Fujitsu Vietnam gearing up for competition

Fujitsu Vietnam (FCV), a wholly Japanese-invested company, specializes in producing electronic circuits for computers and mobile phones. Its initial capital investment of $46 million increased to $160 million in 10 years of operation. Its export turnover in 2006 is estimated to hit over US$ 500 million. Dong Nai Newspaper’s reporter had an interview with Mr. Takanori Yamashita – General Director of Fujitsu Co. about how integration will affect the rate of growth of the Company.

Reporter: what opportunities will be open to FCV after Vietnams entry into the World Trade Organization?

Mr. Takanori Yamashita:  Vietnam’s entry into the World Trade Organization (WTO) will at the same time bring both opportunities and challenges. Vietnam is now be one among 150 equals who are members of the WTO including the world’s most powerful countries. However, Vietnam will face tough competition and pressure in international trade. The local business community, therefore, needs to get even more innovative in order to gain firm foothold in world markets  and cope with challenges brought about by Vietnam’s WTO entry. Besides, the State should issue policies clarifying investment procedures and provide support for new investors.

Especially, accession provides trade opportunities for direct exporting. FCV is now exploring direct export opportunities to the US market. Taking advantages of direct exporting for FCV can help the company reduce export costs.

Reporter: Will FCV achieve export revenues of over $500 million this year? Will the company face tougher competition or see more advantages in 2007?

Mr. Takanori Yamashita: FCV posted US$390 million in export revenues in the first ten months of the year. The company estimates output in 2006 to reach 31 million units of Printed Circuit Board Assemblies (PCBA) and 42 million units of Printed Wiring Board (PWB) and it expects sales to reach about US$510 million by the end of 2006, an increase of 15 per cent compared to 2005. In 2007, we are confident that the company will achieve the same level of growth in 2006. In the future, FCV will invest about US$10 million

The high-skilled workers are always the pride of FCV

Viet Nam has a five year grace period to curtail industrial subsidies after membership is granted. Under the WTO commitments, Vietnam must abolish the whole export subsidy for exported products as soon as Vietnam accesses the WTO. Thus, exporters will face tougher competition and greater challenges. We believe that FCV is be able to be competitive in international trade with more than 10-year experience in Vietnam’s computer industry. The company now employs more than 3400 labors, about 10 per cent of whom are Vietnamese engineers whose experience can work effectively in an international environment. All of them are ready to face new challenges of globalization. Besides, FCV with top quality products earns the trust and confidence of consumers around the world in the from of "FCV brand made in Vietnam"

Reporter: Early in the year, labour strikes broke out at Japanese enterprises in Dong Nai including FCV. How has the situation improved?

Mr. Takanori Yamashita: FCV’s employees are creative and innovative. We pay more attention to our employees and create favorable conditions for employees to advance in their professional. In addition, the company is creating a communication strategy that builds a shared understanding between employer and employees. The executive board of FCV’s trade union not only serves as a bridge for communication between managers and employees but also provides consultation for board of managers of FCV on labor policies.

Reporter: What is the development orientation of FCV in Vietnam?

Mr. Takanori Yamashita: Fujitsu’s development rely on the following principles: FCV wishes to make its customers’ dreams come truth and satisfy all their wants. FCV was formed to bring profit to its employees. FCV seeks production development strategies that do not destroy the natural environment. And FCV has a responsibility to make contributions to the development of the country and people of Vietnam.

Reporter: Thank you

Reported by Kim Loan

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