Tien Phong Plastic Hallmarks

Originating from a small manufacturer for children, in 1989 - 1990, the company shifted from producing plastic slippers and housewares to plastic pipes, marking the new development of Tien Phong Plastic. After going public in 2005, Tien Phong Plastic emerged to be the biggest pipe producer in the country. In 2006, Tien Phong Plastic officially floated its shares on the stock market. So far, Tien Phong Plastic products have occupied over 70 percent of the northern market share and 30 percent of the country’s market share.

 

In 2009, the company expanded its branches in the Southern region. The firm invested VND100 billion to build a new plant in Dong An 2 Industrial Park, Binh Duong province. Once completed, this facility will turn out PVC, HDPE and PP-R pipes for southern and central southern regions. This is the biggest plastic market in the country.

 

To better serve customers’ demands and expand production scale, Tien Phong Plastic established Central Tien Phong Plastic Co., Ltd to build a production plant in Nam Cam Industrial Park, Nghe An province. Costing VND120 billion, the 4.5-ha facility is designed to churn out 20,000 tonnes of products a year. This project not only brings value economic value to the company but also gives a boost to industrial development in this barren land.

 

Not only being a strong brand in the country, Tien Phong Plastic is also trusted by foreign partners. To scale up production and expand global presence, the company has so far conducted registered its brand name in some countries such as China, Laos, Thailand, Cambodia and Myanmar. The company’s exports are expected to balloon in the coming year.

 

Tien Phong also marked its global presence and full maturity by setting up Tien Phong - SMP Joint Venture in Laos, a US$2.5 million joint venture where Tien Phong Plastic holds 51 percent of stake. The company estimates its export revenue with Laos will reach US$1.2-1.8 million a year.

 

Joining forces with Hai Phong City to catch the new wave of Japanese investments, Tien Phong Plastic has sought out a reliable partner, Sekisui Chemical Group. This economic cooperation has opened up new opportunities for Tien Phong Plastics to expand joint investment and market development in the future. With 62 years’ experience in plastic production, Sekisui Chemical Corporation will transfer moulds, equipment and technology to Tien Phong Plastic to make aforesaid products. The Japanese partner will also provide all aspects relating to patents, trademarks and technologies, brands and product information.

 

Tien Phong Plastic will make and sell Sekisui Chemical products and use Sekisui Chemical trademarks for these products. Remarking on this potential partnership, Tran Ba ​​Phuc, President of Tien Phong Plastic, said, "This partnership will open up opportunities and prospects for both sides. We believe that we will acquire advanced production technology and business governance experience, especially experience in manufacturing and distributing products for basic construction works in Vietnam.” Tien Phong Plastic and Sekisui Chemical will create a common standard for Asian plastic industry.

 

With continuous investment for technological innovation and quality improvement, the company’s uPVC, HDPE and PPR pipes used in construction, industry, agriculture and household fields have quickly dominated the domestic market. Many product lines hold uniquely, overwhelmingly competitive advantages against other rivals like uPVC pipes with 22 sizes plus hundreds of fittings for various consumer demands.

 

However, Tien Phong Plastic has also witnessed new challenges. How to improve competitiveness in the context of extensive integration, ensure product quality and uphold the Tien Phong brand name is a heavy task for the company’s leadership. Product quality is the key to the existence and development of Tien Phong Plastic brand name and the product quality is decided by personnel, machinery and technology. Therefore, in addition to recruiting and training high-quality personnel, the company regularly invests to buy new machinery and technologies. Currently, Tien Phong has European-standard in machinery and equipment.

 

With its constant efforts, Tien Phong Plastic manages to maintain its annual growth of 15 - 25 percent. In 2013, its sales valued VND2,524 billion and the net profit was VND376 billion. With nearly 1,200 employees, the company issued a collective bargaining agreement with an average monthly salary of VND6.5 million per employee. However, the real pay is usually higher than the amount fixed in this agreement. The company expects to see a 5-percent growth in 2014.

 

With six deferred sales centres and nearly 300 sales agents, Tien Phong Plastic has reached every corner in the country and has broadened its international presence. During its 50 years of construction and development, Tien Phong Plastic is always the leading light of the Vietnamese plastic industry.