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Steel storage tanks enter Vietnam’s market
Steel storage tanks, used in many countries to store such liquids as petrol, water, beer and wine, penetrated the Vietnamese market this year. Viet Nam News reporter talked with Edward Lang, Asia and Pacific director of CST Industries, about the benefit of CST products.
What are the advantages of CST bolted and factory-coated tanks?
They are better, faster, cheaper and safer. All manufacturing processes are done to a consistent standard. We also provide expert advice on coating options, such as glass-fused, steel or thermoset-modified epoxy, depending on a client’s needs.
Panels are connected by bolts, nuts and sealants or gaskets. Superior coatings need minimum maintenance after installation. These are long-term cost savings.
Additionally, the sectionalised tanks can be built quickly, saving money in construction time.
Local semi-skilled labour can reduce installation and construction costs. Another benefit is that the tanks can be extended or relocated.
What do you think about the trading environment in Vietnam?
There are many projects in key industries such as steel, oil refining, water, waste-water treatment, paper and fertiliser. This is especially true since accession to the World Trade Organisation. There is a huge potential market for tanks and domes.
What are your plans for the Vietnam market?
After just one year of business in Vietnam, we have received many requests for quotations on on-going projects and several contracts have been signed. We signed the first contract worth US$300,000 for the Can Gio water project in April. Some projects have already been installed, such as the water-supply project in Buon Me Thuot, water storage for fire control at the Ha Tay Brewery, a silo for canxicarbonate storage at the Pha Lai thermal power plant, and a wastewater treatment project in Go Cat, HCM City.
We opened a CST office in Vietnam to provide full information on our products to potential customers. In Vietnam, our plan should focus on three key sectors: foreign direct investment (FDI) sector, private and state sectors.
After a year in operation, we are getting positive signals from FDI and private sectors. Next year, our plan is to open a branch office in HCM City where 60 per cent of our customers and projects are situated.
Can you explain your development strategy?
CST Industries, like many other companies, has been expanding markets in two ways: direct and indirect.
Our employees sell tanks directly to customers and we still use a channel of distributors.
For our first year in the Vietnam market, CST Industries used business-to-business (B2B) as the main marketing activity.
For the future, CST Industries have organised workshops, will take part in exhibitions such as the H2O exhibition from October 30 to November 2 in Phu My Hung, HCM City - and VietWater 2008 in Hanoi from November 18-20.
VNN
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