is over2,000 USD per year, and demand for quality and models has also increased.
Furthermore, more people are buyingmade-in-Vietnam goods.
Local brand names like Happy Cook,Sunhouse, Son Ha, Tan A and Dien Quang represent 85 – 95 percent of marketshare in their categories thanks to good quality, affordable prices andwide-range distribution systems.
At the same time, rural markets have movedfrom hand-made and simple household appliances to popular Vietnamese brandnames.
According to a market survey conducted byNielsen, shopping growth in rural areas increased 12.4 percent in the firstquarter of 2017 while urban areas only reached 6.5 percent.
Ordinary commodities grew 40 percent andluxury items rose 38.5 percent.
Kangaroo ranked first in the market with ahigh-quality water purifying machine, at a turnover of 2 trillion VND (89million USD) in 2016.
Sunhouse followed with a turnover of 1.8trillion VND (80 million USD) and took 10 percent market share during the2010-2016 period. The company reached a stable high growth of 30 percent eachyear.
At least 80 percent of market share belongsto local brand names, while the remaining are foreign brands.
However, most local enterprises are mostlyjoint-ventures with Chinese. In the last two years, new names like VnTech,AsanZo and Korihome have become competitive.
But foreign competitors from Thailand andCambodia will have an advantage in the future when import taxes are cut basedon regional trade agreements.
International brand names from Japan,Germany, Taiwan (China) and the Republic of Korea have also strengthened theirentry into the country through imports, distribution and retail; or M&As toquickly control the market.
For example, local company Sunhouse withsix factories and a full distribution system is seeking partners, citing theM&A between Sweden-based Electrolux, Chinese Haier, and Japanese Muji andZojirushi.
“Sunhouse is looking for a multinationalpartner to expand our international markets, improve our company governance,and transfer technologies,” Nguyen Xuan Phu, chairman of the Sunhouse Group’smanagement board, was quoted as saying in Thoi bao Kinh doanh (Business Times)newspaper. - VNA
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