Hanoi Tile Co.: Focusing on Modern Technology for Business Expansion

Hanoi Tile Co.: Focusing on Modern Technology for Business Expansion

Hanoi Tile Co. is one of the biggest subsidiaries of the Vietnam Glass & Construction Ceramics Corp. (Viglacera). Established in 1998, the company invested to purchase modern integrated technology from Italy for expanding its production of ceramic tiles. It now has two factories in Hanoi and Hai Duong with a current total capacity of producing 6.5 million square metres of tiles in comparison to one million square metres previously.

In accordance with the strong development of the domestic construction industry recently, demand for tiles has risen sharply. Talking the opportunity, the company raised manufacturing and reached an annual revenue growth of 15-20 per cent. The company’s revenue rose to VND310 billion (US$19.7 million) in 2003 from VND60 billion (US$3.8 million) in 1998. This year’s output and consumed volume are expected to reach on-year increases of 117.4 per cent and 116 per cent, respectively. Average monthly earnings of the company’s 850 cadres and workers will be VND1.7 million (US$108) per person this year.

With a wide distribution network and variety of models and styles, the Viglacera-Hanoi trademark has won the trust of customers including large firms such as Vietnam Construction Material Import-Export Corp. and Hanoi Urban Development Corp.

However, the company is now facing difficulties including unpredictable market fluctuations in construction materials, oversupply, which causes fierce competition among enterprises operating in the same field, the appearance of alternatives such as wood tiles for floors, and higher input costs of petroleum and electricity. Meanwhile, product prices have decreased by around 30 per cent since initial establishment, cutting into the company’s profits.

To solve these issues and prepare for further integration into the world’s economy, Hanoi Tile Co. is boosting export of their products. It reached $1.5 million worth of exports in the 2001-2003 period, accounting for 5 per cent of the company’s total revenues. The firm is also developing the Viglacera-Hanoi trademark to make it the strongest tile trademark in Vietnam. It will focus on the quality and variety of its products to compete with rivals on the domestic and foreign markets. The company will also continue to maintain a healthy financial situation so it can continue to make loans from banks for business expansion and to meet requirements of big contracts.

With this development strategy, Viglacera-Hanoi is a typical enterprise of the Vietnam Glass & Construction Ceramics Corp. It has helped launch Vietnam’s tile products onto the world market.