Business News
Fuji Xerox Establishes Sales Company in Vietnam to Provide High Value-Added Products and Solutions
Thursday 10. June 2010 - Aiming at Business Expansion in a Rapidly Growing Market
On May 20, Fuji Xerox Co. Ltd. established Fuji Xerox Vietnam Company Limited, a sales company wholly-owned by Fuji Xerox Asia Pacific Pte Ltd. that controls Fuji Xerox’s overall overseas operations . This month, the new company has started operations in Vietnam, one of emerging countries where high economic growth is expected.
Sales in the country are currently handled by local authorized dealers, and managed by Fuji Xerox Asia Pacific’s representative offices with stationed staff members. The establishment of a local subsidiary not only reinforces the activities of the dealers, but also enables direct sales and maintenance services operations, which will promote further business expansion in Vietnam. Fuji Xerox Vietnam plans to realize three times the sales volume of FY2009 by FY2014.
As a result of Vietnam’s accession to the WTO (World Trade Organization) in January 2007, together with its implementation of the policy of opening to foreign investment, the country has been enjoying a rush of incoming foreign corporations over the last few years, and this trend is expect to continue to grow. At the same time, demand for products and services is also rising to levels seen in advanced countries-not only from foreign corporations, but also from many local companies. Fuji Xerox is responsible for meeting such demand with high value-added products, solutions and services.
To date, import and sales operations undertaken by authorized dealers in Vietnam have been mediated by Fuji Xerox Asia Pacific, located in Singapore, through its representative offices in Ho Chi Minh City and Hanoi. However, Article 18 of the Vietnamese Commercial LawNote 1 prohibits these representative offices from directly conducting commercial activities, thus limiting their role to promoting the sales activities of the dealers.
On the other hand, market demands for document management and information security, as well as foreign corporations’ demands for the implementation of solutions available in other countries have been increasing. The establishment of a direct sales structure is to cater such demands from customers who expect even higher value in products and services; from high-performance equipment including full-color devices, together with associated after-sales services, to solutions and outsourcing services.
Vietnamese economic growth, as represented by its gross domestic product, is steadily rising-even in the middle of the global recession-and the country is expected to retain this high growth trend as one of the emerging countries grouped as VISTANote 2, following on after BRICS – Brazil, Russia, India and China-. As its economy expands, the Vietnamese copier market is expected to mark a double-digit average annual growth rate for at least the next five years from FY2009. Leveraging its experience and expertise in direct sales in Japan and the Asia-Pacific region, Fuji Xerox aims at further business expansion by securing a direct sales route through the establishment of a sales company in Vietnam.
Note 1 Article 18 of the Vietnam Commercial Law specifies the obligations of representative offices and prohibits direct profit-making activities by these offices.
Note 2 VISTA indicates the initials of five countries: Vietnam, Indonesia, South Africa, Turkey, and Argentina. These countries are regarded as possessing the right conditions for high economic growth and are seen as the post-BRICs countries. Named by the BRICs Research Institute in November 2006.