Da Nang Rubber Company: Pioneer in Tyres

Da Nang Rubber Company: Pioneer in Tyres

VIP Forum interviewed Director Dinh Ngoc Dau

Will you please tell us about Da Nang Rubber Company

Da Nang Rubber Company made the right decision to produce tyres to substitute imports. The company continued its growth rate of over 20 per cent in 2004. With stable production and higher quality, the new production line has increasingly met the domestic and export demand. The trademark DRC (Da Nang Rubber Company) has become well-known in domestic and foreign markets. The turnover rose from VND378 billion in 2001 to VND750 billion in 2004. And the year-on-year increase in profit has enabled the company to expand production and continue growth in the past few years.

How did you make intensive investment in production ?

In three years (2000-2003), the company has invested VND396 billion (VND24 billion in the workplace and VND371 billion in equipment) and become the leading company in Vietnam producing tyres for trucks. With preferential credit from the State, the company has increased production capacity and quality, improving the design and quality of specialised tyres in substitution of imported items. The company has also completed the new quality management system ISO 9001:2000 by Quacert Vietnam and DNV (Norway). JIS standard (Japan) has also been applied in the production process. The company has tried to increase exports to Malaysia, Laos, Cambodia and Italy,  but in the initial stages,export value is still low (US$2 million in 2005).

And what are your future plans?

We will increase production capacity from 500,000 to 1,000,000 sets of tyres a year and start a modern production line in Lien Chieu IZ. With modern technology we can diversify products, expand our domestic and foreign markets and develop with a growth rate of 10-15 per cent a year. Our advantage is modern technology and equipment. The company will increase investment in 2006-2010 and market highly competitive new Radial technology products.

• Quoc Tuan - Hong Hanh