Suwanna: Boosting Vietnam investment to bypass high import duties.

Bertram Chemical (1982) Co, local producer and distributor of the herbal-oil product Siang Pure Oil, is considering expanding its production to facilitate plans to increase exports to Vietnam and India.

Marketing director Suwanna Akara-pongpisak said the company needed to increase its investment in Vietnam, because it now had to pay high import duties - 50 per cent of the product value on average - on exports to that market.

However, she said she could not disclose the new budget for Vietnam, because it was still being decided. But any increase in its investment would involve a joint venture with a local partner.

Vietnam is the main market for exports of Siang Pure Oil, totalling Bt50 million last year.

The company will wait to increase exports to India until the product catches on better there, which is expected to take three to five years.

Suwanna said Bertram Chemical had raised its operational budget to Bt50 million, in order to increase production capacity from 42 million three-millilitre bottles to 55 million in the second half of this year. The move is part of the company's efforts to expand exports and increase sales by 20 per cent this year.

The company exports to Laos, Cambodia, Burma, Vietnam, Malaysia, Indonesia, Brunei, China, the Middle East, Canada, the United Kingdom, Germany and the United States. Suwanna said half of sales last year came from exports.

Bertram Chemical recorded sales of Bt300 million last year, 95 per cent from Siang Pure Oil and the remainder from other products, including Peppermint Field Balm and Gel.

To help achieve this year's higher sales target, the company is launching a new green-tea scent for its Peppermint Field Balm and Gel, which is targeted at young adults.

Suwanna said the company's marketing budget for this year was Bt80 million, up 33.33 per cent from last year's Bt60 million.

Siang Pure Oil commands 80 per cent of the market for herbal oil products.

Somluck Srimalee

The Nation