Meiden Asia Pte. Ltd., (Meiden Asia), a wholly-owned subsidiary of Meiden Corporation (Meiden), has boosted its stake in Vietstar Industry Corporation, a Vietnamese switchgear manufacturer, to more than two-thirds. Vietstar subsequently changed its name to Vietstar Meiden Corporation.

In 2020, Meiden Asia acquired a 44.8-percent stake in Vietstar with the aim of entering Vietnam’s electric power industry market and expanding its business operations in the Mekong Region. Meiden Asia has now boosted its stake in Vietstar to 69.7 percent through a capital increase.

Vietnam’s economy is performing strongly, relative even to emerging Asian economies. In fact, the country has maintained growth in gross domestic product despite the fallouts of the COVID-19 pandemic. The nation is expected to continue making robust investment in infrastructure, including capital investment in electric power to meet the increasing demand for electricity.

Vietstar, headquartered in Ho Chi Minh City, manufactures and sells mainly low- and medium-voltage switchgears, and is renowned as a leading manufacturer, boasting strong distribution channels with domestic power utility companies and the private sector. The Meiden Group will use the latest capital increase and name change as a springboard to establish its presence in the Vietnamese electric power market and capitalize on Vietstar’s distribution channels and production capabilities. The Group also will make Vietstar Meiden a key production hub in the Mekong Region and strengthen its value chain, or full range of activities needed to supply better products, in the area.

Going forward, the Meiden Group will expand its T&D business in ASEAN (Association of Southeast Asian Nations) member countries, including Vietnam.

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Corporate Communications & PR Promotion Division
e-mail: kouhou@mb.meidensha.co.jp