Mao Khe -TKV Mechanical Joint Stock Co.:Developing Vietnam's mechanics industry

Mechanics is the key industry in the country’s sustainable growth strategy. However, over the past years, the mechanics industry has failed to meet the country’s development demand. In recent years, the Party and the government have issued important policies to recover and promote the development of the mechanics industry. Proactive and creative enterprises have renovated their technologies in an attempt to establish the position of mechanics products of Vietnam in domestic and regional markets. Mao Khe - TKV Mechanical Joint Stock Company is one of those businesses.

 

The company started business by manufacturing equipment for coal exploration and production from small initial contracts worth only tens of millions of Vietnam dong in 1995. So far, the company has manufactured equipment and spare parts for exploration, transport, and sorting of coal, chains for the cement and sugar cane industries, as well as manufactured and installed steel structures. Mao Khe –TKV Company has also designed, produced and repaired means of road transport, waterway, and railways and manufactured building materials. The business expansion has helped establish a strong mechanics company both inside and outside the country. Currently, the company is a prestigious partner not only in coal industry, but also in other industries in Vietnam and the world.

 

By the end of 2007, the company estimates revenues at VND70 billion (US$4.375 million), creating jobs for 360 workers with average income of VND3 million per month.

Mr Vuong Van Canh – the company’s union chairman cum office manger said those achievements are attributed to the creative and keen management of the company’s leaders. During difficult times in the coal industry, the number of orders was very small, so the company had to take over small-value projects in order to generate jobs for its employees. In addition, the firm has managed to restructure its labour force and rearrange the workload to match the professional ability and qualification of each official and worker, which has helped promote the company’s strength and raise production.

 

"The revenue of VND70 billion per annum is not a big figure for a business in the mechanics industry," said Canh. He added that the company’s development strategy is to focus on researching and developing the production of small machines and manufacturing equipment to meet technology demand in transport and coal sorting. It plans to expand the manufacturing of spare parts to replace imported products. The company will boost investment in its facilities to raise productivity and quality while reducing price, to maintain its competitiveness on the market.

 

With the growth of the group and the development strategy of the mechanics industry in Vietnam, the company has affirmed its position and kept pace with the development of other countries in the region and the world.