Sanyo DI Solutions Vietnam Corp (SDV), a member of Sanyo Electric Co., officially opened a digital camera factory in the southern province of Dong Nai on September 13. The opening of the facility covering 2.3 hectares in Bien Hoa 2 Industrial Park coincided with the Vietnam visit by Tomoyo Nonaka, Sanyo chairwoman and CEO.
Sanyo DI Solutions is a US$30 million venture between Sanyo Asia Pte Ltd with an 80% stake and Sanyo Sales & Marketing Corp with 20%.
SDV general manager Shigeru Wada said that the new factory would be able to turn out one million units a year, all for export to Japan, the US and Europe through overseas distributors, and that the figure would be scaled up to five million by 2007.
Sanyo’s first digital camera factory in Vietnam, which is seen as a new production base for its regional strategy, will initially concentrate on producing low-cost cameras, which meet Japanese standards.
Most components and chips for Sanyo digital cameras are imported from Sanyo digital camera factories in Indonesia, Japan and China. However, SDV will produce chips in Vietnam next April.
Sanyo now has a main factory producing digital cameras in Japan and subsidiaries in South Korea, Indonesia, and China. The company last year decided to set up one more production base in Vietnam to enjoy lower production costs and diffuse risks. Last year Sanyo produced about 12.8 million products and targets an output of 15 million products this year.
Wada said SDV eyed Vietnam as a new production base for Sanyo digital cameras and that it would develop business in Vietnam into a world leader in terms of quality, production cost and distribution network.
Sanyo digital cameras are not quite popular in Vietnam, but elsewhere in the world, its products under different brands enjoy a market share of 50%, he said.
In 1996, Sanyo Corp set up a US$40 million factory in Vietnam to produce washing machines, refrigerators and recently air-conditioners, through Sanyo Home Appliance (SHA).