Ching Gu Electronics, a fire safety equipment manufacturer, exports to various Southeast Asia markets, especially Vietnam and Indonesia, because of their huge growth potential. “We’ve got two local companies becoming our sales representatives in Vietnam,” said Lee Ran-huang, GM of Ching Gu Electronics. A recent s
Ching Gu Electronics, a fire safety equipment manufacturer, exports to various Southeast Asia markets, especially Vietnam and Indonesia, because of their huge growth potential.
“We’ve got two local companies becoming our sales representatives in Vietnam,” said Lee Ran-huang, GM of Ching Gu Electronics.
A recent survey from the Organization for Economic Cooperation and Development indicated that Indonesia and Vietnam will record growth rates of 6 percent and 5.4 percent, respectively, over the next five years. As for Southeast Asia economies in general, they will grow at a CAGR of 5.4 percent between now and 2018.
According to Lee, Southeast Asia building codes have become more stringent, creating opportunities for more sophisticated fire safety technologies and products, especially those that generate accurate data to help firefighters detect and respond to fires more effectively.
Challenges still linger. Lee cited as an example products’ selling prices, which have been affected by intense competition from mainland China.
Despite these challenges, there are still ways to win out in the market. One of them is to add value to products based on the demand of customers. “The products always have to follow exactly what’s needed by consumers. Meanwhile you must have a vision for what will be needed five to ten years later,” he said.
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