PC components distributor, Altech will set up an operation in Vietnam as a part of its Asia-Pacific expansion plans.
Altech already has branches in Hong Kong and New Zealand.
The distributor also re-entered the Russian market two years ago after moving the business to Australia in the 1980s. It made investments into an established company, trading under the name Karim in Russia.
Altech managing director, Antony Sheen, and his Russian business partner, had short-listed Vietnam and Indonesia when considering expansion the company. But they decided on Vietnam after the 2009 Jakarta hotel bombings when plans for Indonesia were put on hold.
Sheen said Vietnam showed great potential for Altech. It plans to open there in May, but unexpected government bureaucracy and paperwork meant it will be delayed to August.
“So many people live in Vietnam and there are a lot of opportunities,” Sheen said.
He predicts silicon-based products, particularly CPUs, will sell well.
Altech's large range of products should provide a competitive edge in the Vietnamese market, Sheen said.
“There is a lot of local competition but we don’t see it as being very strong because we have a lot of technology that is not there yet,” he said. “So that is our differentiation. We are not going there to compete because we have different products and pricing.”
If Altech's Vietnam operation is successful, it will consider moving into one or two other countries within the next 12 months. Taiwan and Philippines will be considered and Sheen will also re-evaluate Indonesia.
Sheen said he will also spend the year pushing the business in Russia by introducing products from overseas.
“I was quite keen to do it because the market is very big and it is still developing,” he said.