For the Saigon-Vientiane Import and Export Company (SAVIMEX), dynamism and creativity are the key to its success. In addition, SAVIMEX was one of the enterprises, performing their equitisation in order to improve their position and trademarks in the market.
In 1990, when all local wood processing plants were using natural wood as their main production material, SAVIMEX realised that the forest coverage, which had been reduced to 23 per cent, would be exhausted very soon, thus contributing to the destruction of the ecological environment. Thus, SAVIMEX was the first enterprise in Vietnam to use rubber wood as substitute for natural wood for manufacturing items for export. The company co-operated with SHIN NIPPON and then MARUNAKA (Japan) to use its partners’ modern technologies for its production. At the same time, the company diversified its production and business activities. It opened the Savidecor plant, specialising in manufacturing furniture products for office-hotel-restaurant buildings of foreign developers. SAVIMEX was also the first enterprise to propose and to be allowed by the Prime Minister to sell shares to strategic foreign investors. This is evidence of the company’s creative policies and solutions over the past two decades.
In particular, SAVIMEX has promoted its investment in modern technologies alongside upgrading its facilities. Accordingly, the company has applied the ISO quality management system and the enterprise resources planning (ERP), upgraded its technology and equipment, and boosted its human resources development, as well as diversified export and local markets, focusing on the US and EU markets, and its traditional market of Japan. Having considered Japan as one of the strategic markets for Vietnamese enterprises in general and SAVIMEX in particular, the company has always considered the market a foundation for its development and growth. Nguyen Hoang Vu, deputy general director of SAVIMEX, said: “SAVIMEX and the Japanese market and partners have not only a good business relationship, but also close ties, alongside the formation and development of the company, and with similarities in business norms.” SAVIMEX has applied the ISO 9001:2000 quality management system and the ISO 14000 environmental management system. Its Japanese partners, including Okamura, Koizumi, Itoki and Kurogane, have always highly praised SAVIMEX.
Additionally, SAVIMEX always gives its partners a commitment on the high quality and competitive price of its products. The company has promoted the development of its sales in the domestic market, building and expanding its distribution network with showrooms. The company’s target throughout 2010 is to double its 2005 sales, earning between US$45 million and 50 million, and to gain an increase of between 150 and 200 per cent of profits compared with 2005, which is estimated at between VND 30 billion and 40 billion. SAVIMEX will strive for sales of more than US$100 million in 2015. In 2005, SAVIMEX’s export turnover to the Japanese market was put at US$ 18 million, up by 20 per cent against 2004.
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