AI ELECTRONIC INDUSTRY CO., LTD
Partnering with Vietnamese business in view of expanding the factory rental business
AI ELECTRONIC INDUSTRY Co., Ltd. (hereafter referred to as “AI ELECTRONIC INDUSTRY”) is a registered company with J-GoodTech which develops, manufactures, and sells antennas used in portable relay stations, ozone water generators, terahertz non-destructive testing equipment, laser receivers, laser markers, and semiconductor testing equipment. AI ELECTRONIC INDUSTRY is also developing a factory rental business in Da Nang, Vietnam.
Utilizing J-GoodTech, AI ELECTRONIC INDUSTRY was able to be matched successfully with a business in Vietnam, resulting in meeting a local partner business with plans to expand the factory rental business.
We talked to AI ELECTRONIC INDUSTRY President Yutaka Takahashi to learn how AI ELECTRONIC INDUSTRY used J-GoodTech and how they succeeded in being matched with an overseas business.
Our Strengths is the capacity to offer a wide range of services such as design production, development of inspection measurement software, development of jigs and fixtures and quality inspection
Could you first tell us about AI ELECTRONIC INDUSTRY’s business strengths?
With a thirty-year track record, we have a large store of knowledge and technical expertise that gives us the ability to deliver a range of services that only a few SMEs in Japan provide. For example, we are capable of production process design, inspection and measurement software development, tool development, and quality inspection, etc.
Our ozone water generators have five patents, and we were the first in Japan to develop an electrolysis system for further improved performance.
We were also the first company in Japan to commercialize a terahertz frequency band non-destructive testing system with five patents for expanded use. We are the type of company that enjoys development challenges which test our strengths of many comprehensive technologies and knowledge.
Thinking that it will be helpful to increase our business exposure and expand our sales channels, we started to use J-GoodTech
How did you decide to utilize J-GoodTech?
Our first encounter with SME Support, Japan was ten years ago, and our relationship began with support from a specialist when establishing the midterm management plan and in succession of business. Later, when facing the challenge of expanding sales channels, SME Support, Japan introduced us to J-GoodTech, and we began using their services as a means to increase our exposure and pioneer new sales channels.
J-GoodTech is very appealing for us considering the reliability of its company members, the variety of industries it covers and the devoted support from its coordinators
What is the difference between J-GoodTech and other services? Specifically, what did you find appealing about J-GoodTech?
The following points come to mind when compared with other private business matching sites that we have used.
One advantage of J-GoodTech is the sense of security provided by a government-run organization, and the high level of reliability from a registered company. Another good point is the nationwide network of registered businesses that covers all of Japan. The wide variety of industries is very promising. The detailed level of care provided by coordinators (specialists) provides possibilities that differ from other matching sites.
Specialists recommended that we meet with certain companies, and although there were some mismatches at the beginning, matching accuracy gradually improved, resulting in reaching agreements.
J-GoodTech offers business matching services with overseas companies combining the advantages of both, the real-world and the web
What specific advantages are there to using J-GoodTech?
Overseas business matching using a combination of real-world contacts and the web.
I believe J-GoodTech is the only organization that can do this. A specialist gathered the necessary information, resulting in smooth business talks with Vietnam.
Although we had been running a factory rental service in Da Nang, Vietnam, it had become too small for our needs, and we began to consider building a rental factory in Hai Phong. However, we didn’t have a specific vision at first, and we wondered if we could expand the business to northern Vietnam. At that time, we noticed Needs information on the J-GoodTech site from a Vietnamese company that ran an industrial park, which resulted in a business talk with Vietnamese companies sponsored by SME Support, Japan.
We met a company that matched our needs at a business talk and could continue our talk with J-GoodTech coordinator support, giving us a foothold in promoting our business
How exactly did you go about matching this time with the process of building a second factory in Vietnam?
Although it was difficult for us to find a Vietnamese company that was a good match for us, we saw the Needs information from the Vietnamese company posted through the Needs function, and we learned about the opportunity of having business talks with Vietnamese companies at the New Value Creation Exhibition. Although it was our first time meeting at the business talk, our needs matched theirs, making it possible for us to continue talks after the exhibition had ended. The Vietnamese company had problems attracting Japanese companies, and they highly valued our knowledge and support abilities cultivated over the course of running the industrial park in Da Nang. Although we had considered building a rental factory in northern Vietnam, this meeting resulted in a win-win situation.
We later strengthened our relationship by both parties going back and forth between Japan and Vietnam, simultaneously crystallizing the details of the contract. SME Support, Japan told us about the public institution financing system, and coordinated the match with a major business partner of J-GoodTech, resulting in a significant foothold for bringing this venture forward.
He synergistic effect of collaborating with other SMEs assists in joining other fields and in product development
Can you tell us one last thing about future plans for utilizing J-GoodTech?
We have so far been successful in our business matches with major companies in Japan and overseas companies through J-GoodTech. Lately we have been thinking about putting more effort into further matching with SMEs registered in J-GoodTech. Over 4,500 distinctive Japanese SMEs are registered with J-GoodTech, and we believe an incredibly high level of synergy can be achieved by collaborating with other SMEs. We are currently building a consortium with a number of businesses in the Kanto area to develop new products, and we think it would be interesting if we can participate in other fields and develop products through this collaboration by way of J-GoodTech.
Other Remarks (Editor’s Notes)
Through this interview, we have learned that AI ELECTRONIC INDUSTRY is an exemplary company that maintains a challenging spirit and tenacious attitude toward establishing business. The factory rental business in Da Nang, Vietnam has resulted in inquiries from other companies who want to enter the market after hearing the praise for the Japanese companies already present.
AI ELECTRONIC INDUSTRY has built a good relationship with the local Vietnamese business who requested construction of the rental factory in Da Nang. Japanese companies who wish to establish a branch in Vietnam now ask AI ELECTRONIC INDUSTRY for assistance.
SME Support, Japan will continue to focus on SMEs holding both challenging spirit and problem solving skills, and make many other SMEs recognize them.