CT&D Group: Growing with Vietnam

Since 1989, companies of Central Trading & Development Group, or CT&D, have grown up with Vietnam and Ho Chi Minh City. The Group has developed three key projects in Vietnam, namely Tan Thuan Export Processing Zone, Hiep Phuoc Power Company, and South Saigon - Phu My Hung Urban Zone. It has cooperated to zone 3,300 ha of land in the South Saigon area, which has a total investment capital of over US$700 million.

 

To assist Vietnam to develop its economy and Vietnamese people to lead a better life, CT&D Group successfully applied the Taiwan’s form of export processing zone to Vietnam. It worked with Tan Thuan Industrial Promotion Company, which represented the Ho Chi Minh City People’s Committee, to set up Tan Thuan Export Processing Zone Construction and Trading Joint Venture Company. This is the first export processing zone in Vietnam, creating 60,000 career opportunities and 10 per cent of forex reserves for Vietnam. At present, Tan Thuan is the most successful export processing zone in Vietnam and is also the world-class destination for investors. By the end of 1995, Tan Thuan was invited to join the World Economic Processing Zones Association (WEPZA), becoming one of 34 members of this organisation. In December 1997, the zone was awarded the Certificate of Merits from the Prime Minister of Vietnam. In 1999, it was voted the best export processing zones in the Asian - Pacific region by the UK-based Corporate Location Magazine. The Tan Thuan Export Processing Zone was conferred the second-grade Labour Medal in September 2001 and the first-grade Labour Medal in January 2006. In 2000, the zone completed all necessary construction works designed for housing more than 200 factories where more than 100,000 people can work. At present, the Tan Thuan Export Processing Zone is attracting hi-tech companies to invest in factories and participate in e-Office Park zone, also located within the zone.

 

To supply sufficient electricity for the Tan Thuan Export Processing Zone and the South Saigon Urban Zone, CT&D Group has invested in building the Hiep Phuoc power plant. In the initial period, the facility supplied 45 per cent of Ho Chi Minh City’s power demand in the dry season. This is the first wholly foreign-owned power plant in Vietnam, the only B-O-O (Build - Operate - Own) electric plant in Vietnam and the first of its kind in Vietnam to get the ISO 9002 certificate.

 

The South Saigon - Phu My Hung has a total planned area of 3,300 ha. This is the largest new urban zone planned in Asia. During a visit on February 26, 2009, late Prime Minister Vo Van Kiet ordered Ho Chi Minh City’s authorities to develop the city southwards. On December 8, 1994, he approved the master plan of the South Saigon Urban Zone. In December 1997, the project was honourably conferred the Certificate of Merits, affirming achievements of Phu My Hung and its contributions to the Vietnamese society and economy. Houses in Phu My Hung New Urban Zone are pleasantly beautiful and modern, with all necessary utilities like roads, cultural and educational establishments, recreational services, shopping centres, clinics and schools. This urban zone won the American Institute of Architecture’s Urban Design Award, becoming the first urban zone in Asia to win this grand award. In December 2007, Phu My Hung Corp was honoured with the first-grade Labour Medal from the State President and in June 2008 it won the first “Model Urban Zone” title of Vietnam from the Ministry of Construction.

 

Apart from the above-mentioned three big projects, the Lawrence S. Ting Foundation of CT&D Group also actively assisted the Vietnamese people to pursue a better life. It launched many charity activities like giving medical aids to lip-cleft patients, cataract patients and patients suffering hydrocephalus, silently providing educational opportunities and more than 10,000 scholarships to poor students, carrying out the “advancing with IT” programme, financing computer labs in all 64 provinces and cities in the country, providing computers, internet connection devices and projectors to high schools where 120,000 students are studying. The foundation also established Dinh Thien Ly (Ferdinand P. Tsien) High School which started operating in September 2008 and enrolled 220 students in the first academic year. The school planned to enrol 1,200 students in the second academic year. Dinh Thien Ly is the first Vietnamese school allowed to carry a foreigner’s name by the Government after the national reunification in 1975. Besides, the Lawrence S. Ting Foundation also granted 3,000 wheelchairs for Vietnamese people, an activity to promote the corporate social responsibility.

 

On every Saturday, after meeting with managers, Mr. Huang Ruey Der, General Director of Tainan Spinning, quickly walks to workshops to examine their operations.

After nearly 14 years doing business in Vietnam, Mr. Huang is very happy to create a resounding career with seven good-performing factories in Dong Nai province, making his company an icon for Taiwanese companies in Vietnam and more importantly creating stable jobs for nearly 4,000 people. However, for him, these admirable feats are not enough and he wants to try for more.

In 1996, Tainan Spinning surveyed Vietnam to seek business opportunities. Mr. Huang as well as other members found Vietnam to have many things in common with Taiwan culture, tradition and custom and to be a promising location for investors. They decided to set up factories in Vietnam and started operations in spite of numerous difficulties in troublesome investment procedures, incomplete infrastructure systems, and complicated import and export formalities. But things gradually got better following a broader and deeper reform of Vietnam as well as thanks to efforts of Tainan Spinning’s staff.

According to Mr. Huang, product quality, punctual delivery and satisfactory service of his staff has lengthened the list of customers. Clearly, the successfulness of an enterprise starts from effort of individuals and Mr. Huang has contributed to the success of the today Tainan Spinning. He is a hardworking, friendly and caring Taiwanese businessman.

More factories and more spindles shorten his free time. He works like a shuttle. Every day, he moves from the office in Ho Chi Minh City to Tainan Bien Hoa - Dong Nai factories, and then to Namtex Knitting and Dying Company in Nhon Trach Industrial Park (this factory turns out over 700 tonnes a month, where is the Chairman of the Board of Directors). He works like a spinner that brings Tainan Spinning Co. Ltd from success to success.

Tainan started with the capacity of 50,000 spindles in 1997 and rapidly expanded up to 290,000 spindles by 2005. To meet the needs of global and local buyers, Tainan has 520,000 spindles currently, processing 8,000 tons of yarn each year. Presently, up to 70 per cent of the company’s output is for export, mainly to African nations and ASEAN countries, especially South Korea, the Philippines and Malaysia.

Tainan always invests in upgrading its spinners. By the end of December 2008, it spent US$155 million for five spinning plants in Vietnam.

At present, the salary paid to the company’s workers is 1.5 folds higher than other factories in the locality. Tainan also grants scholarships for technical students. It also operates entertainment areas for its staff and develops green areas in its factory campuses.

With its active contributions to the development of the Vietnamese textile and garment industry, Tainan has honourably been awarded a variety of prizes, including the Saigon Times Top 40 Award for 40 best wholly foreign-owned companies by Saigon Times Newspaper in four consecutive years; the Golden Dragon 2006 by Vietnam Economic Times Newspaper and the enlisting on the top 232 outstanding textile companies with high export revenue and FOB export by Ministry of Industry, the Vietnam Chamber of Commerce and Industry (VCCI) and Vietnam Textile and Apparel Association (Vitas).

Personally, Mr. Hoang sees the trust of customers as the highest laureate as it helps strengthen his company’s development and production, improve living standards of his staff and contributes to the development of the business community in Vietnam.