Son Hai Phong JSC towards a World-Class Science Technology Center

10:28:37 AM | 10/12/2019

With dedication and effort for success and nearly 60 years of experience, Haiphong Paint Joint Stock Company has been building the “Haiphong Paint” brand featuring the “whale” image linked to ongoing innovation and development of a dynamic and creative port city of Hai Phong. Vietnam Business Forum Magazine has an interview with Mr. Nguyen Van Dung, Vice President of VLC Group, General Director of Haiphong Paint Joint Stock Company. Ha Thanh reports.

Haiphong Paint Joint Stock Company is reportedly making many innovations in management and has achieved great breakthroughs in production, scientific research and product value generation. Could you please tell some about some of these outstanding achievements?

It is already nearly 60 years since the Haiphong Paint trademark with the image of “whale” became a popular symbol of quality in the hearts of customers far and wide. Not only creating a quality product line that meets customer needs, the company also builds a distinct corporate culture in which employees can work in a healthy, motivated environment to work to their best. The company is not only an economic entity that pays tax to the State Budget, but also a very active donor for social charity. It is willing to share with the community and help disadvantaged and vulnerable people in society.

To achieve this result, the company is always consistent in the chosen path. Specifically, it takes the market and customers as the center of business to formulate its product development strategy; constantly innovates, upgrades and develops high-quality, environmentally friendly products towards international conventions; ensures a good life for employees, builds a healthy work environment, cultural and sporting activities; and strengthens employer-employee relationships. Besides, the firm proactively does social charity, maintains support for Vietnamese heroic mothers, and engages employees to support humanitarian charity funds. It always strives to satisfy customer needs with the best quality of technical services, warranty services, and after-sales maintenance services catered by certified engineers who got international certifications like NACE and PROSIO.

General Director Nguyen Van Dung introduces the company’s scientific research to the Department of Industry and Trade

So, what is the core value for the company to achieve outstanding success in the past, especially from 2015 to date?

In my opinion, our current achievements come from good policies of the central government and the support of local government; the judicious leadership of the Board of Directors of VLC Group and the solidarity, dynamism and creativity of all the staff of Haiphong Paint Joint Stock Company. In particular, the company has strengthened cooperation, acquired cutting-edge technologies from Japan, Malaysia, Singapore, Italy, England, the United States, Germany and other nations. The signing of cooperation agreement with Japanese Chugoku Group in 1996 was an important milestone for the company to make disruptive progress in ship painting technology. On the other hand, Haiphong Paint Joint Stock Company has paid special attention to launching creative work movements. It has also adopted appropriate mechanisms and policies to stimulate skilled technicians and workers to work their best.

The company’s researchers are provided with sufficient resources and granted monthly allowances equal to 30-70% of their salary. When new products are launched onto the market, technicians will be rewarded by the General Director, based on sales performance.

Besides, the company applied the ISO:9000 quality management system in 1998, the ISO:14000 environmental management system in 2008 and upgraded to ISO 9001:2015 and ISO 14001:2015 standards. Especially, the company’s laboratories meet ISO/IEC 17025:2015 standards. Currently, the company has maintained and applied these management systems to deliver high performance.

Technology is a must-be-told strength of Haiphong Paint Joint Stock Company, enabling it to create product lines with highly competitive advantages. Could you give more specific information about this plus?

In recent years, the company has spent a lot of money on new know-how and advanced equipment in the world for its paint production workshops and testing centers such as short oil plastic technology, new-generation paint crushers, laboratory equipment, automatic paint lines, grinders, ultrafine paint stirrers, Alkyd plastic cookers, solvent filters, tank washers, pulverizers, glass-sized analyzers, and Q-Sun cabinets to test light durability. Intensive investment helped the production division and product quality testing and control center to minimize production errors.

In addition, the company has actively researched and applied advanced technology to bring environmentally friendly paint products to 80% of the output. The company invested a handsome sum of money to build a modern research and development center. It also added new equipment for testing new products, checking product quality and controlling process. Moreover, Haiphong Paint Joint Stock Company set up new product research groups, including solvent paint group, antifouling paint group, high solid paint group, floor paint group, and fireproof paint group. In particular, the company's leadership focused on investment resources for research teams to come up with new products to meet market requirements while ensuring to offset declining revenue as a result of the slump of the shipbuilding industry.

One remarkable new product is Alkyd resin (replaced imported paint materials, supplied to other local paint companies and exported to foreign markets such as Laos, Cambodia and Myanmar) and fireproof paint certified by the Fire Department, the Ministry of Public Security. This fireproof paint is currently being used by contractors for constructions and projects such as Nhon - Hanoi Train Station and Cat Linh - Ha Dong elevated railway projects or major projects in Vietnam like train stations, air terminals, commercial centers and apartment buildings in provinces and cities across the country.

The company studied and changed technology of some new products which are highly competitive in the country and exported to other markets, like anti-rust paint, non-tin, non-chrome antifouling paint, water solvent paint, and factory floor paint. Newly launched products meet market needs and comply with the IMO International Convention on Marine Environment Protection. Therefore, Haiphong Paint Joint Stock Company is one of the first companies in Hai Phong City to be recognized as a science and technology business (recognized for four years to date).

Know-how investment, equipment and new product research increased labor productivity and product quality, created new products, reduced costs, and enhanced competitiveness, and uplifted its position in the domestic and international market. Haiphong Paint Joint Stock Company is striving to become a “center of scientific and technical research for paint technology in Vietnam, the region and the world”.

“According to VLC Group’s development strategy to 2025, we will have about 18-20 factories. Currently, we have nine factories in Hai Phong but if the city has a better mechanism, we will continue to invest more here. Moreover, our partners abroad will work with us to invest together. Therefore, city leaders should have better support for local small and medium enterprises. At the same time, the municipal government should continue to attract potential foreign partners and contact with local industry leaders to create the “oil spill” effect into production and business chains and business development to sustain local economic development.”

Was “increasing the market share, confirming the No. 1 position in Vietnam and bringing Haiphong Paint to the world” the desire of the Board of Directors, as well as your expectation, when you became General Director in 2015 or not?

As I mentioned above, this is the very roadmap that VLC Group and Haiphong Paint figured out and gradually realized. First and foremost, this is proved by persuasive figures. For example, the growth rate in the phase from 2015 to 2018 versus the 2011 - 2014 period showed that output expanded by 174%; sales by 152%, revenue by 130%, profit by 185%, and average income by 174%.

In the first nine months of 2019, its total revenue jumped by 44%, product output by 47%, profit by 74% and average income increased by 6.6%. The company expects to beat revenue target by 20%, output by 30%, profit by 33% and payroll by 10%. The current average income of its employees is 3.6 times higher than the base wage set for Region 1 provided by the Government. Haiphong Paint Joint Stock Company continues to be among Top 500 most profitable private enterprises in Vietnam.

Last but not least, Haiphong Paint Joint Stock Company always pays attention to charitable and social work and takes care of Vietnamese heroic mothers, lonely old people and orphans. It joins all social development programs launched by local and central authorities. It also engages its employees to support charitable activities and social welfare funds such as the “Day for the Poor”, “Flood and Storm Prevention”, “Gratitude to Deserved People” and “For Beloved Truong Sa”. It also joins hands with others to build charitable houses, remove temporary houses, construct rural areas and other social activities with a total budget of roughly VND1 billion a year.

Thank you very much!

Haiphong Paint Joint Stock Company plays a “core” role in VLC Group and is one of the “leading birds” of the Hai Phong industry.