AA Construction Architecture Joint Stock Company has not only taken the lead in the Vietnamese wooden furniture market but also pioneered in finding new ways for the wood industry. Reporters of Vietnam Business Forum had an interview with the General Director Nguyen Quoc Khanh on the firm’s successes as well as contributions to the wood industry over the past time.
Over the past 15 years, AA has succeeded in design, interior decoration and wooden products in Vietnam. Could you share your company’s experience as well as key to the successes?
Our company has more than 70 engineers, architects and designers who are all devoted to bring customers a perfect living and working space by high-quality products and services. For many years, AA has operated in the three main areas of design, interior decoration and furniture import and export. The company now takes the first position in the design, product and retail of high-quality wooden products for both local and foreign markets with brands such as Nha Xinh, AA Deco and Bellavita.
Nha Xinh is the leading retail furniture brand in Vietnam, aiming at local people with medium and high income. Nha Xinh products include sofa and wooden furniture for dining room, kitchens. Currently, AA has two Nha Xinh shops in HCM City and one in Binh Duong, one in Da Nang and one in Hanoi. Besides Nha Xinh, other furniture brands in Vietnam are Home Décor and I-Box. Each targets at its own client and has gradually affirmed its position in the market. Despite gaining many successes, Nha Xinh has not yet been considered as AA’s top product. Until AA Deco and Bellavita were rolled out, AA brand has really drawn the industry’s attention. AA Deco is a luxury wooden product brand produced under orders. Coming to AA Deco, customers will find both traditionally and modernly-designed products which is made from natural wood. AA Deco presently has two showrooms in Ho Chi Minh City and Da Nang. In 2007, AA launched Bellavita brand which specialises in distribution of wholly European-originated famous furniture. Bellavita brings customers special characters and modernity of European famous products. Bellavita now has two showrooms in Ho Chi Minh City and Hanoi.
During the operation process, we always paid attention to every detail of products as well as high-quality products with cultural identity. This is AA’s goal to make differences between other regional exporters. Presently, AA wooden furniture is mainly produced at a 12-hectare factory in Duc Hoa district, Long An province and the other at district 9, HCM City.
2008 is regarded as a year for the Vietnamese economic development and the wood industry made a remarkable contribution to the development. What are AA’s achievements?
Last year, the Vietnamese and global economy saw many changes. Many wood businesses faced lots of difficulties, bankruptcy or were on the verge of liquidation. Since the beginning of the year, AA has concentrated on diversifying the designs, aiming to reach the products’ sophistication. We have changed our business strategy with focus on high-quality products to serve hotels, conferences and many big markets such as Europe, the US and the Middle East. By the end of 2008, while lots of enterprises were struggling with difficulties to keep their foothold in the market, we received an important contract from the Middle East. The Kuwaiti government sent an airplane to Vietnam to transport AA’s cargo to serve an international conference held in the country under a contract signed between the sides. This showed that AA overcome difficulties and affirmed its status in the market. The firm earned revenues stable revenues in the year, up 40 per cent on-year.
Nha Xinh and Bellavita have helped AA to affirm its foothold. What makes AA brand in general and Nha Xinh in particular?
AA always takes initiatives in its products, while most of furniture retailers often remain passive in production factors such as quality, design, colour, material and time to market products. The majority of the retailers have to import finished wooden products from Malaysia, Thailand and China, therefore, they have to follow product design and specification set by producers and have no their own characters. Besides, it takes customers at least 6-10 months to buy new imports, while Nha Xinh always introduces new products suitable for different living spaces.
Additionally, AA catches the market’s regulations and customers’ taste. Thus, it is designers that make breakthrough designs which will play a key role in product successes. AA has spent much time to seek and select qualified designers.
Being Deputy Head of Handicraft and Wood industry Association (Hawa), what are your comments about the wood industry’s development this year and the coming time? What do you want to share with wood firms?
In my opinion, in spite of many challenges, the wood sector remains Vietnam’s key area in 2009 and the years to come as it creates more jobs for labourers than other sectors. It is time for the government and wood enterprises to join hands to deal with current difficulties.
As for AA, we expect to share difficulties with businesses in general and wood processors in particular. Despite changes in several markets like the US and Japan, Vietnamese wood companies still see chances to expand their export markets. In the upcoming time, the firms need to focus on highly-competitive products. Vietnamese businesses have flexible business strategies over the past time, thus, they found markets which are little impacted by the global economic crisis. It is important for the companies to explore new markets and make sophisticated products to satisfy customers’ need.
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