Japanese trading company Toba Inc. has established a wholly owned subsidiary in Vietnam in anticipation that more Japanese manufacturers will invest in its rapidly growing economy as they move out of China.
Japan is helping its companies move critical production away from China after the COVID-19 pandemic highlighted the risk of making China a single point-of-failure in global and regional supply chains.
Toba will bring its expertise in providing customized production solutions and work together with suppliers to develop the products for manufacturers setting up operations in Vietnam.
With a capital of $500,000, subsidiary Toba Inc. (Vietnam) Co. was established in the Vietnamese capital of Hanoi on June 16. Staffed with five workers, the unit will start work on Aug. 1, the parent company said in a statement on Monday.
The subsidiary will offer sales of control machinery, factory automation equipment such as industrial robots and industrial equipment, apart from providing consultancy on efficient, cutting-edge production.
The subsidiary will focus on Japanese manufacturers operating in Vietnam first. It plans to extend its business and service to local producers subsequently, just like how its Shanghai and Bangkok subsidiaries have done, said a spokesman for the company.
Moving into Vietnam is also part of the company’s plan to expand overseas as a growth strategy.
Tokyo-based Toba had established a representative office in Hanoi earlier in 2014 to support customers in Vietnam who had bought products from the company as well as conduct market research. The new unit has taken over its role.