Duc Khai Corporation Prominent Enterprise in the Economic Integration

In recent years, especially when Vietnam officially became a member of the World Trade Organisation (WTO), there have been unexpected changes in the global and local market, putting many enterprises into difficulties with big losses, some even limit production and cut workforce …In the context of the global economic slowdown, Duc Khai Corporation has still gained major achievements in its operation with breakthrough in business activities. ViB Forum reporter had an interview with Mr Pham Ngoc Lam- General Director of Duc Khai Corporation about performance and achievements of the company.

Duc Khai Corporation has developed into a powerful corporation operating in many fields. Can you make an overview about the company's operation and capacity?
Formerly, Duc Khai had been a small business with five members. After 15 years of operation, Duc Khai has become a powerful group, operating in many fields. The company has an enthusiastic and hard working staff. Notably, we are proud of achievements and breakthroughs that we have gained.

What are the company's breakthroughs?
Under the motto: "Sharing benefits- sharing responsibility-building trademark", the company also takes due attention to its staff and considers them as the most valuable asset of the company. In line with the motto, we have worked out long-term development strategies for ourselves with a focus on multi-sector business activities. We have gained big achievements and made breakthroughs in some of these fields.

Four years ago, we poured investment into construction of petrol filling stations and stop stations. With rich experience operating in the field, we have carried out studies and chose favourable locations for the construction and planned to build more Duc Khai petrol filling stations and stop stations nationwide in the second quarter of 2009. Our petrol filling stations and stop stations show our determination and commitment to after-service and customer care services.

In the field of import and distribution, Duc Khai is the sole importer and distributor of such products as Toshiba air-condition, domestic electric devices of the UK-based Kenwood, and Italy-based Indesit. In the context of global economic slowdown and difficulties of the national economy development, we launched a programme in December 2008 titled "Sharing benefits" - Dividing 50 per cent of Duc Khai's total profits to its distribution and retail networks nation wide. Through the programme, we have helped our partners partly overcome difficulties and boost cooperation with them for the sake of common development and benefits.

In the distribution field, the company has made breakthroughs through the programme "Sharing benefits". In the field of site clearance, the company has encountered challenges as it is a sensitive field. With rich experience in site clearance activities for some key projects in HCM City invested by Duc Khai. We have got a green light from the Prime Minister to set up Site Clearance Company. The company would be allowed to operate for five years on a trial basis with the total chartered capital of VND1,650 billion, of which Duc Khai's shareholders contribute VND850 billion or 51 per cent, and the remainder comes from different sources including securities funds, foreign investment funds, local and international credit organisations … The establishment is very significant for the society, as it will help ease pressures on the State, lure more investment. Under the operation motto "Sharing difficulties", investors will feel safe in the field of site clearance. After five years of trial operation, Site Clearance Company will make a general report and submit it to the Prime Minister to learn from practical experience and then widely propagandise. To successfully operate in the field, we have got incensed from HCM City Municipal People's Committee to carry out Phu My-District 7 Resettlement Area project with the total area of 10 hectares. The project will be home to 3,300 resettlement apartments. In the upcoming time, we plan to seek approval from the municipal people's committee to invest in a construction project of 2,000 social houses. With determination and ceaseless efforts from the whole company, I believe that the company will make be successful during its trial operation.

What have been driving forces for the success of the company?
With the operation motto, we have won confidence and supports from our staff, partners and customers- they are reliable companions of ours who have helped us overcome difficulties and have become driving forces of ours in our operation. We, from the leadership to employees have closely joined hands in difficult times to share difficulties with the community.

In the global integration, the country still faces lots of difficulties, especially inflation and negative impacts of the global financial crisis 2008. Many enterprises will meet with difficulties as well and we are not an exception. However, with big achievements and breakthroughs over the past years, we are ready to encounter any difficulties on the way of our development. 

Not only gaining success in business activities, Duc Khai has joined many charitable and social activities, especially the building of office culture based on harmony of enterprise and society's benefits?
We are on the way to developing and of course we would meet with many difficulties. However, with the motto "sharing benefits- sharing responsibility" we think that social responsibility is truly commitment of enterprise to social-economic sustainable development through proper attention to the improvement of living standards of labourers, the community and society. In order to develop sustainably, an enterprise needs to pay attention to labourers' benefits, including fair salary payment, training, and community development.  Based on these ideas, the company has built plans for its human resources training and development through training courses, collective labour contract, salary policy, welfares, allowances and bonuses.

Running a business must go in parallel with profits, but enterprises' profits must be proper and suitable; for me, profits must go hand in hand with improvement of the company's social values. This is the true value of an enterprise. As a leader of the company, I always say and urge my employees to fulfil rights and obligations to the State; share benefits with the society. In this manner, the company can stand firm in the local market and make great contribution to the sustainable social-economic development.

Quoc Hung