Hai Phong Electrical Mechanical JSC: Time-honoured Sustainable Development

HAPEMCO, formerly known as Hai Phong Electrical Gas Enterprise, was established in 1961 as the only unit in the coastal region to manufacture electric fans and electric motors. In 1984, when the supply was short, all products of the company were sold out. The reputation of its products absolutely won the trust of customers. This is the golden age of HAPEMCO. However, in the late 1980s when the country shifted market economy, the company’s products, from its almost monopolistic position, had to intensely compete with imported rivals with good design and quality. Being fully aware of new hardships, the firm had to self-improve in all aspects to overcome new challenges to survive and develop.

 

In 1998, the enterprise was renamed to Hai Phong Electrical Mechanical Company with more autonomy, stronger development momentums. Quality, style and design of its products were constantly being improved to compete with other rivals on the market, together with affordable prices and suitable tastes to Vietnamese consumers. In 2004, the company went public to have better conditions for renovation, integration and development. The value of industrial production increased an average of 15 percent annually, thus assuring income for the nearly 300 workers. In 2013, the Company made revenue of VND223 billion and net profit of VND16 billion and paid VND17 billion to the State Budget.

 

Mr Hoang Thanh Hai, President and CEO of the company, said: "Three principles that all HAPEMCO employees fully comprehend are high quality, reasonable price and truly professional service. Serving and satisfying the desires of customers is the top priority of the company." Defining human resources as the decisive factor to the success of every brand, HAPEMCO focuses on training its employees to ensure the progress of production and the quality of products.

 

Apart from traditional products, HAPEMCO is also known as a manufacturer of high-quality parts of electric fans. In 2003, seeing the market demand, the company expanded its production scope to this category. From importing all items to assemble fans, the company has supplied parts for other companies. Annually, it produces about 1 million fan cages and more than 100,000 sets of fan parts and supplies plastic parts to Japanese and South Korean partners. Revenue from this segment is estimated to account for 30-40 percent of the company’s total revenue.

 

The quality and reputation of Phong Lan fans brings new opportunities for HAPEMCO. After performing the market research and assessing HAPEMCO capabilities, in 2004, Mitsubishi Corporation of Japan named HAPEMCO an exclusive distributor of its products. Mitsubishi electric fans sold by HAPEMCO in Vietnam are in a great number, with a stable annual growth of over 10 percent. Not only being a trusted partner, Mitsubishi also supports HAPEMCO to enhance standardisation of production, marketing and customer care. The 10-year cooperation has helped HAPEMCO acquire valuable experience, innovation and product quality improvement.

 

In the past 50 years, HAPEMCO is the fruit of endless efforts and pride of generations of the staff. Phong Lan electric fans are always the pride of the company and Hai Phong City as a whole.