1.What are the milestone projects you are participating in Vietnam at this time and scope of these projects?
Masan Nui Phao mining project, commencing production in the first half of 2013, about $400M project with more than 90% of the electrical equipment from ABB.Formosa Ha Tinh Steel project, start-up of first areas in 2014, $10B project, delivery of electrical sub-stations with GIS switchgear for approximately $50M.
2.Does ABB in Vietnam alone handle these projects or do you get cross border support from ABB in other countries?
Each project is different in scope and requirements and the way the end user wants to manage the project. For our two present major projects we have different ways of delivery.The Masan Nui Phao Mining project had an EP company that did most of design engineering and ABB executed the interconnection engineering and this we did in Vietnam.For the Formosa Ha Tinh Steel project, there is no EPC company, ABB is responsible for engineering and delivery. For this delivery the resources of Vietnam, Taiwan and Switzerland will be used.
3.What do you think are challenges & opportunities for ABB in the local market? Can you also share new market opportunities?
From global perspective, Vietnam still has strong GDP growth and attracts investments. We see big projects from Formosa, Samsung, Nokia and even our own company ABB. Japan, Korea and Taiwan and other countries are actively investing in Vietnam. There are a lot of opportunities for us in the local market. Challenges are usually with tight finance, delays in approvals, unclear regulations, and not suitable skilled resources.Balancing out the opportunities and challenges, industries such as FMCG, large scale projects, hi-tech manufacturing are still attractive.
4. What are the focus areas for your plans in VN?
Focus areas are to increase our share of the infrastructure spend by increasing local sourcing.We must increase Asia 4 Asia business, whereby we use Asia products and solutions as far as possible.Expand our factories so that we can increase our output both for local consumption and export to >$150M per year.
5. Can you share with us major actions for ABB to increase market share in Vietnam?
Growth in Vietnam is happening on two fronts, domestic investors and international investors. In order to grow in Vietnam, companies must have a business model to address all investors. Locally, ABB is positioned to do this with a growing network of local distributors, licensed partners, local factories and strong service and engineering support. For international investors, we have both the ABB support within Vietnam as well as outside Vietnam to support customers based anywhere in the world.