Together with accelerating digital transformation, e-government and smart cities, the business investment environment of Thua Thien Hue province is also increasingly open and trusted by investors. Hanex Hue Co., Ltd. is one of the first producers of apparels, backpacks and handbags in the province. Vietnam Business Forum’s reporters have an interview with Mr. Lee Dong Youb, Director of Hanex Hue Co., Ltd., on its business performance, working environment and contributions to local socioeconomic development.
Korean Consul General to visit Hanex Hue Factory in April 2022
Why did Hanex choose Thua Thien Hue province as an investment destination? What are local advantages and disadvantages in investment?
Before investing in Vietnam, officially in Thua Thien Hue province in 2016, Hanex conducted an assessment survey on the local investment environment and found that there were many favorable factors.
First, the province has an open business investment environment. Local authorities are ready to support investors from project preparation, administrative procedures, land access and construction to investment incentive policies.
Second, the synchronous infrastructure enables convenient transportation. Chan May Deep-water Seaport, Thuan An Port, Phu Bai Airport and North-South Railway are favorable for developing the commodity economy and for expanding exchanges with localities in the country and the world.
Third, the labor force is quite abundant, with very skillful workers. Hanex is specialized in backpack and bag manufacturing which requires ingenuity and meticulousness. The local workforce responds well to these requirements.
Thua Thien Hue has a great advantage in attracting investment, especially towards South Korean businesses. The province needs to better exploit and promote these advantages to create a driving force for socioeconomic development.
Could you please briefly introduce Hanex Hue's operations, investments and business performance after five years in the province?
In 2016, at the Thua Thien Hue Investment Promotion and Tourism Development Conference, Hanex was awarded the Investment Registration Certificate for the Hanex Hue Garment Factory. The project, which has a total registered capital of VND222.6 billion (US$10 million), manufactures backpacks and handbags for export to South Korea, the United States, Japan and China.
After effectively stabilizing production and business, the company's manufacturing and export stalled due to COVID-19 pandemic outbreak, insufficient workers and input supply disruptions in 2020 - 2021.
However, with the ongoing effort of the company's leadership and the support of all levels of government, Hanex Hue has restored and developed its production and business operations. The firm is estimated to make 5 million products, earn US$20 million of revenue, and employ 900 employees, mostly local people, in 2022.
Beside strong business performance, the company also pays special attention to rights and interests of employees as well as to the locality with many social and security activities. Hanex Hue is proud to be one of the foreign direct investment (FDI) firms that has made great contributions to sustainable growth of Thua Thien Hue province.
Do you have any advice or suggestions for South Korean businesses seeking to invest in Thua Thien Hue province in the coming time?
As far as I know, Thua Thien Hue province is stepping up investment attraction, especially from South Korean companies, for locally strong areas such as infrastructure development in industrial parks, urban areas, and non-tariff zones; logistics services; manufacturing and processing industry; supporting industries; electronic industry; biotechnology; high-tech agriculture; creative industry; tourism; education and training; cultural and people-to-people exchanges. The province has an attractive investment environment, abundant labor force, stable social and political settings, developed production infrastructure and investment incentive policies.
Companies that intend to study opportunities and invest in Thua Thien Hue need to have well-prepared investment plans and quick execution to choose favorable locations to place their projects and factories. In addition, in operation, they necessarily harmonize its interests with those of employees and well exercise social responsibility to the community and the locality. This is very important for them to develop sustainably and achieve success in Thua Thien Hue.
Thank you very much!
Source: Vietnam Business Forum