In addition to small appliances such as electric rice cooker and electromagnetic oven, air conditioner is added to the product family at Midea’s base in Vietnam, with a total investment of about USD 40 million.

Facing the more intense competition in household electrical appliance industry in China, coupled with the ongoing appreciation of RMB against USD and the increasing manufacturing cost in China, Midea Group chooses a stable globalization strategy. A second production project has been set up in Vietnam, where household air conditioners will be manufactured after this Spring Festival and the annual output will stand at 1.5 million sets in 3 years.

The State Development and Reform Commission of China announced on 22nd that it has approved Midea Electric Appliances Co. Ltd. to invest and establish air conditioner assembly factory in Vietnam.

It is known to be the second production project set up by Midea in Vietnam. The household air conditioners manufacture in Vietnam and labeled with the trade mark of “Midea” will be delivered to Vietnamese and consumers of other ASIAN countries.

The Midea Industrial Park in Vietnam, covering an area of 50,000m2, was put into operation on January 16, 2007. With an investment of USD 25 million, including USD 10 million in fixed assets, the project is mainly intended for the manufacture of small appliances such as electric rice cooker, electromagnetic oven and electric water kettle. According to the plan, the park will achieve annual sales of USD 100 million by 2010.