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TRUNG VIET COMMERCIAL AND TECHNICAL CO., LTD.

127 Ky Con St., Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam
Tel: +84 8 3914 2468

Fax: +84 8 3914 1939

Email: info@trung-viet.com Website: http://trung-viet.com


Ho Chi Minh City, Vietnam, 21st March, 2016

Dear Mr. Raju,


After considering your proposal, we would like to share with you something about the Vietnam
market:
Our turn-over in Mechanical Seal: 200.000 300.000 USD/year
There are 2 major types of customer:
- Pump Manufacture and Industrial Markets:
+ Pump Manufacturer: There are a lot of Pump Manufacturers in Vietnam. As I known
that they use 500 1000 pcs of mechanical seal with many different types per day for 1
company.
+ Industrial Markets: There is a lot of store in each Industrial Market in every Province
throughout of Vietnam from the North to the South. They are Agent or Retailer. Almost
they import from China with the large quantity and they sell for smaller retailer.
Therefore, their price is very cheap and they have a big stock in Vietnam.
+ In this market, if you dont have a big stock here, you are unable to sell. Because the
customers need the available products, they cannot wait for production from 2-3 weeks.
+ The type seal they are usually use: 301, 103, 560A, 155, E,
They focus on the price, dont care about the quality or brand name.
- Factory:
+ As you referred, they are: Chemical Plants, Oil & Gas, Fertilizer, Petro Chemicals,
Milk Dairy, Pharmaceutical, Breweries,Vietnam has joined the WTO (World Trade
Organization) in 2007, nowadays, more and more Industrial Zones have been building
and manufacturers have been establishing.
+ Currently, they are using some famous brand such as: EagleBurgmann, John Crane,
Flowserve, AESSEAL, etc. As you know that they are all of the famous brands in the
world. Of course, their price is very expensive!
+ Major type seal: M7N, M3N, series MG1, 2100, 502, HJ92N, Component Seal, Metal
Bellow Seal, Single Cartridge Seal, Dual Cartridge Seal, Engineered Seal,
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+ However, I realized that most technicians are unable to repair the seal due to the lack of
experience and equipment. This is also a good chance for any companies can do this.
They prefer the quality and the brand name, half takes care about the price, the
others dont.
OPTION 1: BUILDING A SMALL MANUFACTURING IN VIETNAM:
1.
2.
3.

4.

5.

What is your orientation to open a manufacturer in Vietnam?


Short term
Medium term
Long term
What is your advantage and financial circumstance?
Pump manufacture and Industrial Market: They focus on the cheapest price, are you able
to compete with China products?
Factory: They take care about the quality and brand, your experience and the origin from
India can compete with famous brand from EU?
What is your market segmentation?
+ Geographic: Only in Vietnam or anywhere else?
+ Target market:
Pump manufacture and Industrial Market
Factory
+ Distribution channel:
P (Producer) -> C (Consumer End user)
P (Producer) -> Agent -> C (Consumer End user)
P (Producer) -> Agent -> Retailer -> C (Consumer End user)
How much percentage of shares you will keep? What is our position in this
manufacture if you are the majority shareholder and deputing your engineer to
Vietnam? And what is our job?
Which product range do you want to develop in Vietnam?

OPTION 2: CO-OPERATE WITH A PARTNERSHIP IN VIETNAM


In regards to this proposal, we would like to offer that we will be your EXCLUSIVE AGENT
in Vietnam for 3 years in order to promote and develop your brand
1.
2.
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What is your target for each year?


What is your policy and support for the Agent?
Certificate of Exclusive Distributor
Information security for each order
Catalog in book and E-Catalog
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3.
4.
5.
6.
7.

Technical and technology


The sample for displaying
Fee for advertising and hiring the showroom
Commission for achieving over the target
Visiting your company
Deputing our engineers to work along with your engineers, said you. Please let
me know how long you can depute your engineer in order to work with them? Working
as a long term at our company or based on each Project?
How much discount percent we will get in your price list?
How is your stock?
Please let us know which type seal you usually are in stock
How is the delivery time?
Normal
Urgent
What is the warranty policy?
What is the payment term?

I look forward to hearing from you.


Thanks and best regards,

Hoang Minh
(Director)

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