Truong Thanh Furniture Corporation - Reaching a New Height in International Market

Truong Thanh Furniture Corporation - Reaching a New Height in International Market

In recent years, Vietnam's wood export turnover has seen a high growth rate and many local manufacturers have found a foothold in the international market. The Truong Thanh Furniture Corporation is one of the pioneers in this industry. With high-end products, Truong Thanh has become a prestigious trademark, which has become a favourite choice of hard-to-please customers around the world.

Opportunity and suitable redirection

In 1993, Truong Thanh is a small workshop in Dak Lak with only 30 workers. The workshop could manufacture a small volume of products for some small construction works. In 1999, Truong Thanh had a new beginning as its owner Vo Truong Thanh returned home after finishing a two-year MBA training course in the US under a scholarship granted by the Vietnamese and American governments. With his knowledge and experience gained in the US, Thanh and his assistants have made a breakthrough for the enterprise.

Building quality system

To win in the export market, Truong Thanh paid a careful attention to the building of a quality system in accordance with international standards. Accordingly, the corporation has invested in renewing technology and equipment with machines imported from Italy, Germany, Japan and Taiwan. The corporation’s production process has been controlled by the directorial board and quality control boards in line with the European and Japanese standards. The corporation has set up the CoC and ISO 9001:2000 systems and applied them in all its factories. Its 40 internal evaluators have been trained by SGS of Switzerland and BVQI of the UK.

Another factor, contributing to raising Truong Thanh’s prestige is its commitment on environmental protection. Wood materials have been exploited with licences by local governments. In Vietnam, Truong Thanh has developed sustainable material supplies by taking part in forest sustainability control (FSC) activities.

The corporation has 4,000 skilled workers and over 500 cadres and staff members. Thanh said that the corporation had always attached importance to training its staff members to help them update knowledge. He went on to say that he hope local authorities would create more favourable conditions for his corporation, so it could build houses for its cadres and workers. The corporation has also given its attention to developing its enterprise culture.

Alongside stabilising and improving the effectiveness of its factories, Truong Thanh has concentrated on developing its trademark by giving a careful attention to each detail on catalogues and website, professionalising trade promotion activities, and joining international fairs. Also, the company focused on market study to further improve the quality of its products to meet the customers’ demand.

High growth rate

The efforts made by the corporation have paid off as it has gained a high growth rate. From a small workshop, Truong Thanh has expanded its production activities with six factories in Dak Lak, Binh Duong, Ho Chi Minh City and Laos. In second quarter of 2005, its seventh factory will be put into operation in Tan Uyen district, Binh Duong province. Total area of factories has reached 240,000 square metres, including 100,000 square metres of the Laos-based factory. The corporation’s capacity has reached 2,000 containers per year in 2005. Truong Thanh has various products of various designs within its three main kinds, such as furniture, floor and board made of teak, parashrea stellata, pine, rubber trees, eucalyptus, and iroko, jatoba, hard wood of the US and FSC wood imported from South Africa and the South America. The corporation has exported its products to the UK, France, Germany, Finland, Denmark, Greece, Australia, New Zealand, the US and Japan. Truong Thanh is a strategic partner of world leading distributors, such as Walmart, Carrefour, Cosco, Keisko, Alexander Rose, and Hartman. Recently, the corporation has concentrated on the local market. Revenues from local consumption are expected to reach 20 per cent of the corporation’s total revenues. Its output in 2004 reached 1,500 containers, doubling that of 2001. Its revenues were put at US$19 million, or 2.1 fold higher than 2001.

Affirming prestige

In recognition of its achievements over the past ten years, Truong Thanh was granted the Red Star Award in 1999, the Prime Minister’s certificate of merit in 2003, the Vietnam high quality prize in 2002, the Vietnam Gold Star Award in 2003, and a certificate of merit by the Ministry of Trade for its export excellent results and a certificate of merit by the Ministry of Finance for completing its tax contribution, as well as many other awards from authorised agencies. Having closely followed its motto ‘high quality, competitive price, timely delivery, innovation, and the best service' Truong Thanh hopes to raise itself to a new height in the international market.

• Hoang Lam