Vinh Tuong Industry Joint Stock Company, with 15 years of experience, has occupied up to 70 per cent of market shares in the local construction and building materials market of the building. It is a really remarkable achievement in the local market, however, Vinh Tuong is moving forward to establish a factory in Cambodia. On the occasion of 32 year anniversary of the South Liberation, Vietnam Business Forum reporter Thu Tran has a talk with Mr. Tran Duc Huy, Vice Director General of Vinh Tuong Industry Joint Stock Co., about some business and production activities of the company as well as its strategies in the coming time.
In recent time, the company has carried out the projects that have been a lot of impressions. Can you inform us about some characters in the process of construction and development of the esteemed company?
From the beginning, in 1997, Vinh Tuong Industry Joint Stock Co. was the first private establishment specialized to producing ceiling frame and plaster wall that be established. Since January 2006, it was transferred to Vinh Tuong Industry Joint-stock Company with more than 400 staff. At present, we have been one of the leading enterprises in Vietnam in the field with more than 300 agents domestically and in foreign countries. We recently inaugurated the 5.3-ha modern factory group located in the Hiep Phuoc Industrial Zone with total capital is of USUS$14 million and a 1,000-tonnage wharf. In the future, the wharf’s capacity will be increased to 10,000 tons. We now account for 70 per cent of domestic market shares with the annual turnover of VND300 billion and record an annual grow rate of 40 per cent. Besides, Vinh Tuong products have exported to many countries such as Singapore, Taiwan, Malaysia… and in the future to USA. This year, we intend to set up a joint venture and a factory in Cambodia in order to enter international markets.
Will your factories in foreign countries such as Cambodia gain successes when facing with legal and language barriers?
When Vietnam becomes a WTO member, this is an opportunity to the Vietnamese enterprises who arrived to the new playing-field, especially for the field of building materials. We want to enter a larger playing-field. Why we have chosen Cambodia yet? We have carried out to study the market in the long term, Cambodia has been a market with high economy grow and its construction field will have leaps and bounds in the next years. Our advantage at present is that Vinh Tuong’s products have occupied about 40 per cent of market share in Cambodia through the distributors who are also the company’s shareholders. In addition, with high freight costs from Vietnam to Cambodia, the factory in Cambodia and the on-site production will be the large advantage in the costs. However, we are worry about the differences of language, legal corridor, etc…. but right now, our manufacturers in Cambodia have became the company’s shareholders and I believe that Vinh Tuong will integrate and success in the first time in the foreign country.
Recently, some enterprises in your field have successfully participated into the capital market. What do you think about the Vietnamese capital market? Is it necessary for Vinh Tuong to participate into the market for the development?
For me, the stock market is at present the richest term of the capital resource market, the breakthrough development in the end of 2006. It brings an interest of both domestic and foreign investors but it remains a big risk.
Being listed in the stock market is an indispensable matter of a developed enterprise because of the enterprise’s transparency and good chances to sharpen its image to the public.
To attract more investment and enlarge the company’s capacity, we are examining many proposals to cooperate with world large-scale groups in the plaster field, and preparing to issue IPO stocks in June 2007. We plan to officially be on bourse in 2008.
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