Sumitomo Electric Industries, Ltd. announced that, the company has established a representative office in Vietnam to carry out marketing and other activities for expanding its hard metal cutting tool business in Vietnam.
Sumitomo Electric Industries, Ltd. is a manufacturer of electric wire and optical fiber cables. Its headquarters are in Chūō-ku, Osaka, Japan. The company’s shares are listed in the first section of the Tokyo, Nagoya Stock Exchanges, and the Fukuoka Stock Exchange.
Vietnam, where steady economic growth continues, an increasing number of Japanese automakers and parts manufacturers have been establishing plants as global production bases, and accelerating installation or expansion of their production lines in recent years. In addition to these activities by Japanese manufacturers, the spread of machining in local industries is also generating various needs. In response to this trend, Sumitomo Electric, which works in sales, marketing and planning of cutting tools, has established a representative office in Vietnam.
Aiming to expand its market share of cutting tools in Vietnam, Sumitomo Electric will conduct a broad range of marketing activities and provide its local sales agents with technical support in machining mainly in the automotive, steel, industrial machinery, aircraft, semiconductor and precision parts industries.
“The procedure to establish a representative office is relatively straightforward. An application with stipulated supporting documentation must be submitted to the relevant DoIT. The application and profile must be prepared in English and Vietnamese, and the license is usually valid for five years and may be extended.” Ms. Sophie Dao, Partner of GBS, a business law firm in Vietnam said.
How ever, a representative office not permitted to perform any activities generating profit. The main purpose of a representative office is to conduct market research, provide information on a company, product or service, and act as a contact point.