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SCMP Reporter

VIETNAM is the most recent of the Asian countries to adopt an open-door policy.

Ulrich Buchholtz, chief executive officer and group managing director of the Schmidt Group of Companies, is confident of its potential.

He sees Vietnam and China as the group's two main markets during the next 10 years.

Although Schmidt Vietnam was not set up until 1992, the Schmidt name is well known because of its technical aid and assistance to hospitals and clinics.

'We have been in Vietnam since 1966, helping to develop hospitals and providing medical equipment,' Mr Buchholtz said.

'During the embargo on trade, we were a key organisation for the distribution of aid money which was given for humanitarian measures.' Mr Buchholtz recognised the potential of the Vietnamese market and, in 1991, applied for a 100 per cent foreign investment licence.

 A year later, it was granted.

At that time, Schmidt had one person in Vietnam; now Schmidt Vietnam has a staff of 210 with branches in Hanoi, Ho Chi Minh City, Danang and Quanling.

The main business remains medical equipment. Its biomedical and imaging departments provide sophisticated equipment, such as computerised anaesthesia machines, lasers and clinical laboratory and ultra-sound equipment.

A Ministry of Health survey in 1994 showed that 90 per cent of all equipment and apparatus in hospitals and clinics needed to be upgraded.

Schmidt Vietnam does not rely on medical sales alone.

Schmidt Engineering, one of the company's business units, is involved in environmental technology.

'Halong Bay is a popular tourist destination containing a lot of hotels and the government is aware of the waste water pollution problem.

'It has laid down that the hotels must provide their own [waste water] treatment system,' Mr Buchholtz said.

Schmidt has the partners and the competence.

 It is bringing in high level equipment and providing technical training as part of its technology transfer programme.

Mr Buchholtz said that Schmidt worked closely with the government and also acted as an adviser on hi-tech issues, such as the development of pollution laboratories for analytical testing.

It is also working as a consultant for Science Hi-Tech Parks in Hanoi and Ho Chi Minh City and hopes to manage them.

In co-operation with the government ministries, there are plans to have a laboratory for concrete and material testing by next month.

Schmidt's most recent project is the development of the Hanoi International Technology Centre (HITC).

One of Schmidt's corporate missions in Vietnam is to encourage technology-based companies to establish operations in Vietnam.

The HITC, which is the first building of international standing in Vietnam, has been designed to provide facilities for such companies and the Schmidt Group has invested nearly US$100 million in the project.

Phase One, the Schmidt Science and Technology Tower, which cost US$22 million, held its soft opening in May last year.

Permission for Phases Two and Three have been granted. The project will be finished by 2000.

Phase One is a nine-storey development of 17,850 square metres. It includes grade A office space, an exhibition hall, seminar rooms, testing laboratories, a medical centre and restaurants and banking facilities.

Phase Two will have international communication facilities, a design centre for local research and development companies and business incubation facilities similar to Hong Kong's Industrial Technology Centre.

Phase Three will include warehouse facilities, a civil engineering calibration standards laboratory and training facilities.

Each phase will have additional conference and exhibition space.

Mr Buchholtz is bullish on Vietnam.

'The government knows what it wants. It knows what mistakes other countries have made, such as only manufacturing low-end products and ending up with an unskilled labour force. It is aware of pollution and infrastructure problems.

'We must pay attention to what they want and intend to achieve,' Mr Buchholtz said.



Vietnam seen as big player