Japanese interior materials trader Sangetsu opens Vietnam unit to cater to prime properties
TOKYO, NNA – Japanese interior decorating products trader Sangetsu Corp. launched a Vietnam operation on Wednesday to cater to demand for materials for high-grade buildings.
The move comes as it has been expanding its footholds in China, Singapore and the United States in recent years in its broader efforts to boost business overseas.
The Tokyo and Nagoya-listed trader, which develops wallpapers, carpets, curtains and other upholstery, said Sangetsu Goodrich Vietnam Co. undertakes design and installation work of interiors mainly for prime condominiums and offices as well as hotels via Japanese contractors and real estate developers, spokeswoman Ryoko Shirato told NNA on Tuesday.
The local unit, established on March 4 with a capital of $1 million, is a joint venture between Sangetsu with a 49 percent stake and Goodrich Global Holdings Pte. Ltd., its Singapore subsidiary, with the remaining 51 percent. It took over the Singapore firm in 2017 to beef up operations in the Asia-Pacific region, the Japanese firm said in a statement on Tuesday.
The Vietnam unit based in Ho Chi Minh City will handle carpets and polyvinyl chloride flooring materials among other items imported from Japan, Europe and the United States, she said.
Sangetsu estimates the construction market in Vietnam grew to about 4 trillion yen ($36.8 billion) last year from 3 trillion yen in 2017 as it has seen a rapid increase in the construction of high-rise condos for middle- and high-income classes, she said.
Some of those buildings employ wallpaper rather than painted walls, and the company expects demand growth for such interior materials, she added.
Sangetsu Goodrich Vietnam hopes to post a profit in the business year to March 2024, said the spokeswoman, adding it would expect around several million yen (several million dollars) in sales in the year to March 2025.
In 2016, Sangetsu, headquartered in Nagoya, central Japan, established Sangetsu (Shanghai) Corp., a Chinese sales subsidiary, and acquired a full stake in Koroseal Interior Products Holdings Inc, a U.S. wallpaper maker, the statement said.
The company holds a 70 percent stake in Singapore’s Goodrich Global Holdings, according to its financial statement.