Mr Eric Benedetti, Philips Vietnam Country Manager, confirmed with VET's Ha Anh that Philips Vietnam will continue to deliver innovations in Lighting and Healthtech following the adoption of the global company's new strategy.
Royal Philips has just announced it will transform into two focused companies. Can you tell us more about this strategy? How will it affect Philips’ operations in Vietnam?
On September 23 we made the historic announcement that Philips is to transform into two strong and focused companies: one focused on Lighting solutions and the other on HealthTech. The company in Lighting solutions will target attractive opportunities in lighting, building on Philips’ market leadership in LED lamps, luminaires, and connected lighting systems and services, while the company in HealthTech, combining Healthcare and Consumer Lifestyle, will enable Philips to capitalise on the convergence of professional healthcare and consumer end-markets across the health continuum, from healthy living and prevention to diagnosis, treatment, recovery and home care. This will allow us to hone our innovation strengths in two exciting and growing markets.
In Vietnam these changes will not have any immediate impact on our business plans and working processes with our business partners and our customers. It will take Royal Philips about 12 to 18 months to reorganise the business and Philips Vietnam will follow the new Operating Model afterwards.
How will Philips Vietnam materialise this new strategy? What innovations are to come?
In relation to the company’s strategic repositioning, Philips is starting the process for its Lighting solutions and HealthTech business. More information on this will follow in the course of 2015.
The transformation of Philips will ultimately allow us to remain true to the power of our brand and proud heritage of innovation. Innovation and the Philips brand will be at the core of the two new companies. In Vietnam we will continue to deliver innovations that matter to people. Philips has a number of innovations in Vietnam. In Lighting, Philips has widely brought energy saving lighting products to consumers and contributed to many large-scale lighting projects in the country, including streetlights and lighting for ports, buildings, hotels, restaurants and factories, such as Dragon Bridge in Da Nang, the Pullman Hotel, Ba Na Hills, and Tan Hiep Phat’s factory in Ha Nam, among others. In healthcare, Philips is recognised as one of the market leaders in MRI, X-ray, CT, ultrasound, and patient monitoring. In Consumer Lifestyle we are leading a number of innovations in garment care, personal care, and kitchen appliances, helping to improve the quality of people’s lives.
Are there concrete business targets, such as revenue, growth, and tax duties, for Philips Vietnam in 2015 and subsequent years? How can local authorities, and customers, add value to the company’s targets?
Energy efficient lighting is an opportunity for Vietnam and will equally benefit its population as well as its future competitiveness. Philips Vietnam has differentiated itself through energy efficient products and solutions that help us enable customers to create amazing new lighting experiences and to achieve outstanding business outcomes, while saving up to 80 per cent on energy compared to traditional light bulbs. In the coming year we will continue to innovate in the LED lamp and luminaire ranges, taking advantage of the transition from conventional lighting to LED and gaining more market share. We are expecting authorities to consider and accept the suggested revised tariff classification and tax rate for LED imports, to further accelerate the adoption of sustainable lighting solutions.
Philips Vietnam has also hosted some liveable cities roundtables and the Healthcare Non Communicable Diseases Network, bringing together leading experts from across various sectors to debate and share experiences on how sustainable lighting solutions can contribute to making a liveable city and on how to lessen the impact of non-communicable diseases in Vietnam, which account for 65 per cent of global deaths.
Philips is widely known in the Netherlands and elsewhere for its corporate social responsibility (CSR) activities. What type of CSR projects has the company engaged in in Vietnam?
Philips undertakes a wide range of CSR projects, such as solar-powered LED “Community Life Centers” across Africa and similar projects in Brazil, bringing light to community centres and play areas in the favelas.
In Vietnam, Philips has initiated and developed a number of projects to improve lives in communities. In 2009 we kicked off “A journey for a power-saving purpose” and we have sponsored more than 60,000 light bulbs for rural households in 19 provinces for five years. From 2011-2013 Philips brought its SimplyHealthy@Schools, a global community programme, to Vietnam. After three years this meaningful programme has reached nearly 2,400 students in eight schools nationwide. Every year the SimplyHealthy@Schools project aims to address one of the major issues in health and well-being as well as replace entire lighting systems at underprivileged schools.
In June this year Philips Vietnam provided a gift of Philips LED solar powered lighting to the village of Thanh Son. The “Philips Gift of Light” project improved the lives of 288 households who have been in darkness for 30 years. Such meaningful projects have contributed to our commitment to make the world healthier and more sustainable through our innovations.