Panasonic heads up Japanese production movements

Panasonic is among the first Japanese investors to relocate their activities to Vietnam in the context that multinational corporations are considering to restructure their global manufacturing.

Attracting these relocated projects will be factors that reaffirm Vietnam as a safe and open destination. Marukawa Yoichi, general director of Panasonic Vietnam, talked about the plan to move its facility from Thailand to Vietnam.

1494p6 panasonic heads up japanese production movements
Marukawa Yoichi, general director of Panasonic Vietnam

What has Panasonic done so far to relocate the manufacturing facility from Thailand to Vietnam?

This transfer is a part of global restructuring of our manufacturing. Producing and supplying products from Vietnam to individual markets will be more advantageous than continuing production in Thailand.

As of now, Panasonic has poured $243 million in eight companies in Vietnam, five of which are manufacturing companies located in Hanoi’s Dong Anh district, Hung Yen, Ho Chi Minh City, and Binh Duong.

According to the relocation plan, the large-capacity refrigerator manufacturing line will be moved to Panasonic Appliance Vietnam in Dong Anh, and the large-capacity washing machine with vertical door manufacturing line will be moved to Hung Yen Branch of Panasonic Appliance Vietnam. Actual relocation will be started soon.

Panasonic said that it will take advantage of existing facilities in Dong Anh and Hung Yen province to serve for its expansion plan. How does Panasonic achieve this?

In the beginning, Panasonic expects to take advantages of the existing factories and manufacturing facilities in Dong Anh district and Hung Yen, through improving the productivity and capacity of existing production lines.

Depending on the business situation, Panasonic may have to plan further expansion of our factory and manufacturing capacity in the future.

Thailand is considered to have advantages in terms of supporting industries, so why did the company still decide on Vietnam?

 

In fact, supporting industries are one of the important factors for our manufacturing. But it is not only one reason. Vietnam has a lot of advantages. Also, Vietnam is one of the most high-potential markets in the ASEAN, so that must affect our decision.

Besides that, the supporting industries in Vietnam have been improved recently. Amid the movement of global factories and investment to Vietnam, we think the country is in a perfect position to boost its capabilities of supporting industries, along with improving logistics capabilities.

We think that despite challenges, there are also many opportunities for local suppliers to grow and catch up market demand.

The localisation ratio at Panasonic Vietnam Group is approximately 30 per cent. We cannot disclose the number of local suppliers, but we can say that we have increased our localisation ratio in recent years, and we will try our best with the local working group and suppliers to strengthen capacity of Vietnam’s supporting industries.

Does Panasonic’s relocation plan from Thailand involve support from the $2.23 billion package offered by the Japanese government to back up Japanese businesses in expanding their supply chain outside of China?

This transfer is a part of global restructuring of our manufacturing to provide more competitive products to potential markets, and is not related to COVID-19.

On the other hand, the purpose of monetary support which the Japanese government announced is to enhance supply chains to be ready for global crisis such as the current pandemic. So, our decision and direction is not directly related to the government policy in this case. VIR

Kim Oanh

Panasonic to move Thai-based production to Vietnam

Panasonic to move Thai-based production to Vietnam

Japanese appliance-maker Panasonic on May 21 said that next year it will move its Thai-based production of refrigerators and washing machines to Vietnam, laying off some 800 workers.

Is Vietnam ready to receive new FDI wave after Covid-19?

Is Vietnam ready to receive new FDI wave after Covid-19?

Prof Nguyen Mai, an expert on FDI, and chair of the Vietnam Association of Foreign Invested Enterprises (VAFIE), pointed out three problems in the picture of FDI in Vietnam.

 
 

Other News

.
Petrolimex pushes for PGBank-HDBank merger before Aug 31
Petrolimex pushes for PGBank-HDBank merger before Aug 31
BUSINESSicon  27/06/2020 

Petrolimex, which holds a 40% stake in the Petrolimex Group Commercial Bank (PGBank), sought to complete the merger between PGBank and the HCMC Development Bank before August 31, said the Vnexpress website.

Coca-Cola suspends social media advertising despite Facebook changes
Coca-Cola suspends social media advertising despite Facebook changes
BUSINESSicon  27/06/2020 

The company condemns racism and seeks more accountability from Facebook and other platforms.

Hanoi attracts US$17.6 billion for 229 projects
Hanoi attracts US$17.6 billion for 229 projects
BUSINESSicon  27/06/2020 

Hanoi is going to present investment certificates for 229 projects with a total value of US$17.6 billion and sign 38 memoranda of understanding worth a combined US$28.6 billion, according to the Tuoi Tre Online website.

Vietnam prepares to resume international flights
Vietnam prepares to resume international flights
BUSINESSicon  27/06/2020 

It is still unclear when Vietnam will reactivate international flights and reopen its market to foreign travelers, but agencies and travel firms all are making hectic preparations.

