Duc Nhan Corp: Developing with Strong Trademark

Nguyen Thanh Nhon, the founder of Duc Nhan Corp - formerly Duc Nhan Wood Processing Enterprise, comes to the wood with deep passion and desire to become a leading carpenter. With the current capacity of some 1,400 containers of outputs and export revenues of nearly US$15 million, Duc Nhan has been known as a leading woodwork exporter of Vietnam.

 

Initially, Duc Nhan Corp was Duc Nhan Kon Tum Co., Ltd founded in 1998. To date, with a monthly output of 45 containers and annual export earnings of US$5.5 million, the company has created jobs for 650 people.

 

In 2001, Mr. Nguyen Thanh Nhon decided to invest in Duc Nhon Quy Nhon in Phu Tai Industrial Park (Quy Nhon city, Binh Dinh province) to expand production. With more than 500 skilled workers and revenues of US$4.5 million, Duc Nhan Quy Nhon Company has progressively affirmed its position on the market, especially after it adopted LEARN model to enhance productivity and cut down costs. Based on its new management system, the company easily obtained the ISO9001 certificate.

In 2003, with a sharp mind for the furniture market, the owner of two outdoor furniture factories decided to step into indoor furniture market with its new Duc Nhan Binh Duong 1 factory in Di An district, Binh Duong province. Located on a small area of 6,000 m2, Duc Nhan Binh Duong 1 can export 20 containers a month and meet local demand.

 

After that, when the global demand for Vietnamese indoor furniture surged and many regular importers of outdoor furniture placed indoor furniture orders for European and US markets, Duc Nhan built the second factory in Binh Duong province’s Tan Uyen district. The facility, powered by two modern painting lines and dust cleaners imported from Denmark, is capable of turning out 100 containers a month.

 

Spreading deepening global economic crisis is denting the demand for all products. The wood industry is not an exception. Many factories are on the verge of closure or even bankruptcy. To deal with global economic woes, Duc Nhan decided to restructure to grasp opportunities when the world economy revives. At the same time, the company is seeking new markets and boosting domestic sales in addition to declining export markets.

 

To start with the restructure, Duc Nhan merged with factories and set up Duc Nhan Saigon Company in October 2008. The new entity bears heavy responsibility of professionalising competence and functions of its members. Duc Nhan Saigon is liable for R&D, designing, marketing, sales, material purchase, quality control and after-sales service.

 

With the holding company model, Duc Nhan Corporation has professionalised its member companies and enhanced production management to turn out best products for the market and customers. Duc Nhan has a strong force of experienced and systematically trained designers. Recently, Duc Nhan designers have made many favourite products for customers and the achievement promises to bring more new customers for the company. In addition, with its achievements and experience on the international market, the sales and customer management department is also the pride of Duc Nhan. The department not only proactively seeks customers but also promotes marketing activities and consumer surveys to find out their new taste. With the restructuring, the purchasing department was formed to ensure the input quality. Then, Duc Nhan can easily manage liabilities and finances of the entire company. More importantly, the consistence of material quality is strictly controlled.

With this system, the quality system administration is the top task. Being aware of this vital issue, Duc Nhan has adopted the new quality management model to further tighten quality of the entire system.

 

To tap the potential domestic market, the company officially devised the Modern Life trademark with the aim of building an interior and exterior furniture shop chain in the country to sell its products. In addition, the company also designs, implements and decorates interiors and exteriors for houses, apartments and other civil works.

Apart from business goals, Duc Nhan also pays attention to community benefits, especially environmental liability to the wood industry. To prevent illegal logging and protect forests, the company only uses certified timbers. Therefore, Duc Nhan soon became a member of Forest Stewardship Council (FSC) and a member of the Vietnam Forest and Trade Network (VFTN) in 2009. In addition to environmental liability, the company attaches much importance to social and corporate responsibility and takes care of spiritual and material life of its staffs. Especially, Duc Nhan strictly obeys regulations on underage labour and international conventions on human rights and children rights.

 

With its restructuring, Duc Nhan is creating a general force originating from its internal strength and confidence of all officers and employees to overcome the tough time a head and conquer new challenges. Bearing a great mission, Duc Nhan Corp is making increasing important contributions to the development of the Vietnamese wood industry, social security and economic development.