Phugatex Weathering the Storm for Stronger Brand

After 14 years of development, Phu Hoa An Garment and Textile Joint Stock Company (Phugatex) has constantly expanded its scale, improved its production capacity and increased its reputation, thus gradually joining more deeply in the global textile supply chain, Mr. Le Hong Long, Chairman of the Board of Directors, General Director of Phugatex, said in an interview with Vietnam Business Forum.

Could you introduce your outstanding business performance in 2021 and the first half of 2022?

Phugatex was established on June 8, 2008 and put into official operation on January 1, 2010 with six sewing lines and 300 workers. In the past 14 years, we have taken advantage of every opportunity and utilized every resource to invest in production expansion and business capacity building.

Currently, we have four factories with 50 sewing lines and 2,200 employees. All factories are equipped with modern machines such as cutting machines, automatic spreading machines, single-needle sewing machines, two-needle sewing machines, overlocking machines and lacing machines supplied by famous brands such as Bullmer, Brother, Juki and Siruba. Phugatex adopts FOB production, directly makes jackets, polo-shirts, T-shirts, nightwear, and men's and women's underwear for popular fashion brands such as Champion, Polo-Lauren, Gear, Oxford, Columbia and Carhartt. Every year, the company exports 10-15 million products (for US$30 million) to the United States, Japan and other countries.

In 2020 and 2021, hard hit by the COVID-19 pandemic, we managed to foster business operations to ensure stable jobs and incomes for employees. In particular, in 2020, we also started construction of a new garment factory and put 24 sewing lines into operation in the fourth quarter of 2021, creating 600 more jobs.

In 2022, Phugatex has continued to follow closely, and embrace market trends, demands and prices to opt for optimal product structure, maximize capacity, and ensure the highest business efficiency.

The construction of Export Garment Factory 2 in August 2020 amid the raging COVID-19 pandemic was a rather risky decision. Would you share more about this project?

To strengthen production capacity and competency to meet customer requirements, domestic and foreign market demands, and contribute to the sectoral growth, Phugatex started construction of Export Garment Factory 2 with a workshop area of 17,500 square meters. The factory was kicked off in August 2020 in the context of the complicated development of the COVID-19 pandemic, which was a difficult and risky decision. During the construction period, we faced numerous challenges but, with the utmost determination and endeavor, we managed to complete the project on schedule.

In September 2021, the factory was basically completed and gradually put into production. Upon its completion, the company rearranged its entire production site and warehousing system and equipped it with automatic machinery to take any new orders. At the same time, as the pandemic raged viciously in Ho Chi Minh City and southern provinces, many workers in Thua Thien Hue province lost their jobs and returned to their homeland.

In just a short time (the fourth quarter of 2021), Phugatex recruited 600 more workers, meeting its production orders and easing problems for southern manufacturers which had to halt their production to contain the pandemic contagion. Overcoming these challenges to stand on firmer ground, the successful factory inspired and created confidence and strong motivation across the company and affirmed Phugatex's reputation in the market.

Could you tell us about your brand building?

To continue building a brand name and become a prestigious producer in the global textile and garment supply chain, we have adopted technological innovations, and invested in modern machinery and equipment to enhance product quality and labor productivity such as automatic spreading machines and cutters made by Bullmer of Germany; programmed bag sewing and dissecting machines; modern automatic sewing machines made by Brother, Juki Siruba, Shingling, Jack and Zoje; Jack large and small format programming machines; and Tashima embroidery machines (Japan).

In addition, we have cooperated with universities and colleges to organize skill training for team managers, intermediate vocational training for technicians, quality control staff and specialists; and with Vietnam National Textile and Garment Group (Vinatex) to open management training courses.

Phugatex always steadfastly pursues its goals. We have built a sustainable development strategy based on our actual performance and forecasts of the industry's development. We have been flexible, creative and adaptive to actual situations.

By continuously improving technology and seeing labor productivity enhancement as an important factor to ensure stable wages for workers and efficiency for businesses, the company always achieves high productivity, increases price competitiveness and builds credibility with customers.

In particular, Phugatex always receives the attention and support of the local authorities, and relevant agencies, particularly when it carries out new investment projects, enabling it to complete and bring its projects into operation quickly.

Thank you very much!

By Vietnam Business Forum