Vietnam Fire Fighting Goods Market Trend

■ Product name and HS code
● Product name : Fire extinguisher (HS Code 8424.10) and fire alarm (HS Code 8531.10)
– The report is based on fire extinguishers and smoke alarms, which are the main items of firefighting equipment.
■ Market size and trend
● According to local media company Tuoitre statistics, there are more than 1,000 fire-fighting goods distributors in Ho Chi Minh, most of them are sold in Vietnam, and as a major brand, Tohasu.

– The major importers are the United States, Germany, China, Taiwan, Japan, Korea, Malaysia, etc.
● According to officials from several fire equipment companies, fire extinguishers are the most popular and the 4-kilogram capacity model is popular. The product is sold in Vietnam at about 9,000-1,000 won.
– There is also a high demand for carbon dioxide fire extinguishers and powder extinguishers widely used in various types of fires, including electrical fires, oil fires, and chemical fires.
● Due to the recent big fire in Ho Chi Minh City, the Vietnamese government has been strengthening its control and supervision of firefighting facilities, and the demand for firefighting equipment is also increasing.

– On March 23, 2018, a large fire accident occurred at Karina Plaza apartment in Ho Chi Minh City, Vietnam, which killed 13 people.
– Since the incident, the Vietnamese government has ordered the inspection of apartment and building fire safety systems in major Vietnamese cities, including Ho Chi Minh City, to further strengthen management and supervision of relevant regulations.

■ Income trends in the last three years and in the top 10 countries
● Although it is difficult to determine the import volume of the latest Vietnamese fire-fighting equipment due to the absence of statistics, Vietnam imported about $ 78.2 million in fire extinguishers and fire alarms and imports steadily rise every year.
– Major importers include China, South Korea, Singapore and the United States, with the largest share of imports to China at around 30 %.
Vietnam's major importer of fire-fighting goods
(Unit : $ 1,000)

■ Income scale and trend for
● Korea is the second and third largest importer of fire alarms and fire alarms in Vietnam
– Vietnam imported about $ 6.5 million in fire extinguishers from Korea, the second highest import after China, and the third largest importer of fire alarms after China and Singapore in 2015.
- Our products are more affordable than those made in the U.S. and EU, and are gaining trust from Vietnamese consumers. As the fire safety awareness of Vietnamese consumers has been improved, quality of our products is higher than those made in China.
Import of Vietnam's Great Fire Alarm
(Unit : $ 1,000)

Note : HS Code 8531.10 Data Source : Vietnam National Statistical Office, ITC

Import of Vietnamese's Big Korea fire extinguisher
(Unit : $ 1,000)

Note : HS Code 8424.10 Data Source : Vietnam National Statistical Office, ITC

■ Competition trends and major competitors
● Major foreign brands distributed in Vietnam are Amerex (U.S.), Axel Thoms (Germany), Jakob Eschbach (Germany), Tohatsu (Japan) and Honeywell
● Major manufacturers and distributors in Vietnam

Data Institute : KOTRA Ho Chi Minh Branch

■ Distribution structure in Vietnam
● The distribution of fire alarms and fire extinguishers in Vietnam is not much different from normal product distribution procedures. Most importers supply or consume products directly to first and second retailers and wholesalers after importing products from overseas.
– In addition to this, commercial and residential buildings such as apartments, hotels and office buildings and large construction projects are usually supplied through bidding competition.
– recently, local consumers have been purchasing fire safety products in Ho Chi Minh City due to a big fire.

■ Tariff rate and certification system
● Non-tariff items for fire extinguishers and fire alarms
– Thus, while related companies can export Vietnam to Vietnam without any additional tariffs, other countries are also exempt from tariffs.
Import tariffs on Vietnamese fire extinguishers and fire alarms by FTA (%)

Data Source : Vietnam Import and Export Customs Book

● Import control and certification
– Neither fire extinguishers nor fire alarms have special import control policies, as they are subject to certification but are randomly certified items rather than compulsory certification, and are certified by the certification authority according to the request of the importer.
Summary of Vietnam Fire Alarm Certification Information

Korea Trade-Investment Promotion Agency

Vietnam Fire Alarm Certification Procedure
■ Implications
● recently, a big fire accident in Ho Chi Minh City has improved local consumers ' awareness of fire safety
– In 2017, there were 4,114 fire explosions in Vietnam, 119 people were killed, 270 injured, and about $ 89.9 million damaged.
– – A Ho Chi Minh City Carina Plaza fire that killed 13 people and injured dozens, in particular, has improved the fire safety awareness of Vietnamese consumers and affected sales of related products.
- According to a local company official who is distributing and selling Korean fire-fighting equipment, there has been a sharp increase in purchases of fire extinguishers, masks and emergency ladders by local people since the Carina fire.

● Strengthening supervision of fire safety management by the Vietnamese government and favorable impact on increased demand for firefighting equipment
– The Ho Chi Minh city government and fire department recently checked all fire safety systems in major apartments and buildings and determined that many buildings violated the relevant regulations.
– Also, the recent boom in construction in Vietnam is expected to boost the demand for firefighting equipment as all buildings and facilities must be equipped with fire supplies.

● South Korean companies should be interested in the Vietnam Fire Safety Exhibition
– Vietnam has a weak base for domestic fire-fighting equipment, and Korea is one of Vietnam's major importers.
– Vietnam holds a Fire Safety Exhibition called Secutec Vietnam every year, and our companies interested in entering the Vietnam Fire Products market can take a market survey on the market.
– This year's Vietnam Fire Safety Exhibition will be held at SECC Exhibition Hall in Ho Chi Minh City for three days from August 16 to 18.

The copyright of KOTRA & KOTRA Overseas Market News
[Data source : Vietnam National Statistical Office, ITC, website of each company, local media reports,
Total data on the Ho Chi Minh branch of KOTRA