Calibre of VG Pipe

Since the start of 2009, Vietnam Germany Steel Pipe Joint Stock Company (VG Pipe) has used its full capacity and its employees have to follow a three-shift working to meet growing demands from customers. Mr Le Phan Duc, Deputy General Director of VG Pipe, said his company has signed export contracts for this year’s full production.

 

Since our incorporation, we determined our target customers to invest in technology, machinery, techniques and production means to create world-class products.

 

VG Pipe is now manufacturing three products of steel pipes, cold-laminated corrugated iron and screws - bolts. We are operating steel pipe production lines of Germany and the US with an annual output of 350,000 tonnes a year. Our products are mainly exported to the US, Canada, Europe and Australia. In 2008, 40 per cent of the company’s products were exported to the US and Canada.

 

Currently, the company is the first and unique producer of hot zinc-embedded pipe with a diameter of 8 inches, meeting the US quality requirements.

 

I think we can also find opportunities in challenges. The matter is how an enterprise finds its opportunities and deals with its challenges. We are successful from our ability of finding opportunities in challenges and difficulties.

 

For instance, industrial steel pipe was a new product on the Vietnamese market several years ago. But, we defined that our output was largely destined for export and we made systematic, professional and synchronous investments to satisfy the requirements in demanding markets like the US, Canada and Europe.

 

We penetrated and explored foreign markets through information channels and sales and marketing programmes. We also adopt new advancements to reduce input costs to offer more competitive products.

 

When the global economy falls into crisis, enterprises seek all ways to lower selling prices and ensure profits. However, this does not mean reducing materials or cutting staff. In my opinion, the trademark value grows with reliability. Especially, foreign customers treasure prestige and ready to boycott products made by companies without community-oriented principles.

 

VG Pipe has cut costs by boosting productivity and enhancing product quality. At present, we are applying the ISO 9001:2008 quality management system and Japan’s 5S management system to support production and product management. Our factories are neatly organised, easy to find, easy to take and easy to examine. Hence, our workers love their work more and our customers can easily explore our facilities.

Additionally, we also launch campaigns to cut costs.

 

Especially, we take the initiative in materials to reduce inventories and lending interests. We have taken the initiative in materials for cold-laminated steel. This helped us reduce some 30 per cent of inventories. Our investment for higher quality is proven by many quality awards we have won in the past three years (2006 - 2008).

 

We will maintain our export sales and expand domestic sales. We will put into operation a shaped steel pipe factory powered by Taiwan modern technologies with an annual output of 300,000 tonnes in 2010.

T.N