Chinfon Cement Corporation: Asserting A Brand Name Position

Chinfon Cement Corporation is a joint venture company licensed by the Ministry of Planning and Investment on December 24, 1992 with initial legal capital of US$90 million. The company invested a total of US$450 million to build two cement production lines in Trang Kenh Village, Thuy Nguyen District, Hai Phong City. After more than 10 years of construction and development, Chinfon Cement Corporation has become a leading brand name in the Vietnamese cement market and an exemplary producer of premium cement products.

Chinfon has already a famous cement trademark in Vietnam. The first production line has a designed production capacity of 4,000 tonnes but has been scaled up to 4,900 tonnes per day, 23 per cent greater than designed capacity. With experience with the first production line, the corporation continued with the investment for the second line with latest equipment and technologies from developed nations like the US, Japan and European nations.

At present, the corporation has a strong staff of 850 employees, of which 264 are university graduates or above, 279 graduates from technical vocational training schools and the rest are high school graduations. By the end of 2007, the average monthly salary is VND4.3 million per head.

With its modern and synchronous equipment and technology together with capable and high-quality workforce, Chinfon has manufactured premium products to meet the demand requirements from customers. Especially, the company is very proactive in renovating technology and equipment to scale up the production capacity. As a result, cement production output increased from 1.4 million tonnes in 1998 to 2.7 million tonnes in 2007. Expectedly, the production output will reach 2.8 million tonnes. When the second production line starts operations, the annual output of Chinfon Cement Corporation will therefore multiple. In 2009, the cement producer forecasts to turn out 3.5 million tonnes in 2009, becoming the largest cement factory in Vietnam to date.

Since 1997 when the first production line started operations, the company has been one of the largest taxpayers to the city’s State Budget. In 2003, it paid VND94.5 billion to the State coffers but the figure was VND158.4 billion in 2006. Last but not least, Chinfon Cement Corporation shared the profit of US$72 million to its shareholders, becoming one of the cement produces with highest dividend payout ratio in Vietnam.

Accrediting the achievement in more than 10 years, the State President of Vietnam has granted the third-class labour order to the company and the Central Government conferred many noble awards and certificates of merits. Chinfon Cement Corporation is also the largest Vietnamese company to win the Asia - Pacific Quality Award.