Automated warehouse system provider Daifuku to open Vietnam sales unit

20, Sep. 2019

HANOI, NNA - Japan’s Daifuku Co. will start business at its newly established subsidiary in Vietnam on Oct. 1 to sell and install material handling systems as well as to provide after-sales services, capitalizing on the growing demand for automation in the fast-growing Southeast Asian country.

The subsidiary, Daifuku Intralogistics Vietnam Co., is wholly owned by the Osaka-based provider of automated warehouse systems with a capital of $450,000, and is located in Ho Chi Minh City, Daifuku said in a statement on Wednesday.

It is due to be staffed by 10 employees and aims to earn 400 million yen ($3.7 million) in sales in the year to March 2021, a spokesman told NNA.

The new company will seek to establish a channel to sell systems for the distribution sector in addition to products, mainly automated storage and retrieval systems, which Daifuku and its Thai subsidiary have been supplying to local manufacturers and Japanese owned companies in Vietnam, the statement said.

“We started sales in Vietnam in 2016 with goods and services provided from Japan and Thailand. Orders, however, have been rising through the concentration of manufacturing sectors,” the spokesman said.

Through the new local subsidiary, Daifuku will sell a wide range of conveying, sorting and picking systems for the distribution sector in Vietnam, according to the statement.

Amid the U.S.-China trade friction, labor-rich Vietnam has become a prime location for companies relocating their manufacturing bases, the statement said. Substantial direct foreign investment in Vietnam has also helped boost wages, resulting in “growing momentum toward automation,” it added.

In Southeast Asia, Daifuku has a subsidiary in Thailand to sell a full range of distribution systems and manufacture conveying systems for automated production lines. Its sales arms now cover five countries in the region: Thailand, Singapore, Malaysia, Indonesia, and Vietnam, according to the company.