Daikin Launches Air Conditioner Plant in Vietnam

May 18, 2018

Hanoi- Japan's Daikin Industries Ltd. has launched operations at its air conditioner plant in a suburb of Hanoi, the capital of Vietnam.

An opening ceremony was held on Friday. The company hopes that annual production of home-use air conditioners at the plant will reach one million units in two years. The products will be sold chiefly in Vietnam.

The launch of the plant is seen drawing attention as a move by a Japanese company to tap into demand in the Southeast Asian nation, where personal spending is expected to rise due to higher incomes backed by a growing economy.

According to the company, the air conditioner penetration rate in Vietnam is expected to rise to 40 pct by 2020 from the current level of around 30 pct.

The major air conditioner maker is seeking to expand its business in the country, which has the population of nearly 94 million, by beefing up not only production but marketing and service operations.

Also by expanding sales to corporate clients, Daikin aims to double its overall sales in Vietnam to 100 billion yen in 2022 from some 50 billion yen in 2017.

The Vietnamese factory, which has state-of-the-art facilities, is also the company's hub for exports to neighboring countries and other regions including Latin America. Daikin also plans to nurture the skills of workers at the plant. Jiji Press