Viet Hung Ready for International Integration

Viet Hung Ready for International Integration

In addition to constraints caused by the export quota on garments, Vietnam's textile-garment industry is facing more difficulties in competition with India, China, and Indonesia. Viet Hung joint-stock company is making every effort to secure a foothold in local and foreign markets in preparation for international economic integration.

Like other enterprises, Viet Hung is confronted with difficulties in the price of production materials, workforce and quota. However, with its reputation, Viet Hung can retain its traditional clients and partners. The Management Board of the company has stood by the policy initiated from its establishment, namely that investment in the company must be complete and perfect. As a result,  from a poor workshop and warehouse in its early days, the company has now a workplace of 15,000 sq. metres and capital of VND30 billion with a complete network of water supply and drainage, roads, fire prevention, etc. meeting the criteria of SA 8000. The production line has been upgraded with complete equipment and modern technology achieving certification ISO 9001:2000 of BVQI by the British government.

Mr. Phan Cong Minh, Viet Hung General Director, said that the enterprise has been upgraded and expanded with modern equipment and the workforce has increased in quantity and quality. Therefore, the company can improve and diversify its products. In the past, the company could target only low-income customers. It has now focused on fashion and office garments of high quality and suitable prices. This explains why the turnover of the company has continued to increase in recent years. The export value of the company hit US$7,170,970 in the first half of 2004 and is expected at US$18 million for the whole year.

In addition to SA 8000 and ISO 9001:2000 certification, in 2004 the company made a VND7 billion investment in equipment and workplace fittings including four production lines of US$156,000, an air conditioning system of VND176 million, a central boiler of VND283 million and modern equipment for button and label fixing. The company has also granted the children of employee Nguyen Duc Canh scholarships contributed by the managers and welfare fund of the company. Proper investment has increased the efficiency and productivity of the firm. In the coming years, Viet Hung will shift to the production of FOB commodities.

Viet Hung has initiated the idea of "connectivities" between series of companies namely Tan Chau, Viet Hung, Phuong Nam and Sao Mai. The linkage has developed to maximise the resilience of each company and the principles of mutual benefit, to be able to meet the demand of large orders and market fluctuations. The cooperation has combined specialisation and diversification, allowing each enterprise to increase its export value with stable production, a skilled workforce, high productivity and market expansion including non-quota markets. In 2003, the export value of Viet Hung attained US$17,530,000, 70 per cent more than 2002, and that of Phuong Nam was US$14 million.

While Vietnam stands on the threshold of international economic integration and faces fierce competition from regional countries, Viet Hung has made a good start and continues to be a reliable exporter.

• Doanh Thu