2021 was a volatile but impressive year for Vietnam's textile and garment industry. TNG Investment and Trading Joint Stock Company, with its flexible business strategy and reform determination, has overcome the COVID-19 pandemic and affirmed its position in Thai Nguyen province in particular and Vietnam’s textile and garment industry as a whole.
Steadily overcoming hardships
TNG Investment and Trading Joint Stock Company (TNG) was formerly Bac Thai Garment Factory, established in 1979. After more than 40 years of development, the company has become one of the top garment exporters. Currently, with 16 branches and over 16,000 employees, TNG is now a processing partner for many fashion brands in the world such as Uniqlo, Nike, Adidas, Mango, Zara, Columbia, GAP, Levi's, Calvin Klein and Fila.
In 2021, the textile and garment industry was one of the manufacturing industries most heavily affected by the COVID-19 pandemic. Many domestic companies faced enormous difficulties because of this. However, TNG managed to overcome challenges with its flexible application of production and business solutions.
Right at the beginning of the pandemic outbreak, TNG built scenarios for operations and closely updated pandemic developments. Typically with a large workforce, the firm made detailed plans for each group of employees, promoting their sense of initiative and responsibility in their work. In addition, it paid special attention to ensure their income, health and spirit, thus assuring their employees and enhancing their work performance.
Besides, the TNG leadership made timely decisions to adapt its business operations to pandemic development. Accordingly, TNG pioneered manufacturing standard antibacterial masks and medical protective gear for the domestic market and for export to many countries around the world.
As a result, TNG's factories always stably worked at their maximum capacity. In 2021, its total consolidated revenue reached VND5,445 billion, up 22% year on year and 13% higher than the full-year target.
To date, TNG has completed assigning work to its factories and branches in 2022, aiming to achieve total revenue of VND7,443 billion (including VND6,421 billion from the garment and textile segment and VND1,022 billion from real estate) and profit before tax of VND498 billion. TNG aimed to increase its revenue and profit to VND11,926 billion and VND1,173 billion, respectively by 2025.
To pursue sustainable development goals, TNG is always committed to green and environmentally friendly development. Its investment projects are increasingly innovative toward the Sustainable Development Goals (SDGs) of the United Nations (UN) and Vietnam. All factories are equipped with modern information technology to save energy and ensure employee health.
Moreover, to consistently become a leading garment exporter in Vietnam and bring the Vietnamese textile and garment brand to the world market, TNG gradually increased the percentage of domestic sales of TNG-branded fashion products.
Not only successful in manufacturing, TNG also affirms its position in construction, urbanization and industrial infrastructure. In 2019, the firm officially launched the TNG Village, a commercial apartment project. In 2020, it invested in building 70-ha Son Cam Industrial Complex and a resettlement and commercial housing project in Son Cam commune, Thai Nguyen City. Son Cam Industrial Complex aims to develop supporting industries for the garment industry in the country with a strong ecosystem to create development for the entire industry.
Speeding up digital transformation, sustainable development
Recently, Thai Nguyen is one of the localities to drastically adopt digital transformation. The province aims to be a Top 15 province in digital transformation by 2025 and a Top 10 province to this effect by 2030. To accomplish this goal, Thai Nguyen issued Resolution 01-NQ/TU on Thai Nguyen digital transformation program in the 2021 - 2025 period, with a vision to 2030.
Driven by the achievements of the Fourth Industrial Revolution and impacted by the COVID-19 pandemic, digital transformation is not only an inevitable trend but also a requirement for enterprises to achieve firm development.
As one of the leading enterprises in Thai Nguyen province, TNG is no exception to this trend. Even since 2007, the company has paid attention to disseminating and thoroughly informing each department and each employee of innovations and IT applications in order to create a foundation for stronger digital transformation.
TNG has gradually digitized production, sales and professional departments. Currently, most of the company's processes, regulations and targets are digitized and data systems are interconnected. Hence, its leaders clearly grasp production and business situations in each department and stage to make timely adjustments.
Using this software, employees will actively receive their assigned work plans for the day and capture their production results in a specific, timely manner. For the leadership, instead of spending much time grasping employee performance and their wages every day, it is now made available on the software.
Mr. Nguyen Van Thoi, General Director of TNG, said, digital transformation acceleration and IT application to operations have produced a lot of practical effects to TNG, helping it live through the pandemic but also achieve robust development. This is also the basis for TNG to develop plans, supervise and check its work in a quick and timely manner to have solutions to support weak links in order to achieve the common goal.
“Digital transformation is an inevitable trend, a cure to heal wounds and a lever for recovery and growth. We can't stay out of it if we don't want to be left behind, so we shouldn't be confused but need to quickly deploy digital transformation to get the earliest results. This is vital in the current period and in the future as well,” said Mr. Nguyen Van Thoi, General Director of TNG.
Not only applying to its own operations, TNG is also ready to advise, share and provide IT and digital management software for other companies. At the same time, as the Chairman of the Thai Nguyen Business Association, Mr. Nguyen Van Thoi regularly consults on digital transformation and organizes programs in this regard for the local business community and helps the province to realize the goal of having “700 digital enterprises” by 2025 as per Resolution 01 of the Provincial Party Committee.
With those efforts, TNG was awarded the Certificate of Merit by the Provincial People's Committee for its achievements in implementing the “Thai Nguyen fosters digital transformation program” in 2021, and the “Vietnam Digital Awards” by the Vietnam Digital Communications Association in 2021.
With clear goals and directions, dynamism and sensitivity, TNG is a success story for many businesses in the current context. Particularly, restructuring, digital transformation and development of supporting industries have helped it develop sustainably and create strong growth momentum in the new period.
By Vietnam Business Forum