Having established a strong hold in Malaysia, tyre servicing equipment manufacturer Wonder Internation has shown a keen interest to expand its footprint to Vietnam.
Expansion into Vietnam for Wonder Internation
To gain the best exposure, meet with potential business partners as well as obtain industry or general views on its products and services, the company participated in the recent Saigon International Autotech and Accessories Show 2016 as part of its strategy to make inroads in the Vietnamese market.
Held at Saigon Exhibition and Convention Centre in Ho Chi Minh City from 26th to 29th May, it was Vietnam’s leading exhibition for automotive, motorcycle and auto parts. Taking centrestage in Wonder Internation’s booth were the 3D TW-99 Wheel Aligner and 3D TW-909 Mobile Wheel Aligner.
“This was the first time we participated in the show. The response was very encouraging. We received many enquiries on the products that we displayed, which showed that we had the products that they were looking for,” said Managing Director Allen Hsu.
Hsu pointed out that the company was very active in the Malaysian market since 1989. “We decided to set up a company in Malaysia because of its strategic location in the heart of Southeast Asia that offers a gateway to a regional market of more than 600 million people. All of our tyre servicing machine and equipment are assembled in our Malaysian premises. We aim to make our Malaysian office an export hub to Southeast Asian countries.”
In the company’s expansion plan, he revealed that Vietnam topped the list of countries in Southeast Asia. “Trade activities are increasing, particularly in Vietnam. With the rise of labour cost in China, more companies are turning to nearby countries, for instance Vietnam, to fill their orders. Other factors include foreign investors seeking to take advantage of free trade agreements, such as the Trans-Pacific Partnership, and the Government offering investment incentives to domestic automotive manufacturers. Besides that, the stable economic growth and significant boom in car sales for the last couple of years also added to the potential of the market.”
He revealed that the company was still in discussion with a few potential dealers who would be responsible for the northern and southern regions of Vietnam. The dealers sought had to handle sales, installation, aftersales services and express a willingness to grow with the company in the long term.
“There is a market gap between high-end and low-end tyre serving equipment in Vietnam and we are looking at the medium-high market. We believe this segment has great potential if we can provide the right product at the right price; as a manufacturer we are able to do that.”
The company also has a well-equipped training centre in Malaysia that provides training for its staff and dealers. Every year, he said, the company would conduct two training sessions for the staff with trainers from Taiwan and China to share their product and technical experience. As for the dealers, apart from the training that is provided from time to time, they were supported with individual training and technical assistance upon request.
“We see great potential in Southeast Asia within 5 to 10 years. We will focus on Vietnam at the moment. However, we have plans to expand to Myanmar and Indonesia. In line with our expansion plan, we will actively participate in various important exhibitions in these countries to create brand awareness,” he added.
