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  • Seagate Claims 50 Percent Market Share in Vietnam
  • June 1, 1998 (HO CHI MINH CITY, Vietnam) -- Seagate Technology Inc. of the United States said it has a 50 percent share of Vietnam's market for hard-disk drives for personal computers.
    This announcement was made at a press conference held in Ho Chi Minh City on the occasion of Seagate's introduction of the newest addition to its Medalist line of 3.5-in. hard drives for desktop computers.

    Teh Ban Seng, sales and marketing director of Seagate in Southeast Asia and the Pacific, told BizTech that the new products will be on sale in Vietnam in three weeks via two distributors, Unicorp and private trading company Song Long.

    He said Unicorp has the most local expertise in consulting, while Songlong is more familiar with the local market's features.

    To date, Seagate has been known in Vietnam via these agents. However, it must try to compete with other competitors in the limited Vietnam market with its brand. There are 17 outlets are authorized to sell Seagate hard disk drives, Seng said. "In general, Seagate hard disk drives are now more popular in Vietnam through this outlet network," Seng said.

    The market situation became difficult after the regional currency crisis hit last July. "But the number of personal computers in Vietnam will continue to increase, because local users are on the rise," Seng said.

    "They are forced to buy PCs or change to new models of PCs or enhanced PCs. Hard-disk drives of higher quality always are in demand," Seng said.

    Seng Seagate said his company might survey possibilities of production in the country if conditions for foreign investment are improved.

    The warranty period for the Seagate products in Vietnam is three years. "It is a longest warranty among the markets in the Asia Pacific," Seng said.

    Seng explained that Vietnamese people prefer longer warranty periods.

    Although Seng claimed his company will reach a 50 percent market share this year. However, a recent survey by HCA and PC World Vietnam said Seagate accounts for only 31.11 percent of Vietnam's hard-disk drive market. Le thi Ngoc Quy, managing director of Song Long Co., said her company has five resellers nationwide.

    "In 1997 we sold 50,000 hard-disk drives for Seagate," Quy said. "We anticipate that will reach 60,000 units this year."

    She also said that among Seagate products sold in Vietnam, local users most favor the Medalist Pro New Generation priced at US$420 and the Cheetah priced at US$960 for an 8-bit disk drive and US$1,000 for a 16-bit one.

    Seagate has fared well in Vietnam because of these two reasonably priced products. Its two strong competitors in Vietnam are Quantum Corp. and Western Digital Corp. (Table 1)

    Table 1 Hard-Disk Drive Market Share in Vietnam



    Maker

    Market share

    Quantum Corp.

    66%

    Seagate Technology Inc.

    31%

    Western Digital Corp.

    3%

    Source: PC World Vietnam



    Seagate Technology Inc. started business in Vietnam in 1995.

    Linh Dan, an official with Tan Thien Ha Co., a Seagate service agent in Vietnam, said Seagate has not yet opened a branch in Vietnam.

    "Our office is considered Seagate's public relations department in the country," Dan said.

    (David Tran, Asia BizTech Correspondent)


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    Updated: Sun May 31 14:59:32 1998