Overcoming numerous challenges and competitive pressure in the market, Fico Tay Ninh Cement Joint Stock Company (Fico-YTL Cement) has today risen to become an outstanding business entity of Tay Ninh province as it has a lot of important contributions to socioeconomic development, and actively sided with the province’s development orientation. To learn more about the tough journey to success of this leading cement brand, we have an exclusive interview with Mr. Nguyen Cong Bao, Managing Director of Fico-YTL Cement. Cong Luan reports.
Could you please briefly introduce the achievements and development milestones of Fico-YTL Cement, especially after YTL Group of Malaysia became a strategic shareholder of the company?
Through 17 years of development, Fico-YTL Cement has grown to become one of the Top 3 cement brands in the southern market with a total of three factories in operation, including Tay Ninh Cement Plant (1.4 million tons of clinker and 1 million tons of cement a year), Hiep Phuoc Cement Grinding Station (900,000 tons of cement) and Binh Duong Cement Grinding Station (300,000 tons of cement). At the end of March, Fico-YTL also received an investment license to invest in the second production line in Tay Ninh Cement Plant from the Tay Ninh Provincial People’s Committee. This move will create a strong motivation for Fico-YTL to consolidate and increase its market share.
Since its inception, Fico-YTL Cement has not only created a driving force for accelerated economic restructuring, but also ensured social security in the province. The company has provided full-time jobs for about 600 employees and thousands of indirect workers who are engaged in related service industries. At the same time, it has enabled the economic development structure of Tay Ninh province towards the rising share of industry and other related services in the economy and helped raise the budget revenue of the province. Currently, Fico-YTL is one of the largest taxpayers in Tay Ninh province. The company has proudly been in the Top 500 largest enterprises in Vietnam since 2011 and one of the most successful examples of the Government's equitization policy.
December 2018 marked an important milestone when YTL Group of Malaysia officially became a strategic shareholder of the company. YTL Group operates across the construction value chain: an investor, a constructor and a producer of building materials. Thus, Fico-YTL inherits its deep understanding of customer needs. In addition, YTL Group highly appreciated and trusted local capable, enthusiastic and honest personnel. This is a huge difference from other foreign-invested cement companies in Vietnam which often hire only foreign managers.
In the future, Fico-YTL will focus on long-term development. We also aim to double the capacity of Tay Ninh Cement Plant in 2023-2024 by investing in the second production line and building new grinding stations in Ben Tre and other locations.
What do you think about the current cement market? The presence of many cement producers will bring practical benefits to consumers, but also a very fierce competition environment. In order to survive and thrive in such a competitive environment, what strategic directions does Fico-YTL set out?
Needless to say, Vietnam is one of fiercely competitive cement markets when prices are low relative to the world, a result of the supply-demand gap and the market fragmentation. In that context, in order to compete effectively, Fico-YTL has concentrated on tightly controlling costs, diversifying products, and building brands and effective distribution channels.
In April 2021, Fico-YTL Cement completed a portfolio of specialized products for building houses and large projects. Notably, Supreme Power Cement - the strongest cement for the foundation, guarantees the housing endurance because the foundation is an important part of a house. We also launched Supreme Shield Cement - a salt-resistant alum-resistant cement suitable for building houses in areas near rivers and flooded areas.
Being aware that eco-friendly products are also an important factor to please customers, Fico-YTL Cement has made appropriate technology investments to make its products qualified for Green Label Certification. Currently, three products of Fico-YTL Cement are certified with Singapore Green Building Council (SGBC) and we will proceed to get this certification for the rest of the products.
Not only being an effective enterprise, Fico-YTL also makes very important contributions to sustainable development of Tay Ninh province. In the future, how will this goal be maintained and developed by the company?
In the future, Fico-YTL will strive for sustainable development, environmentally friendly and energy-efficient production. We launch waste co-processing for environmental protection. An internally used solar power station project will be debuted in 2022.
Fico-YTL's top priorities in the coming years are still focusing on human development, building brand reputation and optimizing business performance. Besides, we pay much attention to meaningful community activities called Building the Foundation for the Future. Building the Foundation for the Future not only helps build important foundations for socioeconomic development but also educates younger generations to improve the community life. This creates a solid foundation for the prosperity of localities where Fico-YTL Cement operates. The Company was estimated to spend VND80 billion on social security in Tay Ninh province since 2009: Supporting water supply for people in Tan Hoa commune - Tan Chau district and supporting fresh water supply of about 300 cubic meters a day for Saigon Bridge 2 border residential area; working with local authorities to install nearly 6km of street lights to ensure traffic safety and security order for residents of Cay Cay hamlet, Tan Chau district; funding more than VND500 million for constructing a playground for children. Last but not least, Fico-YTL Cement sponsored cement bags for construction and restoration of many schools in Tay Ninh province, building bridges and rural roads in many areas.
Source: Vietnam Business Forum