Adopting a modern quality management tool and a business model and management system in accordance with international practice is considered a "magic wand" which helps Nam Phat improve its product and service quality, increase its competitiveness in the market, and confirm the brand in the fields of iron and steel industry and marine transportation. Vietnam Business Forum interviewed Mr Nguyen Luong Ngoc, Director of Nam Phat Steel Trading Company Limited. Tran Trang reports.
Looking back at 2014, what is the highlighted success of Nam Phat?
After 9 years, a challenging development period with many ups and downs, from a small company with little capital, Nam Phat has developed into a company with a factory and workshop system covering various fields including producing construction and industrial steel, building and repairing marine transportation means.
Currently, Nam Phat is applying the ISO 9001 system integrated with ISO 3834, building 5S management standards, adopting a management and business model focusing in the main office and branches in Ngoc Hoi, Hung Yen, Quang Ninh and Ho Chi Minh City which applies a sector-oriented management of steel, shipbuilding and shipping business, logistics, and road transport. Thanks to the centralised management model, the direction and acknowledgement of business, production, and cost control of the branches is updated daily through the reporting system of each department and each division, which helps the company office regulate the overall operation flexibly and solve the problems of the customers and of business in a timely manner, ensuring the progress of the projects. At the same time, the company's leaders timely grasp the situation and make the right decisions to minimize risks and have proper business strategies.
In 2014, Nam Phat made strategic investment in manufacturing techniques, machinery and equipment to improve productivity and product quality, to cut costs and reduce prices for customers in the difficult times of market. Therefore, the market share of the company was greatly expanded in 2014.
Specifically, Nam Phat has been developing maritime transport in the direction of modernization, improving quality, affordable and safe transport services, and minimizing pollution of the marine environment. To survive and achieve the best business results, we will continue to cut input costs in order to reduce transport costs and increase competitiveness of Nam Phat ships in not only domestic market, but also international markets.
The combination of full-package transport services from warehouse to warehouse will continue to be maintained. In 2014, the total volume of domestic and international customers we carried was about 220,000 tonnes, in which the majority being iron and steel products and equipment. In 2015, we strive to increase the volume about 1.5 times, to 350,000 tonnes.
To continue to make Nam Phat a trusted brand in the heart of customers and international partners, which significant strategies has Nam Phat been implementing to further strengthen relations with partners?
Nam Phat has been implementing significant strategies to strengthen relations with partners. We are continuing to invest in more modern machinery and equipment from Japan and Taiwan to enhance competitiveness, at the same time building quality standards in accordance with international business practices. We are also raising the skill level of staff and technicians to reach sustainable development; taking care of living conditions for workers to bring Nam Phat steel brand to the golden hands of the skilled mechanics of Vietnam. Besides, we are expanding new stainless steel items such as steel pipe and cold rolled steel to enhance production capacity towards consumer products. In addition, we are now focusing on production projects serving bridges, transportation, oil and gas, and hydro-thermal power.
Nam Phat is gradually building a solid foundation to be able to participate in joint ventures associating with foreign partners such as Japan and Korea. Currently, Nam Phat is also the biggest supplier of Japanese and Korean steel in the North. With large amount of imported goods, Nam Phat also produces and processes steel products to companies in Japan, Korea, Taiwan which have plants or having projects in Vietnam.
In terms of shipbuilding industry, we will be more active in the development of the tourism shipbuilding industry, including overnight and hourly cruise ships, fishing boats and small barges. Also, the repair of river boats, fishing boats, barges and small ships under 2000DWT will be more of a focus this year.
Generally, the cycle of "building, repairing, exploiting marine shipping" will be a series of activities of Nam Phat in the maritime sector throughout 2015.
With the new year at the doorstep, what is your assessment about the opportunities of Vietnam's economic development, specifically in the areas where Nam Phat operates?
2015 is the final year of the 2011-2015 five-year plan, also the year opening up a series of important international events related to the integration of Vietnam. The development direction of the Party and the government under integration policy is the right step which creates good playing field for enterprises to seek cooperation and development opportunities. Nam Phat is engaged in industry iron and steel and shipping. It can be seen that the economy is still experiencing a difficult period. Therefore, in the 2015 - 2017 period, enterprises in the industry will have to find their own development directions to integrate with global trends. After overcoming difficulties will come recovering and development. This is an inevitable trend.
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