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FOR IMMEDIATE RELEASE No.2606

Mitsubishi Electric Establishes Sales Company in Vietnam

Aims to develop sales of air conditioners, home appliances and FA products

Tokyo, June 14, 2011 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has established Mitsubishi Electric Vietnam Company Limited to coordinate sales of air-conditioning systems and home appliances and, from next year, factory automation (FA) products. Annual sales of 8 billion yen (approximately 95 million USD) are targeted by the fiscal year ending in March 2016.
Saigon Trade Center, location of Mitsubishi Electric Vietnam

Saigon Trade Center, location of Mitsubishi Electric Vietnam

Following the global financial crisis, Vietnam has maintained high levels of GDP growth, including a rate of 5.3% in 2009. Further expansion is expected in 2011 onward. 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 for urban development.


Until now, Mitsubishi Electric primarily conducted sales in Vietnam indirectly through distributors, but due to Vietnam's remarkable growth prospects, Mitsubishi Electric 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 strengthen distributor partnerships and build direct sales channels, and consider the establishment of branch offices in Hanoi and other locations in line with sales expansion.

New Company Outline

Name Mitsubishi Electric Vietnam Company Limited
Head Office Ho Chi Minh City
Managing Director Kunihiko Seki
Paid-in capital 8.1 million US dollars (approximately 650 million yen)
Ownership Mitsubishi Electric Asia Pte. Ltd. (based in Singapore): 70%
Mitsubishi Electric Corporation: 30%
Registration June 6, 2011
Start of operations (plan) July 1, 2011
Employees Approximately 40 (from fiscal year starting April 2012)

Business

1. Sales of air-conditioning systems, including residential and commercial air-conditioners
Home air-conditioner penetration in Vietnam remained low at 3.1% in the fiscal year ending March 2010 (according to company research), but increasing demand is expected. Mitsubishi Electric Vietnam will market value-added models offering easy cleaning and other features aimed at high- and middle-income earners. The demand for commercial air-conditioners also is rising due to their increased use in office buildings, hotels and other structures. Mitsubishi Electric Vietnam will market product lineups and systems that meet diverse customer needs, including "City Multi" air-conditioners that feature high energy efficiency, to expand sales.
2. Sales of home appliances, including refrigerators and fans
A wide range of two- and three-door refrigerator models will be marketed to middle- and high-income households. Fans offerings will focus on value-added models that feature low noise and superior safety & design.
3. FA products (in the fiscal year ending March 2013)
Mitsubishi Electric Vietnam will establish its own FA sales division for marketing and sales network development in the fiscal year ending March 2013.

Mitsubishi Electric Presence in Vietnam

Melco Elevator Vietnam Co., Ltd. (Ho Chi Minh City)
-Sales, installation and maintenance of elevators and escalators
-20% owned by Mitsubishi Electric Corporation and 10% owned by other Mitsubishi Electric Group firm
Vietnam Representative Office (Ho Chi Minh City)
Mitsubishi Electric Vietnam Company Limited (Ho Chi Minh City)

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