ASNOVA Co., Ltd.
[Establishment of Vietnamese corporation] Notice regarding ASNOVA VIETNAM (Securities code: 9223)
ASNOVA Co., Ltd. (headquartered in Nagoya City, Aichi Prefecture, President and CEO Keiji Ueda), which provides rental and sales of wedge-type scaffolding and scaffolding construction, has established a local subsidiary in Ho Chi Minh City, Vietnam.
Background of entering Vietnam
Until now, China’s economic growth has tended to attract attention, but ASEAN countries are attracting new attention. In addition to economic growth, the rich labor force resulting from the youth of the people is very attractive to companies considering overseas expansion. Among them, the average age as of 2019 is 31 years old, which is outstandingly young, and Vietnam, which has the third largest population in ASEAN as of 2020, is attracting particular attention. [Image 1
Vietnam’s GDP growth rate has remained at 6-7% since 2017, and has fallen to 2.9% and 2.5% in 2020 and 2021 due to the impact of the coronavirus. , Vietnam maintains positive growth. In 2022, the Vietnamese government will almost abolish corona-related regulations and prioritize economic growth. As a result, the economic growth rate will recover to 6% in the first half of 2022.
In addition, between 2020 and 2030, an additional 36 million people will join the consumption class (middle class) in Vietnam. At the beginning of 2000, this consumption class accounted for less than 10% of the total population, but it has grown rapidly to about 63% today, and is expected to expand to 75% in the next 10 years. Expected. [Image 2
Ho Chi Minh City, the largest city in Vietnam, where we established a local subsidiary, is located in the center of ASEAN and is expected to increase exchanges with ASEAN countries in the future.
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In Vietnam, where high economic growth is expected, there are various factors such as the expansion of demand for construction such as housing due to the increase in the middle-income class, the resumption of construction work due to the lifting of lockdown, and the change in awareness from purchasing to rental due to the recent surge in material prices. It is predicted that the demand for scaffolding rental will expand greatly.
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In Vietnam, which is highly attractive, we would like to contribute greatly to the economic growth of Vietnam with the know-how and technology of scaffolding rental that we have cultivated so far. [Image 5
At Vetbuild (the largest construction-related exhibition in Ho Chi Minh City) held in Ho Chi Minh City, Vietnam in June 2022, we also exhibited a booth and heard first-hand opinions about wedge-type scaffolding locally. As a result, we received a very high evaluation. [Image 6
Three strengths of ASNOVA
There are three major strengths of ASNOVA when expanding into Vietnam. The first is the scaffolding rental management know-how that we have cultivated over many years in Japan.
The depreciation period for scaffolding is 5 years, but scaffolding can be used for as long as 20 to 30 years if properly managed. In addition, our inventory difference rate is less than 0.002% compared to the industry average of 3%. Taking advantage of this feature, we would like to differentiate ourselves from local rental companies in Vietnam with safety through thorough management, and establish a position that is said to be ASNOVA when it comes to scaffolding rental.
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The second is the amount of equipment for scaffolding.
We have already shipped nearly 1000 tons of scaffolding to Vietnam. We will continue to actively invest in scaffolding and aim for the No. 1 market share in Vietnam.
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The third is the safety and credibility of Japanese products. We have confirmed that the aging wedge-type scaffolding that we transported in test marketing from 2017 has earned a very high degree of trust. Scaffolding made in Vietnam is not of good quality and needs to be replaced every five years. However, the scaffolding that we transported is more than 20 years old, but it is still active and can be used for as long as 20 to 30 years if managed thoroughly. [Image 9
Sales strategy in Vietnam
We currently have three sales strategies in Vietnam.
The first is to raise awareness of wedge-type scaffolding in Vietnam. As mentioned above, the convenience and evaluation of the wedge-type scaffolding made in Japan have been well received. On the other hand, we have not been able to convey the goodness of workability and quality yet. We will enhance the branding of wedge scaffolding and improve name recognition in Vietnam.
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Secondly, in Vietnam, in addition to proposing scaffolding rental, we are thinking about a strategy to get customers to use wedge
scaffolding by staying close to customers and giving advice on scaffolding design and scaffolding construction methods. .
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Finally, Vietnam is putting a lot of effort into attracting offshore development and developing IT human resources, and promoting DX throughout the country. In Japan, it is a common business practice to place orders for scaffolding by telephone or fax, but in Vietnam, orders are placed and placed online from the beginning, and other operations actively adopt digital and IT to improve customer satisfaction.
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Equipment center in Ho Chi Minh City, Vietnam
The Phu My Three Special Industrial Park, which is the candidate site for the store, is located about 60 km from Ho Chi Minh City, is close to the new international airport that is scheduled to be completed in three years, and is an area where development is progressing in the future, so it is very attractive. It’s a great location.
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In addition, since it is located in a vast industrial park, if the amount of scaffolding increases in the future and the center is expanded, it will be possible to expand the center within the same industrial park.
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Future Prospects of ASNOVA VIETNAM
Our customers and sales channels in Vietnam are mainly local construction companies, and we have no plans to rent scaffolding only to Japanese companies.
As in Japan, we would like to increase the number of customers even if the scale is small, and build a business model that distributes risk. In addition, we would like to use the success of Vietnam as a foothold to expand into neighboring ASEAN countries. Scaffold rental is still developing in ASEAN, and we would like to spread ASNOVA’s rental know-how cultivated in Japan to the world.
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Lastly, this scaffolding rental business is a so-called circulation business that shares scaffolding, and we believe that it will be a business that will attract more attention in the future.
In order to deal with social issues such as climate change and resource shortages, it is becoming increasingly necessary to shift to a business model in which people share things.
For this reason, we would like to solve these social issues and contribute to the realization of a recycling-oriented society by popularizing this scaffolding rental in Vietnam.
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[Video] Establishment of a subsidiary in Vietnam
[Video 2: https://prtimes.jp/api/movieim.php?url=www.youtube.com/watch?v=ZwABU2rQOJw] [ASNOVA Co., Ltd. Company Profile]
Company name: ASNOVA Co., Ltd.
ASNOVA Co., Ltd.
Head office location: 〒453-6126
Global Gate 26th Floor, 4-60-12 Hiraike-cho, Nakamura-ku, Nagoya City, Aichi Prefecture
Phone number: 052‐589‐1848
Fax number: 052‐589‐1849
Established: December 24, 2013
Capital: 220 million yen
Number of employees: 117 *As of March 2022
Representative: Keiji Ueda
Construction Business Permit: Minister of Land, Infrastructure, Transport and Tourism Permit (Han-26) No. 25548
Possession license: Antique dealer license issued by Aichi Prefecture Public Safety Commission No. 541051804100
Details about this release:
https://prtimes.jp/main/html/rd/p/000000009.000099284.html