A case of Forza Italia in Vietnam

Given your 20 years of experience in doing business in Vietnam, what are the success stories and lessons you can tell other Italian investors seeking investment opportunities here?

The Ariston brand name was first known in Vietnam in 1988. We opened our representative office here in 1995 and built the factory in 2004. This is a new MTS move to confirm its long-term business commitments in Vietnam. It’s safe to say that MTS is one of the first Italian investors to successfully establish a firm foothold in the market in the past 20 years.

I hope many Italian companies will find the right Vietnamese partners at this biggest-ever bilateral trade promotion event. I believe that Vietnam is a potential market, not just for low costs, but for friendliness and reliability.

Nevertheless, to be successful here, you have to really know the market, consumers’ habits and, more importantly, always aim for the highest, which is to satisfy customers’ needs with top quality products. In addition, businesses wanting to invest in Vietnam also need to be careful about brand name protection to prevent their products from piracy or counterfeiting. That is also a way to protect consumers, by guaranteeing them access to genuine products and guaranteeing their own safety.

While Ariston, Piaggio and a series of fashionable Italian brands have a strong base with Vietnamese consumers, Italian businesses do not appear to have flourished at the same pace. What is your opinion?

It is a fact that there are only a few Italian investors in Vietnam now, even though the ‘Made in Italy’ concept has become a legend not just in Vietnam but worldwide. Indeed, Italians are world leaders in many areas, particularly design, technology and fashion.

It is not a coincidence that in many cases, Italian style can be considered the epitome of good taste. The Ariston products, in particular, have always been known as a perfect mix of cutting-edge technology and delicate design, which is one of the reasons why Ariston is always number one in the water heater market in Vietnam.

I think that the modest presence of Italian businesses in Vietnam is due in part to the huge distance and secondly, the traditional mindset of Italian investors, who are often very careful in choosing where they put their money, especially in a foreign country. Anyway, we have changed now and this event is proof of Italian businesses’ special interest in Vietnam’s market.

Do you think the current ailing global economy may force new Italian investors to reschedule their business plans in Vietnam?

It’s true that the global economy is in for a hard time, but I believe that in Vietnam Italian investors can still find potential for development and good investment opportunities. The sheer number of delegation participants, some 160 Italian companies, consortiums and associations, demonstrates a strong belief in the potential of Vietnam’s market.

I learned that 15 Italian companies have shown an interest in doing business in Vietnam and more are to come after this event. This is also a big chance for Vietnamese makers of footwear, textiles and garments, furniture and other products to get more customers.

Are you heavily affected by the ongoing economic difficulties? Do you have any expanded investment plans held back by the high inflation and interest rates?

In the overall context of world economic turmoil, Vietnam is no exception. Most businesses in all industries are feeling the impact of economic unrest at different levels. For our part, we can still manage to maintain the planned growth rate. By making flexible adjustments to business strategies, we are positive that we have what it takes to continue our success story in Vietnam.

As part of our product strategy, we are going to introduce a series of instant water heaters in the south, integrating advanced power-saving technology. In addition, Ariston is planning to market solar powered water heaters, which are not only environment friendly but can help address the energy shortage in Vietnam. Ariston is currently the only brand name in the industry to have its entire product range equipped with Electric Leakage Circuit Breakers (ELCB), which are a 2008 manufacturing breakthrough.

In the next year, we plan to strengthen the maintenance network nationwide with massive investments in human resources. Good maintenance means longer product life and more money saved by the consumers. I believe that this can also bring substantial benefits to the consumers in the current situation of high inflation