Executive Insight: Time for Vietnam

Yokogawa Engineering Asia recently announced the establishment of a new subsidiary in Southeast Asia’s fastest growing economy – Vietnam. Taking the helm is Kersi Aspar, Managing Director, Yokogawa Vietnam Company. He talks to CE Asia.

CE Asia: Why the decision to open up a subsidiary in Vietnam at this time?
Aspar: We have actually had a presence in Vietnam for 10 years now, and three years ago we set up a Representative Office. During this time we have been able to analyze the market, understand the culture and evaluate the business opportunities. With a new government in place and the recent WTO entry we felt that now was absolutely the right time togo in with a fully fledged company.

CE Asia: And where are the opportunities for Yokogawa?
Aspar: We are primarily targeting the oil & gas, chemical/petrochemical, and power sectors. While the overall economy is growing at around eight percent, in industrial automation – and especially in oil & gas and power – the growth is much higher and so that’s why we need to be present.

CE Asia: What type of activities will be carried out at Yokogowa Vietnam?
Aspar: There are two main objectives in setting up this new company: to provide service to our customers in Vietnam – we already have more than 40 project implementations in the country along with the largest market share for DCS; and to develop a pool of engineering resources, which can be used not only locally but throughout the region. It’s a very young workforce here and one that seems highly motivated to get on and succeed. Those kind of people will be an asset to Yokogawa – knowledge and skills can be acquired but passion and attitude cannot. We will send them to Singapore for training and from there they will have many opportunities to work on large, multinational projects in Asia.

CE Asia: Why choose Hanoi rather than Ho Chi Minh city as the company headquarters?
Aspar: In Vietnam, the government and most of the corporate offices are in Hanoi. So although most of the industrial activities are in Ho Chi Minh, decisions are made in Hanoi so that’s why we our main office is there. But we do have a branch office in Ho Chi Minh as well as a project office in Vung Tau. In terms of staff strength, we already have 30 and expect to double this in 2007, and then be up to200 people by 2010.

CE Asia: Many people say that Vietnam is not an easy place to do business, citing factors like an overbearing government sector and extensive regulations. Your thoughts?
Aspar: If you’re not familiar with a foreign environment and just rush in then you are very likely to get frustrated. But Yokogawa has been in Vietnam for quite some time now and we have legal advisors and consultants that we can call on. So we feel have a much higher level of familiarity having been ahead of some other companies that are just entering now. The country itself is also making efforts to improve the climate for foreign investors, in terms of introducing more favorable tax, employment laws, etc.

CE Asia: And how do you feel about being asked to lead Yokogawa in Vietnam?
Aspar: I have a dual role in that I am still heading up product sales and marketing (as Executive Vice President) for Yokogawa Engineering Asia, and now for the last eight months being in charge of establishing this subsidiary company. It has certainly been very hectic – setting up the offices, IT infrastructure, HR policies, etc – but I have a great team and I am very excited to be involved. Overall, with the country’s economic expansion, huge infrastructure development, human resources, WTO entry, I really do see it as the next big Asian tiger, and everyone at Yokogawa Vietnam is certainly looking forward to being part of the success story in the years ahead.