Youngone Nam Dinh Co.,Ltd - Highlight of FDI in Nam Dinh Province

Youngone Nam Dinh Co., Ltd is highly evaluated by provincial leaders and the Industrial Parks Authority as one of the Korean enterprises that directly invests in Hoa Xa Industrial Park of Nam Dinh very successfully in the apparel business. Not only good in production and business, the company also has the highest number of employees, and more than that, actively participates in social activities and charities in the locality. These are remarkable achievements during more than 15 years of operation by Youngone Nam Dinh Co., Ltd which Mr. Jinkook Kim, General Director, openly shared with Vietnam Business Forum. Ha Le reports.

What attracted Youngone Group to invest in Nam Dinh province?

First and foremost, Nam Dinh is the "cradle" of the textile and apparel industry. The people here are hard-working, clever, intelligent and dynamic; moreover, the local government as well as authorities of all levels in the province has created favorable conditions for production and business activities of enterprises, especially foreign-invested enterprises (FDI).

On top of that, Youngone (South Korea) is a global corporation in the field of manufacturing sportswear, high-class shoes and bags for world famous fashion brands and is headquartered in Seoul, Korea, and has a network of factories in Bangladesh, China and El Salvador, with the scale of hundreds of thousands of workers. Therefore, with the attraction of policy on investment of Nam Dinh province in Hoa Xa Industrial Zone, in December 2003, right after being officially granted investment license, we decided to invest in a modern chain of factories, the largest scale in the province, on nearly 50ha to establish Youngone Nam Dinh Co., Ltd. Here, we have built eight garment factories, one weaving factory, one polyester fibre factory, one merino wool factory and one dyeing & finishing factory, along with green trees, sport fields and attracts nearly 8,000 local workers.

Accordingly, our main business line is producing and processing garment, textile for world-famous high-end fashion, outdoor fashion brands and accessories for the fashion industry, Youngone Nam Dinh Co., Ltd has created stable jobs for workers, contributed to the State budget, contributed to social security stability and increased the export value of Nam Dinh province.

What achievements have you attained over the past 15 years? 

During the past 15 years, our production and business activities have continuously gained significant growth; revenue and profit increase on average 10%/year. We have created stable jobs, cared for the lives of and improved incomes for local workers, not only within Nam Dinh province, but also to attract workers from Nghe An and Thanh Hoa provinces with an average income from VND7.5 million to VND8.5 million  a month.

Moreover, we actively participate in social and charitable activities such as: Granting scholarships at universities, sponsoring medicines, and contributing to cultural and environmental events of the locality.

Due to the successful accumulation in production and business, in 2017, Youngone Nam Dinh Co., Ltd. expanded to develop a new factory in Soc Trang province.

The market is increasingly competitive, with unpredictable fluctuations, but the company still strives to achieve the target growth rate of more than 10%.

What is your plan for 2020 and the development orientation for the coming time?

Following this growth momentum, despite the complicated and unpredictable world market situation, the impact of trade wars and epidemics, we are determined to set goals to continuously strive and overcome difficulty and challenges to maintain a two digit growth rate. Accordingly, the company will apply measures to increase labor productivity, increase investment in automation, develop vertical integration (using in-house material to continue production), seek and expand to new products, new customers; ensure production along with environmental sustainability: produce raw materials from recycled scraps, invest in construction of system of waste treatment and reuse water sources; and concurrently, strictly comply with the law and pay taxes to State budget. On that basis, the company will continue to take good care and constantly improve the living quality of employees, actively participating in corporate responsibility to society (CSR).

How do you feel about the business investment environment in Nam Dinh province?

Nam Dinh is a province with a stable and safe political-social environment. The provincial leadership always creates favorable and opening support to help and promote the development of enterprises. Therefore, investors can safely deploy investment capital and run business activities. The people of Nam Dinh are hard working and resourceful. These things have helped us a lot in production and business activities.

In addition, there are factors we hope the provincial leaders will pay attention to, to improve and make the province's investment environment more attractive.

That is, the province's Public Administration Center has been established, but there is still a need to further accelerate the reform of administration procedures. In addition, when AURORA Industrial Park of the province has been approved by the Government as a textile industrial park, it is necessary to promote the attraction and development of factories in producing textile raw materials and accessories to meet the demand of input materials for enterprises, both inside and outside the province, adding more value to manufacturing plants in Vietnam.

Nam Dinh government needs to review the available manpower resources, in consideration with the density of factories located in the province. Many factories concentrated in an area of limited labor resources will cause tough competition for manpower recruitment.

The province needs to have more universities and colleges to train technical workers, skilled and qualified to meet the needs and development of businesses in the province.

When the above issues are addressed by all levels and sectors in the province, focusing on successful solutions, Nam Dinh will be even more attractive to investors and businesses, especially FDI enterprises.

Source: Vietnam Business Foru