Banks’ support desired for mobile payments
Banks’ support desired for mobile payments
BUSINESSicon  26/06/2020 

New approaches, especially regarding activities of banks, are required to boost the reach of mobile money agents and expand financial inclusion in Vietnam.

Authorities get to grips with new bad debt mountain
Authorities get to grips with new bad debt mountain
BUSINESSicon  27/06/2020 

A spike in the amount of bad loans sitting in banks’ books has triggered Vietnamese authorities to seek new paths to recovery,

Debt limit to be adhered to despite bumps in road
Debt limit to be adhered to despite bumps in road
BUSINESSicon  26/06/2020 

In spite of a dent in state budget revenue and a rise in spending this year causing a big fiscal deficit, the government will be able to retain the country’s public debt situation, ensuring national financial security.

Coronavirus: Qantas to axe 6,000 jobs due to pandemic
Coronavirus: Qantas to axe 6,000 jobs due to pandemic
BUSINESSicon  26/06/2020 

The airline says the collapse in billions of dollars of travel revenue means it has "little choice".

Bayer to pay $10.9bn to settle weedkiller cancer claims
Bayer to pay $10.9bn to settle weedkiller cancer claims
BUSINESSicon  26/06/2020 

The chemical giant is settling almost 100,000 US lawsuits from users of its popular Roundup herbicide.

Olympus quits camera business after 84 years
Olympus quits camera business after 84 years
BUSINESSicon  26/06/2020 

Once a huge camera-maker, it is looking to carve off that part of its business and focus elsewhere.

COVID-19-induced uncertainty continues to drag on emerging East Asian bonds
COVID-19-induced uncertainty continues to drag on emerging East Asian bonds
BUSINESSicon  26/06/2020 

The coronavirus (COVID-19) pandemic continues to drag on local currency bond markets in emerging East Asia, including Viet Nam, as investment sentiment globally and in the region wane and containment measures limit economic activity.

Finance ministry says public investment funds borrowed from abroad must be disbursed quicker
Finance ministry says public investment funds borrowed from abroad must be disbursed quicker
BUSINESSicon  26/06/2020 

Loans borrowed from abroad for public investment must be disbursed quicker if Vietnam is to recover economically from the impacts of the coronavirus pandemic, according to the Ministry of Finance.

VEPR urges tax policies for FDI to be revised to prevent tax avoidance and evasion
VEPR urges tax policies for FDI to be revised to prevent tax avoidance and evasion
BUSINESSicon  26/06/2020 

Vietnam needs to revise tax and land policies for foreign direct investment (FDI) companies to ensure a level playing field for businesses.

Process supervision can end licence limbo
Process supervision can end licence limbo
BUSINESSicon  26/06/2020 

Along with luring in new foreign investment inflows, one of the major tasks for the government is to tackle oversights in regards to foreign-invested projects without construction licences.

Vietnam's logistics service industry ready for opportunities from EVFTA
Vietnam's logistics service industry ready for opportunities from EVFTA
BUSINESSicon  26/06/2020 

Vietnam’s logistics service industry is preparing infrastructure and techniques to grasp opportunities from the Europe-Vietnam Free Trade Agreement (EVFTA) to attract foreign investors with a wave of factories.

Vietnam Airlines to buy more aircraft despite big losses
Vietnam Airlines to buy more aircraft despite big losses
BUSINESSicon  26/06/2020 

The national flag air carrier is still moving ahead with its plan to buy 50 narrow-body aircraft, though it has reported a loss of VND2.6 trillion in Q1.

Vietnam's footwear firms forced to lay off workers due to Covid-19
Vietnam's footwear firms forced to lay off workers due to Covid-19
BUSINESSicon  26/06/2020 

The coronavirus pandemic has left tremendous impact on Vietnam's footwear industry, with the lack of production orders and the consequent drop in exports forcing them to lay off employees. 

PM approves suspension of Bac Van Phong SEZ plan
PM approves suspension of Bac Van Phong SEZ plan
BUSINESSicon  25/06/2020 

PM Nguyen Xuan Phuc has approved the suspension of a master plan to develop the Bac Van Phong special economic zone in Khanh Hoa Province until the National Assembly agrees to pass the law on special administrative and economic zones.

Orientations put Hanoi onto investment radar
Orientations put Hanoi onto investment radar
BUSINESSicon  25/06/2020 

Amidst the global trend of investment shifts, Hanoi is betting on new orientations and solutions to increase its appeal, expecting to open opportunities for international investors to venture further afield.

EVFTA promises an enhanced Vietnam
EVFTA promises an enhanced Vietnam
FEATUREicon  25/06/2020 

The National Assembly has passed the EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement, ushering in a new economic, trade, and investment co-operation outlook for both Vietnam and the EU.

 
 
 
Leave your comment on an article

OR QUICK LOGIN