Nam Dinh Silk Weaving JSC Ready for TPP

3:30:48 PM | 30/12/2014

The adoption of the Trans Pacific Strategic Economic Partnership Agreement (TPP) will open up great opportunities for businesses in Vietnam. Products exported to TPP member countries will be tax free instead of the current 7-15 per cent rate. The much or little this benefit will help companies depends on their capability to utilise opportunities. How have Vietnamese companies prepared to increase exports to major trading partners? To seek the answer to this question, we paid a visit to Nam Dinh province, the hub of Vietnamese garment and textile industry.
We met Mr Dao Van Phuong, CEO of Nam Dinh Silk Weaving Joint Stock Company at the end of 2014. He happily said the company hopes the TPP is signed soon. The company’s management sees that this provides a great opportunity for business development, but also poses challenges because of fair global competition. To be successful, companies must enhance their international competitiveness. Therefore, the company chose to establish a tripartite joint venture of Japan, Vietnam and China to strengthen its market position. Without doubt, the success of the joint venture is the best combination of available resources of the company with technological, governance and marketing strengths of the partners. Its woollen clothing has been successfully exported to Japan, a very demanding market. The company is very confident in conquering other markets. And, if the TPP Agreement is signed, new customers in TPP member countries will be certainly convinced by the company’s silk quality and competitive prices.
Nam Dinh Silk Weaving Joint Stock Company is a member of the Vietnam National Textile and Garment Group (Vinatex). Grown from the cradle of the Vietnamese textile industry in Nam Dinh province, the company has developed in scale, quality and vitality. The company’s products have gone beyond the national boundary to reach the world market and stand firmly in demanding markets. That success is because of the creativity, resolution and enterprising spirit of successive generations of the company.
After going public, the company has made an impressive transformation. The revenue increased over 3.5 times (from VND100 billion to VND350 billion) and average monthly pay climbed 4 times (from VND1 million in 2007 to VND5 million in 2013). Tax paid to the State Budget jumped from VND3-4 billion a year before the equitisation to VND20 billion in 2013. The company was conferred the Certificate of Appreciation by the Ministry of Finance for outstanding tax payment and the Emulation Flag by the Ministry of Public Security for security and order in 2013. The above results are attributed to the support of the Nam Dinh government, Vinatex and the Ministry of Industry and Trade, and especially the innovative thinking, creativity, solidarity and democracy of the company.