News Releases 2020Meiden to invest in a Vietnamese switchgear manufacturer to enter the nation’s power industry market

Meiden Asia Pte. Ltd.,(Meiden Asia) a wholly-owned subsidiary of Meidensha Corporation (Meiden), signed a contract on Jan. 15, 2020, to acquire a 41-percent stake in Vietstar Industry Corporation, a Vietnamese switchgear manufacturer, with the aim of making the investment a springboard to enter the Vietnamese power industry market and expand its businesses in the Mekong Region. The investment is scheduled to be made at the end of March.
                                         
In its Medium-term Management Plan 2020, Meiden placed the strengthening and expansion of overseas businesses as one of its key targets. In particular, the company is focusing on business growth in ASEAN (Association of Southeast Asian Nations) member countries. Vietnam, which has recorded a high economic growth rate of over 7 percent in recent years, is expected to make a robust investment into infrastructure, especially power infrastructure facilities and equipment, to ensure a stable supply of electricity as the demand for power increases in that nation.

Vietstar, headquartered in Ho Chi Minh City, manufactures and sells mainly low- and medium-voltage switchgears. It is one of top Vietnamese manufacturers of its kind, having strong distribution channels with domestic power utility companies and the private sector.

Meiden Asia’s investment will help fuse Vietstar’s distribution channels and production power with Meiden Group’s product technologies, aimed at making an inroad into the Vietnamese power industry market, mainly the medium-voltage switchgear domain. Moreover, Meiden Asia will try to make Vietstar a production hub in the Mekong Region in the future in order to strengthen its value chain in the ASEAN region.


Outline of Vietstar

 Company name

 Vietstar Industry Corporation

 Representative
 director

 Mr. Phan Van Nien

 Year of founding

 2002

 Amount of sales

 About 1.5 billion yen (FY 2018)

 Business operations

 Manufacturing and sales of low- and medium-voltage switchgears

 No. of employees

 210 (as of the end of 2019)

 Address

 Head office/factory Ho Chi Minh City
 Branches Da Nang, Hanoi


 Vietstar's factory



Meiden’s Director & Senior Managing Executive Officer, Nobuaki Tamaki, center right,
Vietstar’s General Director, Mr. Phan Van Nien, center left, at the signing ceremony on Jan. 15, 2020.


Press contacts:

Public Relations Division
e-mail: kouhou@mb.meidensha.co.jp