3:08:59 PM | 19/4/2007
The state-owned Dong Nai Garment Joint Stock Company went public in August 2001. After five years, the company built an additional five enterprises with nine factories, doubling its size from 2001, and increased worker salaries by 64 per cent. Production output jumped from 2.263 million products to 4.144 million, and revenues from VND99 billion to VND266 billion. Export earnings doubled and profits were up 3.3 times. The average dividend was 13.2 per cent a year, some years up to 19.8 per cent.
In general, after going public, the company has showed solid overall development. From being a true outsourcing unit, the company now directly trades 70 per cent of its output, raising revenue and production value. Initially, only one unit exported 70-80 per cent of its products to Japan, sometimes 100 per cent. Nowadays, 40-45 per cent of its products are exported to Japan, 35-30 per cent to the US and 15-20 per cent to Europe. From only one unit producing jackets, overcoats and labour safety uniforms, the company has expanded to chemise, trousers, women’s vests and fashion products. In 2006, the company inaugurated a trouser and chemise production workshop in Dinh Quan with 1,200 employees.
After having more autonomy in business, the company takes more initiative in production and investment, increasing capital accumulation for reinvestment to raise production capacity. Therefore, Dong Nai Garment is able to upgrade to modern, specialised production lines, increasing productivity. However, the domestic market is still disregarded.
In the fashion industry, size, season and style are very important. Thus, its staff must be very smart to deal with high-value orders. Annually, Dong Nai Garment sends staff to study at other companies, Vinatex Group, schools or institutes, organises skill competitions for staff, and funds senior and skilled staff to take professional, foreign language and technical training courses. To date, the company’s experts can design their own products and expand the domestic market.
In addition to stable markets like Japan, the EU and Canada, Dong Nai Garment will increase its involvement in Russia and Africa.
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