| Toshiba Corporation Establishes Vietnamese Joint Venture to Manufacture And Market Color Television Sets 21 October, 1996 TOKYO -- Toshiba Corporation today announced that it has established a joint venture company with Vietnam's Viettronics Thu Duc Company, in Ho Chi Minh City, Vietnam, to manufacture and market color television sets (CTVs). The company was established on October 1, 1996, following approval from the Vietnamese government. It will enhance Toshiba's local manufacturing operations and meet growing demand from the local TV market. The new company, Toshiba Vietnam Consumer Products Co., Ltd., will have an initial capitalization of US$2 million, 64 percent of which will be subscribed by Toshiba Singapore Pte., Ltd., and 36 percent by Viettronics Thu Duc Company, a leading Vietnamese manufacturer and marketer of consumer products. Capital investment for site construction and procurement of manufacturing equipment will amount to approximately US$6.7 million by March, 1999. Construction will start this December on a 17,200 square meter plot, and manufacturing is scheduled to begin in July, 1997. The plant will have an initial production capacity of 88,000 units a year, and a product line-up of 14-inch, 20- inch and 21-inch CTVs. The new company will initially have approximately 140 employees, rising to 220 at the time of full production in 1999. The company's output will be sold in Vietnam and also exported, mainly to other Asian countries. Establishment of the joint venture assures Toshiba of a solid manufacturing and marketing base for color television sets, allowing it to address both the strong growth in demand anticipated in Vietnam and to supply other fast-growing Asian countries. Currently, the Vietnamese TV market numbers approximately 600,000 units a year, which is expected to reach over 1 million units by 1998. Toshiba is serving its key markets for CTV by establishing a global network of CTV manufacturing and marketing facilities, with production plants in Japan, North and Latin America, Europe and Asia. Recent reinforcements of this network have seen a new Indonesian plant come on line last June, and the establishment of a TV plant in China last September. In fiscal year 1995, Toshiba facilities worldwide sold approximately 6.1 million CTV. Toshiba decided to establish the new Vietnamese company because of the country's importance as a fast growing market. Futher considerations were its proximity to Singapore, which enables Toshiba Singapore to extend full assistance to the new company and strong local support, including the availability of high-qualified workers. Commenting on the establishment, Mr. Kanji Oda, Group Executive of Video & Electronics Media Group said, "It is our wish to contribute to the development of Vietnamese industry through our business and local operations."
Outline of the New Company
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Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice. |