TNG Persistently Pursuing Sustainable Development Strategy

2:20:40 PM | 5/15/2023

Starting from a garment factory with only two production lines, TNG Investment and Trading Joint Stock Company has now become one of the 10 largest textile and garment producers in Vietnam with 18 branches and 322 sewing lines. This success results from the sustainable development strategy that the Company has persistently pursued. To find out more, our reporter has an exclusive interview with Mr. Nguyen Van Thoi, President of the Board of Directors of TNG.

Could you please introduce the 4-decade development journey of TNG?

TNG, formerly Bac Thai Garment Factory, was established in 1979. In 2003, the company went public. In 2007, its shares were listed on the Hanoi Stock Exchange, with the ticker symbol of TNG.

In more than 40 years of development, TNG has more than 322 sewing lines in 18 branches (15 garment branches, two cotton-supporting production branches and one software technology branch) with over 17,000 employees. Annually, TNG produces over 55 million products, of which jackets, children's clothing and shorts account for 60%, 30% and 6%, respectively.

TNG's partners are world-renowned fashion brands and retailers such as Decathlon, Columbia, TCP, Nike, Adidas, SportMaster, C&A, Tomtailor and Comtextile. Its products have been present in more than 48 countries and territories. Its main export markets are the United States (40% share), the EU (France and Germany, 40%), Russia (10%) and others (10%).

With unremitting efforts in production and business, TNG has achieved many noble titles such as Top 10 Largest Vietnam Textile and Garment Exporter, Top 10 Most Sustainable Business in Vietnam in 2022 in Manufacturing Category awarded by VCCI, Top 53 winners of Vietnam Digital Awards presented by the Vietnam Digital Communication Association (VDCA).

To reach today’s success, what is the business philosophy and core values that TNG has pursued?

Over 40 years of development, TNG is known as a "slow but sure" business. TNG's business philosophy is "for people". The company can be both trendy and sensitive, but never hasty to make decisions just for short-term benefits. In business operations, the company always upholds the slogan "TNG - All for the happiness of employees and trust for customers".

Defining employees as a vital element of the business, TNG always places employee interests above all. In addition to maintaining stable employment for its employees, who are paid an average monthly salary of VND9-10 million, the company applies all employee policies like fully paying social insurance, health insurance and unemployment insurance. Moreover, the company also organizes other activities like Tet bonus, gifts to employees in difficulty and travel programs to inspire employees to work with peace of mind.

Every year, the company organizes contests to find excellent workers and brilliant equipment managers, continuously sends employees to attend training courses, and opens in-house training classes. Therefore, its employees have better skills to handle situations in production and enhance productivity and product quality to meet the increasing requirements of customers.

TNG also actively funds a lot for social security, charity, gratitude and poverty alleviation activities.

In particular, “coupling business development with environmental protection” is one of the core values that TNG always aims for. The company constantly strives for comprehensive sustainable development in economic, social and environmental aspects.

Would you tell us more about the core value of “coupling business development with environmental protection” as well as TNG's sustainable development strategy?

Opting for sustainable development, TNG constantly researches, approaches modern science and applies cutting-edge technology to bring useful green products to the community. Currently, TNG has cotton products/PE bags made from recycled materials. The company cuts CO2 emissions by using electric furnaces. By installing modern machinery and equipment and green facilities, the company can both economize fuel and increase the use of products with low VOC and formaldehyde contents to ensure employee health.

Fostering the circular business, TNG uses recycled materials and minimizes emissions and wastewater from its business activities. The company has reduced the amount of coal used for production by 10%. About 50% of TNG's electricity consumption is renewable and this figure keeps growing. Unused materials are collected as inputs for other products to create a new product life cycle.

Furthermore, the company also spreads the "green" spirit with many meaningful projects. In 2019-2020, the company constructed Vo Nhai green factory in accordance with Leed standards and TNG Song Cong Auxiliary Factory in accordance with LOTUS Green Building Certification for the following criteria: Energy efficiency, water conservation, environmentally friendly material, a green ecosystem, and waste and pollution management.

Especially, TNG Village Apartment is a typical model of waste reduction.

In the current context, digital transformation is not only a vital trend but also a requirement for sustainable development. How is this trend implemented in TNG?

TNG has cared about digital transformation since 2007. The company has invested, upgraded and automated machinery, equipment and manufacturing technology like automatic fabric spreading machines, automatic cutting machines, programming machines and smart warehouses to reduce a lot of paperwork, and manage warehouses, supplies and raw materials to enhance ease of use and convenience.

Besides his efforts to lead TNG, Mr. Nguyen Van Thoi is also active in social responsibilities. As a member of the VCCI Executive Committee and Chairman of Thai Nguyen Business Association, he always shows a sense of responsibility and dedication and promotes the role of linking the business community and entrepreneurs for joint development.

Notably, at the beginning of 2022, TNG expanded its business operations and recruited personnel for the Robot Department; and established more "TRE Technology Solutions Branch". This can be considered a new step for Vietnam's textile and garment industry to adopt management solutions for input materials and output products and bring a comprehensive view of human resources, productivity and work performance.

Clearly, digital transformation has enabled TNG to automate many production stages, enhance labor productivity and increase revenue. As a result, indicators of labor productivity, revenue, profit, sales and other parameters have continuously grown over the years. In particular, the inventory index decreased to less than 0.2%, compared to 4% in 2010.

Thank you very much!

Source: Vietnam Business Forum