Established in 1956 under the Ministry of Trade, the Cau Giay Trade Joint stock Company specialises in retail sales of consumer goods and restaurant services. The company was converted into a joint stock company in 2000 with over 160 shareholders, who are cadres and workers of the company. The company has expanded its business activities as a supplier of construction materials, consumer goods, electronic goods, and a provider of office leasing and tourism services.
Nguyen Duc Tuyen, director of the company, said: “It was an important landmark for us when our company was equitised in 2000. Cadres and workers of the company are now shareholders. This has encouraged them to exert further efforts for the development of the company.”
Despite facing many difficulties after it was equitised, the company has achieved great successes thanks to its suitable development strategies. Its retail sales in 2004 reached VND 80 billion. The company spent 22 per cent of its profit paying dividends. The company’s annual growth rate has reached around 15 per cent over the past five years. In particular, the company has been highly appreciated by the local Department of Taxation.
The company has great advantages for its business development with convenient location in the trading centre of Cau Giay district. Also, the company has great experience, having operated in consumer goods and service retail sales for around 50 years. From July 1, 2005, the company shifted its traditional distribution with shops to supermarket distribution to better meeting the consumers’ demand. “After shifting to a supermarket model, we have increased the effectiveness of land for business activities. Also, we have provided better services for our customers,” said Tuyen.
Recently, the company decided to construct two buildings, one with six storeys and another with nine storeys at 299 Cau Giay. The two buildings, capitalised at VND 90 billion, have areas of 1,400 square metres and 3,600 square metres. They are expected to start operation in the third quarter of 2006. Tuyen said: “We will use the first and second storeys for supermarket and trade centre. We will lease upper storeys and use some of them as a residential area for experts.”
The company is also completing a project on building a four-storey building at 177 Lang Road, Hanoi to trade handicrafts and provide restaurant services. The project will become operational in 2006.
Hoang Ha
Vietnamese
