Binh Minh Garment Co: Top Quality

3:26:19 PM | 7/8/2005

Not only famous for its exported shirts, Binh Minh Garment Joint Stock Company also supplies knit-wear and sports-wear. Dynamism in its business activities and its priority for quality, the company continues to record successes in the market.

Entering the Japanese market with the ITOCHU group in 1992 through a contract to supply shirts, the Binh Minh company has focused on quality, particularly as the Japanese are particularly discerning consumers. To ensure quality the company, with the assistance of its partner, has upgraded its equipment, factory and quality management. All materials imported from Thailand, Indonesia and Malaysia have to be handled manually before being sent to the production line in order to avoid faults in the yarn and colour. After several years of determined efforts, ITOCHU has full confidence in the products of the company. In addition to its shirts, the company also exports knit-wear, sports-wear, jackets and children-wear. Although Japan has up-market tastes, it is a stable and non-quota market. For this reason, after entering the Japanese market, the company introduced a new slogan: “The prestige of the company will be proved by the quality of the products.”

Upgrading technology

In 1999 the enterprise became the first unit of the Vietnam Textile and Garment Corporation to be equitised and was subsequently transformed into the Binh Minh Garment Joint Stock Company (BIGAMEX). The company has a workforce of over 3,000, plus 2,500 machines and a workplace of 20,000sq. m in Ho Chi Minh City and Hanoi. Binh Minh has seven member enterprises and two computerised printing and embroidery workshops producing diversified items. Following equitisation, the company has always ensured the quality of its products using modern equipment and a specialised production line. With its traditional products of shirts, polo-shirts, sports-wear and children-wear the company has expanded into new markets in the US, the Middle-East and SNG countries.

Market expansion

In the first half of 2004, Binh Minh recorded a high growth rate and attained a turnover of over VND100 billion, an increase of 19.85 per cent over the same period last year, and constituting 50.01 per cent of this year’s plan. The export turnover reached VND90.65 billion, the sales value hit VND60.53 billion; its industrial value stood at VND24.89 billion and its output climbed to 2.76 million products. Exports to major markets in the past six months were also successful with 50 per cent of products heading for Japan, 31 per cent to the US and 19 per cent to the EU and other countries.

However with limited quotas, the company has had to sign contracts with clients failing to implement FOB contracts. Furthermore, increased costs in contractual production have cut the company’s profits. Like other enterprises, Binh Minh has a problem with labour. Unlike in the past, when workers had to pay fees for their training, the company now has to provide each trainee VND250,000 for a 2-month training course. However, the labour force has been cut by 20 per cent compared to the beginning of 2004.

Regardless of difficulties, the stable growth in the past years will help the company develop in the future. Currently, the company is building a factory in Binh An (Binh Duong province) and is applying the new SA 8000 management system. Between 2005 and 2010, the company will move to Binh An IZ on a three hectare area to ensure a complete system of production for market expansion.