Huong Canh Garment Co.: Preparing for an Uncertain Future

Huong Canh Garment Co.: Preparing for an Uncertain Future

Huong Canh Garment Joint-stock Company in northern Vinh Phuc province was originally established in May 1998 after being transferred from the Huong Canh Vegetable and Seed fruit Processing Company under the Vietnam Vegetable and Seed Fruit Corporation with an  initial capital of VND7 billion. In the early years of its operation, the company struggled due to difficulties in finding customers, low skilled labour and inefficient management.

Since 2002, the company’s operation has born fruits thanks to the combined efforts made by company managers and the whole staff. In 2003, it focused on increasing the quantity of products exported to the US by reorganising production activities, modernising equipment and seeking new customers.

After equitisation in January 2004, the company has continued expanding its workshops and renewing technologies, and has paid particular attention to applying management models consistent with international standards. Its export items to the US have been qualified by the American JC Penney Group, including its two major jacket and trouser products.

To cope with the removal of garment quotas for most countries in the world in the near future, Huong Canh Garment Company is trying its best to overcome the challenges that lie ahead. One of its key methods to remain competitive in the international community is to exploit its existing advantages. With a production area of more than 20,000 sq m, the company plans to build a new 3,000sq. m workshop that will employ around 450 workers.

In the coming time, the company will maintain its market shares and customers, diversify items, including knitting garments, and widen its markets to Eastern Europe, Russia, Africa, and Asia, including the discerning Singapore market.

However, it will still face big obstacles in the near future. Inadequate domestic materials for producing exported items are forcing the company to import expensive foreign materials. A shortage of quotas will also hamper future activities. According to Director Nguyen Xuan Hoa, the allocated quotas account for only 30 per cent of its capacity.

• Minh Nguyet