Hung Long Garment and Service Joint Stock Co.: Prestigious and High Quality Products

Hung Long Garment and Service Joint Stock Co.: Prestigious and High Quality Products

The Hung Long Garment and Service Joint Stock Company in northern Hung Yen Province, the second affiliate of the Hung Yen Garment Company before 2000, was equitised in 2001 with the initial capital of VND7 billion (US$448,717). Thanks to its comprehensive investment strategy, the company has raised its capital to VND11 billion (US$705,128), owns 1,450 modern equipment units, mainly imported from Japan, and has 1,350 skilful workers and experienced staff.

Hung Long Co. now specialises in processing and fabricating trousers, jackets and swimming costumes for foreign firms such as SPEEDO of Japan, SEYANG of Korea, GAP, TARGET and JCPENY, with an average output of nearly 3 million products per annum, total revenues of VND50 billion (US$3.2 million) and VND3-4 billion (US$256,410) in profit. The four workshops of the company all run at full capacity. In May 2002, it started to trade in the US market, which now accounts for 75-80 per cent of the company’s exports.

The company targets revenue of US$48-50 million (US$3.2 million) this year, of which industrial production will make up VND28 billion (US$1.79 million) and VND800 million (US$51,282) will be contributed to the State budget. As well as focusing on improving the quality and models of products and expanding production capacity, the company ensures good living standards for its workers who receive an average salary of VND1.35-1.5 million (US$96.15) per month.

According to the Management Board of the company, it plans to invest VND20 billion (US$1.28 million) in building a second factory in 2004 on an area of 2.6 hectares, in order to prepare for WTO accession. The factory is expected to become operational in late 2005 and will create jobs for an additional 1,000 workers. Furthermore, it will seek more foreign non-quota markets and improve the quality and design of its products so as to effectively compete with fierce competition Chinese, Indian and Thai products.           

• Hai Duong