We are considering setting up a business in industrial automation and control system in Vietnam. We would like to learn whether we should be a System Integrator or Manufacturer's Rep for some famous brand. And what is the requirement then? If anybody has the experience, please kindly share.

Best regards,
Pham Duc Hai
Sales Manager
Hai SOn Company Ltd
www.haison.com.vn

 

I'd be inclined to try and rep Siemens or Schneider. They probably have the most coverage in your neck of the woods, and its unlikely you will see much US based stuff like AB anytime soon. One thing about being a rep for either
of these organizations is that I have heard there are some pretty serious committments they require, both financially and technically.

You could set up an SI business on the side as well. That way you funnel the projects into your SI business, while getting the benefits of being the local rep for one of the big names.

I don't know quite what the business climate is like in VN these days but its near impossible for a Western company to put any money into such a venture in some places as the legal system to enforce contracts is just unworkable, as is the capability to bring profits home, so its a sure loser for them. They will probably want all the funds including the cost of inventory to be put up by someone else, unless the opportunity is just to big to miss out on, and I can't imagine it is.

Bob Peterson

 

Sir,

We are a development company in the field of automation. We suggest you can work with CAN based CPUs from Selectron Switzerland. We are working with this systems since 1998 and extremely comfortable both in terms of integration and Price.

Balaji
ICON Technologies Pvt Ltd
Director

 

It depends a lot on the market in vietnam. i mean, what is the availble there now in automation? If the market is pretty bare, i think you would be better off choosing a big name and being a rep for them. Or rather, you should contact the big guys and tell them you want to be thier rep in the area. You can probably get them to train you and give you good prices.

On the other hand, if all of the big names are already represented, I would lean towards being a system integrator and installing all of thier products.

If there is some competition, but there are still some good products that are unrepresented, well that would get to be a tougher decision. You could start out being an integrator who uses all products to earn your own reputation, then later marry up with a supplier. Or you could see if the big supplier without a foothold in the area was willing to help you drum up some business just to open up this new market.


I work for an integrator in the US. We purposely avoid getting married to any one brand of PLC. from what I've seen here, doing that is like signing your own death warrant.

We have manufacturers reps approaching us all the time looking for exclusive rep agreements, and we turn them all down. They do not require a big financial commitment or anything like that. In fact, they are usually willing to invest in us, in the form of training, deep price cuts, and beating the bushes to throw business our way. All they want is a promise that we will use only thier products. The problem is, every few years, the customers want a different product, and if we are not able to bid and do a job with those other products, we would get left out in the cold.

I've seen it happen with a lot of our so called competition in this area. They get in bed with a manufacturer to outbid us on a few projects, then a year later, all the projects come out with different stuff spec'd, and they become a non factor.

But thats why i lean towards being an integrator who uses everyone products. The market realities may be different in vietnam.

good luck
-jeff

 

Thank you all for your invaluable feedbacks from my last message have helped Hai Son to be a leader in automation and control market in Vietnam!

 

Thank you all for your valuable input.

After 5 years, we are now successful in this business. This is how our company working now.

We are doing engineering design and technical services for automation and control projects in Vietnam in oil and gas, power and process industries. Recently, we did an upgrade project for a tank farm automation system in Petechim Nhabe with Honeywell as I have just introduced to you. Also, we are working with Petrolimex Gas to upgrade their existing system including Rockwell/ Allen-Bradley PLC and Varec FuelsManager software. Attached is our company brief overview.

Haison is now the distributor for Citect (SCADA systems), Honeywell Process Solution (DCS and Tankfarm Automation System), SAMSON (Control valves), STAHL (Explosion Proof Control Panels, Lightings, Automation Systems, etc), Varec (Tank Gauging and Inventory Management), among some other good companies.

Our products details are available at our website: http://www.haison.com.vn/Eng/products.htm We have the capability to support our products and provide technical services.

We must go on 2 feet to be able to survive in this highly competitive and difficult market!

Best regards,

Pham Duc Hai
Director
Hai Son Company Ltd
A20 K34 Tran Thien Chanh Street,
District 10, Hochiminh City, Vietnam
Tel: +84 8 8630919
Fax:+84 8 8630920
Mobile: +84 903645530
Skype: haisoncompany
Email: [email protected]
Website: www.haison.com.vn