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Mitsubishi Electric establishes subsidiary in Vietnam

MITSUBISHI Electric has formed a subsidiary company in Vietnam to coordinate sales of air conditioning systems and home appliances.
Previously Mitsubishi Electric has focused on sales in Vietnam through distributors, however the company is now positioning the country as a priority market and has decided to establish a local company to coordinate sales. Mitsubishi Electric Vietnam will act as a base to improve distributor partnerships and build direct sales expansion with the establishment of branch offices across the region.

Vietnam has maintained high levels of GDP growth, including a rate of 5.3 per cent in 2009 in spite of the global financial crisis. Further expansion is expected in 2011 onward. Mitsubishi target annual sales of 8 billion yen (approximately 95 million USD) by the fiscal year ending in March 2016.

The growth in Vietnam is largely due to rising living standards, government-led energy and rail infrastructure construction and a large number of major projects, such as housing developments. Increasing demand is expected for home appliances and electrical equipment.

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