Artimex Aims to Expand Export Markets

Artimex Aims to Expand Export Markets

Nghe An Fine Arts Joint Stock Company (ARTIMEX), formerly named Nghe An Fine Arts Import-Export Services Supply Company, was established pursuant to Decree No.388 dated October 13, 1992. ARTIMEX will celebrate the 20^th anniversary of foundation on January 17, 2005. The company focuses on producing and purchasing local industrial and handicraft products for export and transferring them to the Central Import-Export Corporation for exporting under the Protocol signed between Vietnam and SEV countries.

ARTIMEX faced innumerable difficulties when Vietnam shifted towards a market-oriented economy from the centrally planned one and its traditional export markets remained unavailable. Under the circumstances, the company targeted to promote existing resources, and utilise external strengths to make large-scale investments in the production of goods for export, generating high quality and competitive products and developing the ARTIMEX Nghe An trademark for consumers.

Though the company was confronted by the hardship of seeking new markets, undeveloped auxiliary industries and poor concepts in goods production of labourers, it has so far built up workshops occupying an area of 30,000 sq. m, a system of state-of-the-art wood processing technology and equipment and as many as 1,000 employees who are capable of earning annual export turnover of US$5-7 million. Notably, its fine quality products have won many Gold Medals at international trade fairs. The products bearing the ARTIMEX Nghe An trademark have gained customers' confidence and reached most countries around the world over the past years.

ARTIMEX Nghe An has taken the initiative of conducting privatisation following the guidelines released by the Party and State and operated under the Corporate Law since May 2003. The company to date owns a total working capital of VND50 billion (US$3.2 million), of which the company’s equity represents 30 per cent, loans from foreign partners 32 per cent and the remaining 38 per cent from Vinh city branch of Vietcombank.

The company attained a respective turnover and profit of VND45.5 billion (US$2.89 million) and VND361 million (US$22,994) in 2002, VND46 billion (US$2.93 million) and VND450 million (US$28,662) in 2003 and VND24 billion (US$1.53 million) and VND250 million (US$15,924) in the first half of 2004. It reached an export turnover of US$2.4 million in 2002, US$2.51 million in 2003 and US$1.36 million for the first six months of 2004.

To obtain these results, ARTIMEX Nghe An has set proper production and business targets and managed to fulfil them. The two development phases are outlined as follows:

Phase 1: goods are made to order.

Phase 2: after developing prestige, trademark and gaining consumers' credit, the production scale will be expanded to meet the market needs.

In its operations, ARTIMEX Nghe An always places top priority on meeting its commitments to local and foreign partners. The company works hard to pursue its set targets and gears towards strategic products so that the ARTIMEX Nghe An trademark can become a symbol for the growth of handicrafts in Nghe An city in general and in the domestic market in particular.

The company is also determined to expand its export market, continuously affirming its product range, design and quality to its existing clientele. It plans to approach new customers and increase its market share in other countries. ARTIMEX Nghe An will actively participate in international trade fairs and exhibitions, and send its staff abroad to study potential markets. The markets must be suitable to the company's capacity and be conducive to high economic efficiency. Besides the traditional markets of Taiwan, Japan, Canada and the US, it targets European countries including Germany, France and the UK.

Though the handicraft sector currently generates a large amount of foreign currency for Vietnam, the enterprises still face some obstacles, especially sourcing raw materials for the production of handicrafts.

ARTIMEX Nghe An is fully aware of the vital role of stable material inputs for the company. To create stable jobs for 1,000 employees, the company actively hunts for material sources from domestic markets as well as from Laos, Malaysia, and other countries.

The company hopes to obtain permission from relevant departments and branches to purchase materials in several places including the provincial market as the first solution. If the relevant bodies manage to allocate land for afforestation and plant trees for timber in regeneration forests, many extra jobs will be generated for local unemployed labourers and the company will have a stable material source for production and export.

• Kim Dung