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Newsletter "SEI NEWS" 2011

Home > Company Information > SEI WORLD > Back number > Vol.409

[Newsletter "SEI NEWS" Vol.409]

Sumitomo Electric Group's Global Base: Vietnam

Vietnam has a rapidly increasing number of Japanese companies operating locally against the backdrop of growing demand for automobiles and electronic products in China and Southeast Asia. The Sumitomo Electric Group has also opened manufacturing facilities related to these products to meet local demand in Vietnam and to optimize our manufacturing systems in which operations are efficiently divided among older and newer production centers in various countries.

Vietnam's Virtues that Attract Businesses from around the World

China, once nicknamed "the world's factory," is slowly shifting to a local-production-for-local-consumption manufacturing model, mainly due to a labor shortage that has become conspicuous in recent years and the subsequent rise in wages. As a result, India and Vietnam are expected to replace China as the world's factories. Companies in Japan and other countries are focusing their attention particularly on Vietnam for the following reasons:

 Tidbit

An expat's experience of Vietnam: Motorbikes swarming through the streets

Motorbikes are Vietnamese people's main means of transportation. Every morning and evening, traffic jams occur, with motorbikes filling up both sides of two-lane streets. Motorbikes are so indispensable in Vietnamese daily life that sometimes you see a family of 4 or 5 persons or a voluminous item, such as a large electric appliance, being transported on a single motorbike. Hanoi, Vietnam's capital, is a city with numerous lakes and rich greenery. The city, also called the "capital of water," has a beautiful townscape reminiscent of the French colonial era. It is an interesting experience to enjoy the Hanoi scenery while deepening your understanding of Vietnam's history and culture in a vivacious atmosphere full of motorbike noises and lively people.

 

Sumitomo Electric Group's Vietnam Operations: Brief History

The Sumitomo Electric Group is accelerating its business operations in Vietnam, which commenced in 1996 with SUMI-HANEL Wiring Systems Co., Ltd. (SHWS). Since then, a total of nine Group companies have been established, including some manufacturing automotive wiring harnesses and electronics-related products and some non-consolidated subsidiaries. By next spring, the second manufacturing facilities of Sumidenso Vietnam Co., Ltd. (SDVN) and Sumiden Vietnam Automotive Wire Co., Ltd. (SVAW) are expected to commence operations.

 
1996 SUMI-HANEL Wiring Systems Co., Ltd. (abbreviation: SHWS) established
2003 SD Vietnam Industries Ltd. (abbreviation: SDV) established
2004 Sumidenso Vietnam Co., Ltd. (abbreviation: SDVN) established
2005 Nissin Electric Vietnam Co., Ltd. established
2006 Sumidenso Vietnam Automotive Wire Co., Ltd. (abbreviation: SVAW) established
2006 Sumitomo Electric Interconnect Products (Vietnam), Ltd. (abbreviation: SEPV) established
2008 Sumi Vietnam Wiring Systems Co., Ltd. (abbreviation: SVWS) established
2008 SEI Consulting Vietnam Co., Ltd. established
2010 SEWS-Components Vietnam Co., Ltd. (abbreviation: SEWS-CV) established
2011 SDVN's second plant (Ninh-Giang Plant) scheduled to commence operations
2012 SVAW's second plant (Plant No.2) scheduled to commence operations
 

SVAW社

SEPV社

 
Wiring Harnesses for Automobiles

In Vietnam, Sumitomo Electric Group's wiring harnesses are manufactured mainly for Japan, the United States and other areas rather than for the local market. All of the five Group companies in this segment are located near Hanoi with about 13,000 employees in total.

 

Automotive coaxial connectors

Wiring harnesses

 
Electronics

Sumitomo Electric Interconnect Products (Vietnam), Ltd., abbreviated SEPV, was established in September 2006, as Sumitomo Electric Group's first electronics-related manufacturing base in Vietnam. It is a joint production center of rollers for color printers, flexible flat cables, and flexible printed circuits, the latter two being used in electronic and electrical appliances. Taking advantage of the efficiency and synergy resulting from integrating the three business lines, SEPV supplies products that contribute to size and weight reduction and function and performance enhancement of electronic products.

 

Pressurizing rollers for printers

 

Flexible printed circuits

 

Flexible flat cables

 

 Tidbit

Tree-planting and other environmental programs

Tree-planting and other environmental programs

SDVN carries out programs intended to raise employees' environmental awareness, such as work site clean-up and tree-planting on World Environment Day.

Sorting out waste materials

Sorting out waste materials

As part of the company's activities for environmental protection, SDVN donates trash cans that facilitate sorting-out of different types of waste materials, to nearby elementary and secondary schools, and teaches children the importance of the sorting-out practice.

■Vietnam: Basic Information

Name Socialist Republic of Vietnam
Official language Vietnamese
Capital Hanoi
Largest city Ho Chi Minh
Surface area 329,241 km2
Population Approx. 86,930,000
GDP 1,981 trillion dongs (approx. 101.5 billion US dollars)
GDP per capita 1,168 US dollars
Economic growth rate 6.78% (5.32%in 2009)
Inflation rate 11.75% (from previous year; average monthly Consumer Price Index of 2010, year-on-year:9.19%)

(2010 data mainly from the Japanese Ministry of Foreign Affairs website)

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