 |
| LS Electric's affiliate LS Metal Vina plant in Hai Phong, Vietnam / Korea Times photo by Kim Hyun-bin |
By Kim Hyun-bin
Hanoi, Vietnam ― LS Electric, a leading Korean electric company in Vietnam, is seeking to expand its presence not only in the country but throughout the ASEAN market, according to company officials, Wednesday. The expansion comes as LS Electric Chairman Koo Ja-kyun pushes to increase global market share.
"LS Electric's sustainable growth must make clear that the limitations of the domestic market can only be overcome through the global market, and this must be taken as a key and essential factor. We will have to take the lead in the ASEAN region beyond this," Chairman Koo said.
LS Electric was the first among domestic electric power companies to enter Vietnam in the mid-1990s and successfully secured a sales network in the local electric power market.
 |
| LS Electric Chairman Koo Ja-kyun |
Afterward, in 1997, the company established a corporation in Hanoi, the capital of Vietnam, establishing production bases around the country, including a switchgear production plant.
"LS Electric has been promoting customized marketing and sales activities by establishing partnerships with each administration through a nationwide sales network, centered on the Hanoi corp.," Kwak Soo-hyuk, general director of LS Electric, said.
LS Electric has secured power system production capabilities, such as switchboards, mainly in Hanoi, and is developing locally customized products, and has established a branch in Ho Chi Minh City to establish a nationwide sales network for power systems and power equipment.
LS Electric is making significant progress in Vietnam's electric power market, which is growing by more than 10 percent annually, and the company is also seeking to expand in the electric power system and infrastructure markets.
Last year, LS Electric maintained its No. 1 position in the Vietnamese low-voltage power equipment market with a market share of 45 percent. Although the local power market is rather small, LS Electric is evaluating it as a meaningful achievement considering its future growth potential and the characteristics of the power industry, in which customers do not easily switch companies. LS Electric's market share in Vietnam's low-voltage power equipment market has been over 35 percent since 2013.
The company says Vietnam is a suitable market to initiate expansion into ASEAN and maximize competitiveness in the field.
"Our advantage in the field is that Vietnam's cheap labor and location make it easier to export to other Southeast Asian countries. We are focusing on Vietnam to expand sales to neighbor regions," Park said.
LS Electric is the first among domestic heavy electric companies to secure a local production base, and build mutual trust by forming strategic partnerships with the Electric Power Administration and distribution outlets in Vietnam.
