Local businesses going through crunch time

The economic downturn has taken its heavy toll on businesses, causing many to file for bankruptcy and halt production. Other businesses had to restructure themselves to keep their operations purring along.

Many businesses in Binh Duong and other provinces in the South-eastern region are exerting a greater effort to weather the storm.

MTV Garment Company in Binh Duong province is a case in point. It has poured intensive investment into auto production lines, helping improve labour productivity and cut production timing by 17-18%.

It has also diversified product designs and run refresher courses to improve employees’ professional skills.

Since 1999, MTV has applied free on board (FOB) models for orders from the US and Europe. With its annual two-digit growth, the firm has been voted as one of the best Vietnamese garment makers.

These days, more than 2,500 employees of the company are working on intensive shifts to meet orders from Germany and the US.  

So far this year MTV has fulfilled its yearly set target of earning US$41 million, and revenue is expected to amount to US$56 million by the end of 2013, a year-on-year increase of 30%.

The company has even signed contracts for shipments till the second quarter of next year.

Nguyen Hong Anh, MTV Director in charge of human resources, says German importers proposed doubling shipment numbers in the coming months.

Another shining example is Nghe Nang – a small-and-medium-sized enterprise specialising in producing industrial fans, cooling equipment and waste treatment facilities. Its Ifan brand has gained consumer trust, securing nearly 30% of the local market share. 

The firm’s success is attributed to its technological renovation and improved quality of highly efficient and durable products.

Many foreign businesses from Taiwan, Japan and the Republic of Korea in Dong Nai and Binh Duong industrial zones use Ifan products in their factories.

Nghe Nang has set up a special fund for technology research and innovation to improve product quality. The company has built manufacturing plants in many localities across the country, and has recently opened a sales agent in Myanmar.

Luu Tri, Director of Nghe Nang company, says his firm is focusing on applying automatic technology to increase product quality and lower production costs. “We are trying to produce distinctive goods on the local market,” he adds.

Nghe Nang and MTV Garment are among more than 150 outstanding businesses honoured by the Binh Duong provincial People’s Committee at this year’s Vietnam Entrepreneur’s Day (October 13).

Vo Son Dien, Chairman of the Binh Duong Young Businesses’ Association, says building trademark and promoting technology renovation are considered key to business success, especially for small-and-medium-sized enterprises (SMEs).

The Republic of Korea has sponsored some representatives from Binh Duong-based businesses are encouraged to attend training courses abroad to increase capacity and update latest technologies, using aid from the Republic of Korea.