11:24:07 AM | 23/8/2011
Binh Thuan Forestry One-member Limited Company was founded in 1992 by merging several woodwork enterprises in Binh Thuan province. In its first years, the company mainly exploited natural wood and in 1997 it began to plant forests. The company changed into Binh Thuan Forestry One-member Limited Company in 2011. In 20 years of development the company has overcome difficulties, not only asserting its position in the market but also contributing to local social-economic development, especially forest plantation and protection.
Challenges and success
The company spent the two thirds of the past 20 years dealing with difficulties and challenges. Inefficient operation and long lasting loss, especially under government policies to close natural forests once brought the company to the verge of bankruptcy. However, with its determination and enthusiasm and the support of Binh Thuan provincial People’s Committee, the company stabilized in 2008 and made profit since 2009. This successful attempt has not only helped to retain national capital and ensured jobs for its staff, but also opened up development opportunities for the company.
At present, the company has five factories involved in forest planting, protection and wood processing; two stores trading wooden furniture and an agent system in the Central region and Ho Chi Minh City, with about 200 employees and cultivation area of over 10,000 hectares. In 10,000 hectares of land under the company’s management, there are about 8,000 hectares used for planting forest and industrial plants with 6,500 hectares of cross-bred acacia and sandalwood, about 1,500 hectares of rubber, in which some areas have been cropped.
The company has managed to create a reputable brand of wooden furniture. Its brand Invesbois and Binh Thuan Wooden Furniture have gained significant market share.
How has a company so recently on the verge of bankruptcy overcome difficulties to grow? According to the company’s General Director Nguyen Tien Dung, the success comes from the transition to planting forest business. It has totally changed the whole enterprise. At present, Binh Thuan Forestry Company is the first one in Binh Thuan to plant forest for business.
Concerning human resource development policies, General Director Nguyen Tien Dung said through many rises and falls, we are aware that human resource are the most valuable asset and determine the enterprise’s success; therefore, the company has adopted policies supporting its employees. The company offers regular health check-ups and training courses. It has built motivation for staff to work and devote themselves to the company’s development.
Continuing to expand markets and build strategic products
Forest development is the task, target and driving force for the company at present and for the time to come. However, the company is presently meeting many difficulties such as bad weather, low rainfall, and poor soil, which directly influences the quality of planted forest and business cycle. One of the company’s current duties is to protect land, increase land use efficiency, and improve planted forest quality.
This is the task of first priority since it is not only meaningful in improving the environment, but also plays an economic role in building a stable material zone to support manufacturing and diversifying products later. Especially, it is important for the development strategy since the company is planning to build a factory of artificial MDF plank, with inputs from 8,000 hectares of planted forest, to gain highest added value in forest planting and wooden furniture manufacturing activities. It is known that this project has been initiated but slowly implemented because of the economic recession’s impacts and high interest rates.
Concerning the company’s development orientation for coming time, Mr Nguyen Tien Dung said: besides forest plantation activity, the company will expand wooden furniture markets, build up strategic products as well as develop brand to serve domestic demand and aim at export market. The company’s current biggest target is to build artificial plank factory, of which products bring about highest added value, develop strongly and stably and more crucially contribute to local economic – social development.
To conduct the development strategy, in the coming time, the company is willing to cooperate with domestic and foreign investors to implement its investment and business projects based on a spirit of cooperation, added Mr Nguyen Tien Dung.