Neo Floor Joint Stock Company: Transforming Challenges into Growth Opportunities

1:28:28 PM | 6/30/2024

Established in 2020 amidst the challenges of the global COVID-19 pandemic, Neo Floor Joint Stock Company has swiftly emerged as a dynamic enterprise, garnering significant appeal and cultivating a strong global customer base, particularly in the highly competitive US and European markets.

This achievement stems from proactive investments in cutting-edge technology across our production and business operations, transforming raw materials into high-value consumer products. Mr. Mai Thanh Phuong, Chairman of the Board of Directors, emphasized that Neo Floor's strategic choice of Hai Phong as its launching pad ensures continuous growth, promising optimal contributions to the overall development of Hai Phong City.

Neo Floor is firmly committed to fostering its partnership with Hai Phong city and contributing to local development

Could you share about your outstanding marks on the development journey?

Reflecting on our journey of development, the first five years (2020-2024) have been a difficult period for us. We navigated the competitive landscape of the materials technology industry, both domestically and internationally, amidst global geo-economic and geopolitical uncertainties stemming from the COVID-19 pandemic. Throughout this challenging phase, from our Board of Directors to our staff, we have embraced challenges as opportunities for growth.

Neo Floor has focused on producing high-tech applied products aimed at the export market. Over 70% of our SPC flooring products utilize stone powder sourced from quarries owned by Neo Floor, leveraging advanced technologies to elevate these raw materials into consumer goods renowned for their exceptional quality and safety. These products consistently exceed the stringent standards of demanding markets such as the US and Europe.

The widespread adoption of Neo Floor's high-tech offerings is evident through our presence in over 6,000 retail outlets across major US supermarket chains like Home Depot and Floor & Décor. Our commitment to innovation and alignment with consumer preferences has solidified Neo Floor's position in championing Vietnamese brands, transforming inexpensive raw materials into high-value consumer products.

Fueled by our rapid expansion, Neo Floor commenced the construction of Manufacturing Factory No. 2 in the Dinh Vu-Cat Hai Economic Zone at the close of 2023, slated for inauguration in July 2024. This facility is poised to leave a significant imprint, bolstering our pursuit of "Crystallizing the value of Vietnamese resources" and fortifying Neo Floor's trajectory toward sustained growth.

Neo Floor is a major player in the material technology sector, specializing in the production of cutting-edge high-tech products aimed specifically at export markets

How have you embraced digital transformation?

From its inception, Neo Floor has recognized digitalization as pivotal to its sustainable growth strategy. Beyond integrating technology into production and business processes, digital transformation has become an indispensable mandate to meet the demands of global economic integration.

To establish a robust framework for comprehensive digital transformation, Neo Floor has committed to investing in an enterprise-wide ERP (Enterprise Resource Planning) system to streamline and manage its business operations. The implementation of SAP B1, achieved swiftly amidst challenges, underscores our Board of Directors' resolute leadership and the unwavering dedication of all departments. This milestone with SAP B1 marks a significant achievement, affirming our vision, determination, and market position, while heralding a critical juncture in Neo Floor's digital journey.

Moreover, Neo Floor has successfully launched an online collaboration platform, bridging spatial and temporal divides, and a real-time reporting system that empowers managers with immediate data insights for swift and effective decision-making. Additionally, our WMS (Warehouse Management System) production management app optimizes raw material procurement and daily, weekly, and monthly production planning, ensuring real-time cost management and detailed KPI reporting across departments to drive continuous improvement.

By heavily investing in both human capital and technological infrastructure for digital transformation, Neo Floor has significantly enhanced productivity. Neo Floor's pioneering Vietnamese materials technology, developed at our R&D center in the Dinh Vu-Cat Hai Economic Zone, has gained international acclaim, penetrating markets in the US, North America, and Europe. Currently, our export capacity stands at 20 million square meters annually, with a targeted increase to 45 million square meters by 2025.

Neo Floor's products consistently exceed the stringent standards of demanding markets such as the US and Europe

Neo Floor not only prioritizes production and business excellence but also places a strong emphasis on enhancing the welfare of its employees. Could you elaborate further on this?

Neo Floor's workforce spans 1,500 employees distributed across its network of manufacturing facilities nationwide, with over 50% classified as knowledge workers. Central to maintaining system stability and coherence is the company's steadfast focus on cultivating corporate culture, viewed as a guiding principle for growth.

At Neo Floor, we have fostered a corporate ethos of "collaboration and shared prosperity," linking employee well-being directly to business advancement. We empower managers at all levels with significant autonomy to foster creativity. Currently, our direct workers earn an average monthly salary of nearly VND15 million, while indirect workers earn nearly VND20 million, aligning with standards set by foreign direct investment enterprises in Vietnam.

Recognizing that quality human capital is pivotal to sustainable development, Neo Floor prioritizes enhancing employee welfare. In addition to mandatory social and health insurance provisions, our proactive approach includes regular medical check-ups at specialized facilities. Collaborating with BIDV - Metlife, Neo Floor has implemented a comprehensive "Health Insurance" program for all employees, and introduced "Life Insurance" coverage for managers with over one year of tenure. Notably, in October 2023, BIDV - Metlife disbursed over VND400 million in insurance benefits for a manager hospitalized due to illness.

Safety is paramount in Neo Floor's operations, overseen by a safety department that upholds stringent safety standards throughout the production management process.

As a globally integrated enterprise, Neo Floor integrates best practices from diverse cultures worldwide into its operations, ensuring each employee understands the global impact of their contributions. This inclusive approach instills pride in every team member, regardless of their role, knowing their efforts resonate with consumers worldwide through our products.

Neo Floor's proactive investment in human resources extends beyond skills enhancement and management training; it includes prioritizing employee health and fostering a supportive work environment. Our commitment is to ensure every employee feels secure and valued, making Neo Floor not just a workplace but a true home for all.

Neo Floor actively engages in volunteer activities 

How do you assess the investment climate in Hai Phong, and what recommendations would you offer city leaders regarding legal procedures and business support?

From its inception, Neo Floor strategically selected the Dinh Vu-Cat Hai Economic Zone as the site for its inaugural manufacturing facility, a decision validated by our continuous success and growth trajectory. Our experience in various domestic and international regions underscores the pivotal role of choosing the right location and timing for launching operations. We highly appreciate the City Government for fostering a robust and equitable investment environment that supports competitiveness within the region.

Hai Phong consistently ranks among the top localities in the Provincial Competitiveness Index (PCI), reflecting its dynamic approach and adherence to regulatory frameworks set forth by the City Government and Economic Zone Management Board. We believe Hai Phong holds great potential as an ideal investment destination for enterprises and investors alike, poised to drive economic development and emerge as a formidable economic hub in the northern region of Vietnam.

Thank you very much!

Source:  Vietnam Business Forum