Schindler Vietnam reaches for the sky

Ralph Ludwig

Choosing Vietnam to celebrate the South East Asian launch of its latest groundbreaking innovation for building transportation, the Personal Occupant Requirement Terminal (PORT) Technology, Schindler Vietnam strongly believes it will see again a significant sales growth this year despite tough times. Ralph Ludwig, general director of Schindler Vietnam Limited, told VIR’s Minh Thien how it could meet the ambitious target.

Why do you choose Vietnam to launch PORT technology in South East Asia?

Each of the individual South East Asian country is uniquely attractive with different market dynamics and each promises strong growth potential for this new product.

We chose Vietnam as the first market to celebrate the launch of PORT technology in South East Asia because it is a dynamic and fast growing market. With Vietnam’s bright economic prospects and the number of sizeable planned projects currently in the pipeline, there is no doubt that the Vietnam elevator and escalator market will continue its impressive growth in the future.

In addition, the launch of Schindler’s latest technology in Vietnam matches well with the country’s goal and aspiration to develop its hi-tech industry. 

What are the differences and original features of PORT technology compared to previous technologies?

PORT technology, the third generation of the destination dispatch control algorithm that Schindler has developed is an intelligent elevator system that revolutionises the way people move through buildings. Compared to previous elevator technologies, it can increase traffic efficiency by up to 30 per cent while delivering energy savings and enhances building security. We have already secured two big projects with PORT technology, including Indochina Plaza in Hanoi and Saigon M&C Tower in Ho Chi Minh City, each will be equipped with 30 and 35 Schindler elevators & escalators respectively.

Given the potential of this new technology, we are positive it will benefit thousands of people in Vietnam in the years to come. For example, it can be installed in any building structure, a high-rise skyscraper, intelligent office tower, mixed-use complex, hospital and luxury condominium.

Could you estimate the standing of Schindler Vietnam in elevator and escalator market which is now a competitive market with many foreign giant names?

Vietnam is our key market and we are proud to be in the market-leader position, thanks to the support and recognition from our customers. One of the key success factors is that we are able to offer top quality products and service to our customers. 

In order to further strengthen our market share, we aim to boost our presence in the low and mid rise segment of the market by providing competitive and innovative products. For example, we will intensify sales and marketing activities to introduce “Schindler 3300AP”, which is an elevator that perfectly suits residential and commercial buildings of up to 20 floors. We sold over 100,000 units in European market within several years of its launch.

Furthermore, we will progressively expand our geographical presence in Vietnam by setting up more offices including service and sales teams in other cities such as Haiphong, Nha Trang, Can Tho and probably in Vung Tau where the market of small and mid-sized office buildings are growing much faster.  In 2012, we will have three to four offices more in Vietnam.

Last but not least, we will continue to focus on training to develop our staff in terms of technical capabilities and safety awareness to provide top-notch service to our customers. It is a key factor for nationwide expansion. So far, we sold more than 2,000 units of elevators and escalators in Vietnam.  Last year, we achieved a growth rate of 25 per cent versus the previous year.

Could you share something about the expansion plan in production in Schindler Vietnam’s factory in Binh Duong province?

Our factory in Binh Duong province produces brackets, beams and builder’s elevator. 95 per cent of manufactured products are for the domestic market, the rest are for export.

To satisfy increasing demands from customers, we expanded the production area of the Binh Duong factory by more than 25 per cent and brought in state-of-the-art new automated machines to enhance productivity.

The production for the first five months in this year is already much more than the same period in 2010.

Do you think that Vietnam can produce whole elevators and escalators, not just components?

The Binh Duong factory specialises in producing elevator components. Considering that Vietnam is becoming increasingly attractive as a manufacturing base as compared to some other countries within the region, we will continue to assess its potential.