Bosch continues strong double-digit growth performance in Vietnam

June 29, 2017 | 17:10
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Bosch, a leading global supplier of technology and services, ended its 2016 fiscal year with $98.9 million in consolidated sales in Vietnam, thus registering a growth of more than 40 per cent.
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The total net sales, including sales to non-consolidated companies and internal deliveries to affiliated companies, amounted to $322 million.

The past year‘s achievements, spurred by favourable domestic market conditions, set the grounds for Bosch’s positive outlook in the country for 2017.

Vo Quang Hue, managing director of Bosch Vietnam, said: “Vietnam’s urbanisation and industrialisation are taking off strongly and the country is envisioning a smart economy. These trends offer great opportunities for us to widen our Bosch product offerings, especially in the areas of connected solutions for smart cities and Industry 4.0. Furthermore, we will continue with our investment of $47million into the Bosch Gasoline Systems plant in Dong Nai, as well as increase the capacity and competency of our research and development workforce.”

Bosch currently employs more than 3,100 associates in Vietnam, more than 40 per cent of whom are based at the company's two R&D facilities in Ho Chi Minh City, the Bosch Automotive R&D Centre and the Software and Engineering R&D Centre (Robert Bosch Engineering and Business Solutions Vietnam).

In 2016, Bosch was ranked among the 15 best companies to work for in the country, making it the fourth consecutive year that Bosch is being listed as one of the top 100 employers.

Internet of Things Conference: showcasing Bosch connected solutions

As connectivity through the Internet of Things (IoT) is a strategic area for Bosch globally as well as in Asia, the company inaugurated its first Internet of Things Conference in Ho Chi Minh City on June 27 by showcasing a range of connected solutions to support Vietnam’s technological advancement, particularly in the areas of smart cities and industry 4.0.

The one-day event included interactive panel discussions and an exhibition on innovations in the following areas:

  • Mobility: Key solutions, such as Intelligent Parking Management, Intelligent Traffic Management, and Retrofit e-Call (capitals?), ease parking for drivers, optimising the efficiency of parking areas and ensuring traffic safety from the perspectives of both traffic administrators and individual drivers.
  • Ports and airports: Technologies to help maximise efficiency, while minimising accidents and losses through intuitive surveillance innovations to manage queues and crowds. These include a Transport Data Logger sensor solution that tracks the handling and journey conditions of sensitive goods.
  • Commercial spaces: Intelligent solutions for commercial properties, such as retail analytics and Non-Intrusive Load Monitoring System, that help enhance security for people and assets, as well as improve the efficiency of energy consumption.
  • Residential spaces: Connected home appliances show a glimpse into the future “smart home.” Solutions, such as Fire Detection, Water-Powered Smart Water Meter, and Bosch Micro Climate Monitoring System, offer improvements in safety and security for residents, maximising the effectiveness of water consumption and alerting people to ambient air pollution levels.
  • Industry 4.0: Connected manufacturing that streamlines processes, while improving productivity. These include industrial connected devices and machines equipped with Bosch sensors or the modular Mechatronics Training System mMS 4.0, which is highly applicable for technical and vocational training at universities and educational institutions.

Strong growth across all sectors

Bosch continues strong double-digit growth performance in Vietnam
Bosch organised the first IoT conference in Vietnam in June

In the fiscal year 2016, Bosch recorded positive growth in all four of its business sectors in Vietnam. The Mobility Solutions sector was encouraged by the market potential for e-scooter solutions, thus Bosch introduced its Automotive Electronics division in Vietnam.

It provides microelectronic products for automotive applications, which are important components for e-scooters. The Automotive Aftermarket division recorded double-digit growth in all sales channels in 2016. The Gasoline Systems plant continued with the expansion of its production lines. The plant has made a good start into 2017 with the celebration of its 20 millionth CVT (continuously variable transmission) push belt produced in March.

The Industrial Technology sector registered a significant increase in sales compared to the previous year, marking a record for the Drive and Control division. The division secured projects to provide solutions for the automotive industry, as well as help gradually deploy the connected industry, or Industry 4.0, for its customers’ manufacturing activities and in educational institutions.

Bosch’s Consumer Goods business has a robust year, due to the strong performance of the Power Tools division. New innovative products were key drivers of growth and the overall performance. The Hammer segment was the market leader among construction users. In addition, demand for Do-It-Yourself (DIY) products and sales through online platforms are growing in Vietnam.

In the Energy and Building Technology sector Bosch’s Security Systems division registered double-digit growth with all of its main products relating to video surveillance, conference systems, fire detection, access control, and building management systems as well as professional audio and conference systems.

Solutions and technologies from Bosch Security Systems help keep people, assets, and vehicles safer in high-profile projects, such as National University of Hanoi, Thao Dien Masteri, Vo Van Kiet Highway Traffic Surveillance, New Government Office, German House, and APEC meeting office, among others.

Global strategy and business outlook for 2017

Bosch continues strong double-digit growth performance in Vietnam
Connectivity through the Internet of Things and Industry 4.0 stand at the heart of Bosch Group's strategy

For 2017, in light of a subdued economic outlook and geopolitical uncertainty, Bosch aims to achieve sales growth of between 3-5 per cent. Despite heavy upfront investments in afeguarding the company’s future, results are set to rise.

“Today’s success gives us the leeway to shape tomorrow’s world,” said Dr Volkmar Denner, chairman of the Bosch board of management. “As an innovation leader, we are shaping and driving transformation,” he added. The focal points of this transformation are changes in the mobility sphereand IoT connectivity.

By 2020, all of Bosch’s new electronic products will feature connectivity. The key to this is artificial intelligence (AI). Over the next five years, Bosch will be investing EUR300 million (approximately $342 million) in its own centre for artificial intelligence.

In the Asia-Pacific, Bosch recorded a hefty 8.3 per cent increase in sales in 2016, reaching EUR20.8 billion ($23.7 billion). Bosch now generates 28 per cent of its total sales revenue in the Asia-Pacific, compared to the 27 per cent in the previous year.

By By Hien Luu

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