Vietnamese Businesses Conquer World Market

 

Truong Thanh Furniture Corporation has long been active on the world market, with a significant presence in the UK, France, Spain, Germany, Finland, Denmark, Greece, Australia, New Zealand, the US and Japan. Truong Thanh’s products have also been exported to new markets such as Brazil, Romania, Turkey and Saudi Arabia. Truong Thanh’s products are now present in many popular supermarkets and retail systems in the world such as Carrefour, Lapeyre in France, Home Retail Group (Argos & Homebase) in the UK, and famous distributors such as Alexander Rose in Britain, Hartman in Europe, Royal Teak in Denmark and Oxford in the US. The company sells products to other countries directly, with effective marketing strategies, rather than via foreign brokers.

 

Truong Thanh Furniture is different from other wooden furniture manufacturers as it sells utilities, not outsourced products. As a result, 84 per cent of Truong Thanh products sold worldwide are designed by its specialists. With 23 qualified designers, Truong Thanh has surveyed the consumer culture, consumption routines and favoured materials in targeted markets to provide the best utilities to consumers, diversify its products to suit the culture in each market while representing the company’s creativity. The company introduces more than 200 new designs each year, meeting 8 professional design criteria of the woodwork industry.

 

In the first five months this year, the corporation obtained export turnover of nearly US$19 million, ranking second in the country after Malaysia-invested Poh Huat Company, but the largest among Vietnamese-invested wood product exporters. Truong Thanh has long processed high-grade teak timber imported from Italy, France and Spain to meet the high-end market. The company has signed many export contracts, providing enough work until the middle of 2008. Especially, Truong Thanh inked a contract with a big US-based company introduced by Vinacapital, which may bring in high value orders to the company’s new plant in Tan Uyen District. The Tan Uyen plant is being built with a total investment capital of VND320 billion (US$20 million) for the first operating year, and is expected to be put into operation in October of 2007.

 

With average year on year growth over 50 per cent, Truong Thanh has attracted many strategic investors such as Aureos South East Asia Managers Ltd, Vina Capital, DWS - Deutsche Bank Group, Blackhorse Asset Management Pte. Ltd, IFAG, Institutionelle and Asset Management Consulting AG. This is the opportunity for Truong Thanh to enhance its image and prestige globally.

 

Apart from Truong Thanh Furniture Corporation, another successful exporter in Binh Duong province is Minh Long Company No 1. Mr Ly Ngoc Minh, a Binh Duong local who lives in a traditional porcelain and pottery village, casts porcelain and pottery products reflecting Vietnamese cultural characteristics and brings them to the world market. With creative painting styles, designs and advanced kilning technology, Minh Long produces unique products. The products of Minh Long I are now present in the EU and US markets. These products are also favoured in Japanese and Chinese markets, where china and pottery production have long been developed, and quality and value are very high. Minh Long I export turnover reached about US$8.7 million, 8 per cent of total porcelain and pottery export earnings in Binh Duong Province.

 

Vietnamese aquatic products are also favourites worldwide. In the first half of 2007, Vietnam expanded to export tra and basa catfish to six new markets, bringing the country’s aquatic exports to 76 countries and territories. The European Union was the largest consumer of Vietnamese tra and basa catfish at 83,600 tonnes valued US$236.23 million, 48.3 per cent in volume and 51.2 per cent in value of national tra and basa catfish export earnings. Russia was the second largest importer of Vietnamese tra and basa catfish as it imported 20,5200 tonnes valued US$41.36 million, or 11.86 per cent and 8.96 per cent of the Vietnam’s tra and basa export total, respectively. As of June 2007, ASEAN countries are reported to import 9.1 per cent of Vietnam’s exported tra and basa catfish and contribute 6.25 per cent to Vietnam’s earnings from this commodity. Ukraine received 4.9 per cent and 3.45 per cent of the country’s total tra and basa catfish export.

 

Strong growth in tra and basa export is attributed to the hygiene, food safety and quality management. An Giang Seafood Import-export Joint Stock Company, or Agifish, is one of five leading tra and basa catfish exporters of Vietnam. Agifish, with export turnover of US$25.735 million in six months, has attracted many customers from countries all over the world such as the US, the EU, Australia, Hong Kong, Singapore, Taiwan and Japan. Agifish has constantly improved its prestige and image to become a strong brand name on the world market. Apart from majors of tra and basa catfish, Agifish also processes other kinds of freshwater fish of the Mekong Delta and other high-value seafood products such as crayfish, anabas, flour-steeped fish and cuttlefish. Along with the successful results on the global market, Agifish also holds a significant domestic market share, primarily thanks to its diversified value-added products which match Vietnamese tastes. Agifish is selling more than 100 processed tra and basa products to distribution agents, restaurants, supermarkets and schools in 50 provinces and cities nationwide.

 

Active and creative management skills, bold attitudes and a well-trained labour force are decisive elements for the success of Vietnamese enterprises. Apart from capital and technology, human resources are a major advantage for Vietnamese companies in the global market rivalry. In the garment and textile sector, Vietnamese companies used to be known as outsourcers for foreign leading contractors, but many companies are now affirming their reputation on the world market such as Viet Tien, Viet Thang, Nha Be Garment, Garment 10 and Phuong Dong. After being transformed into a joint stock company, Phuong Dong Garment has made extensive investment in improving product quality and production capacity. The company has also paid great attention to strictly applying quality standards such as ISO 9001-2000, SA 8000, WRAP and ECO. Especially, Phuong Dong has invested in the designing phase to produce its own original fashion collections to take part in the international fashion world. Phuong Dong’s customers now include many famous fashion agencies in the world such as JC Penney, Nike, Eddie Bauer, Nautica, Columbia, AE, Resource and Perry Ellis of the US, Germany, France, Britain, Sweden and Czech Republic.
P.V