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Demand for elevators heading upwards

Released at: 09:59, 23/03/2019

Demand for elevators heading upwards

Photos: Toshiba

Mr. Nguyen Tran Dinh Khoi, Chief Executive Officer / General Director of the Toshiba Elevator (Vietnam) Limited Liability Company, and Mr. Mitsuya Amano, Vice General Director, tell VET about the prospects for the country's elevator market.

by Minh Do

Mr. Mitsuya Amano, Vice General Director

How would you comment on the prospects for Vietnam’s elevator market?

Our market research shows trending demand for elevators in Vietnam, and we foresee strong and continuous growth in the sector. Along with growing economies comes infrastructure needs, and Toshiba Elevator (Vietnam) (TELV) was established to fill the gap in the elevator consumption market. We see growth not only in the residential market but also the commercial market, including office buildings and luxury hotels.

The Toshiba Elevator Company (TELC) has built a framework that encompasses all aspects of its elevators, from product and system development to production, installation, adjustment, maintenance, and services, in order to provide customers with the highest quality products and services. Utilizing the comprehensive technological infrastructure developed by the Toshiba Corporation during the more than 140 years since its foundation, we aim to further enhance the world-leading technology and quality that enabled us to develop ultra-high speed elevators, harnessing the full range of Toshiba’s technological innovations.

After nearly five years of operations in Vietnam, what has TELC achieved?

TELC entered Vietnam in 2014 through a partnership with local company the New City Technology Trading Services Co. Ltd (NCE). Since then, NCE and TELC have steadily expanded business operations through sales and marketing activities in Vietnam, mainly in the residential market. In the last five years, our partnership with NCE has enabled us to garner a deep-rooted understanding of the Vietnamese market and tap into their extensive sales channels to foster robust working relations with local customers as well as the Vietnamese community at large.

 Mr. Nguyen Tran Dinh Khoi, Chief Executive Officer / General Director What challenges do you see when operating in Vietnam? Is there fierce competition in the market?

Many businesses face challenges such as understanding the business landscape as well as hiring the right people with the right attitude and aptitude. NCE started business operations in 2006 and has grown a team of highly-skilled engineers through intensive training and onsite experience to offer reliable service quality. TELC’s partnership with NCE since 2014 positions TELV well to meet Vietnam’s urban infrastructure needs.

The volume of high-rise buildings has started to increase in urban areas due to rapid economic growth. The elevator market remains competitive, with foreign and domestic players. As leaders in innovation, we are confident that our key differentiators coupled with local know-how will give us a competitive edge.

How do you plan to expand the brand in Vietnam?

Our strategy is to move from standardization to localization, and offer customized, cutting-edge solutions to our customers to gain a durable competitive edge. Our strategically-placed manufacturing bases will provide flexible solutions for the most effective supply chain for our customers.

TELC will support the management of TELV, but business operations will be mainly executed by local staff. Local staff will receive regular knowledge training and updates directly from Toshiba engineers from Japan. To provide more customized services and support for our customers, we plan to double the number of employees, from the existing team of 60, mainly engineers, in the next three years.

With rapid economic growth, we will target the high-rise and high-speed segments, including high-rise apartments, office buildings, and luxury hotels, by offering quality products. Some of Toshiba’s prominent projects include Tokyo Sky Tree and Taipei 101.

What do you expect to gain when expanding business operations in the market?

We aim to sell more than 200 units per year and achieve a 5 per cent market share, generating revenue of more than JPY1 billion ($9 billion). Other than expanding the brand, corporate social responsibility will also be a focus, with the aim of conducting our business in a socially and environmentally-responsible manner. We hope to work with the local community to deliver meaningful solutions that are sustainable and dynamic for the years to come.

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