Vinh Phuc IP Tenants Overcome Challenges to Meet Targets

Tenants in Vinh Phuc's industrial parks (IPs) are now ramping up the "Excellent Workers, Creative Workers" program, refining techniques to boost productivity and product quality, while exploring new markets to meet their 2024 targets.

At Kohsei Multipack Vietnam Co., Ltd. in Binh Xuyen IP, employees are working overtime to fulfill year-end orders

Promoting the "Excellent workers, creative workers" movement

In recent years, Prime Dai Viet as well as other member companies of Prime Group have confronted fierce competition from tile rivals. To overcome difficulties, create differences and affirm its market position, Prime Dai Viet has invested nearly VND400 billion to upgrade six modern production lines with a yearly capacity of over 16 million square meters of products. At the same time, the company has implemented 3-time firing and HD digital printing technologies, using molds and sinking effects to create products with natural colors, extended durability and eco-friendliness. It also prioritizes employee training, supports the "Excellent Workers, Creative Workers" movement, and encourages staff to innovate and enhance techniques for the Vinh Phuc Tech Innovation Contest.

With a variety of sizes and designs, the company's ceramic tile products are not only popular in the Vietnamese market but also favored in many international and regional markets such as France, Thailand, Laos, the Philippines, Cambodia, South Korea, Taiwan and Malaysia, with exports accounting for an average of 25 - 30% of total output. In 2023, Prime Dai Viet produced and supplied more than 8 million square meters of various types of tiles to the market and earned nearly VND700 billion of revenue, thus creating stable income for nearly 400 employees with an average monthly salary of VND10.5 million each. Its revenue was expected to exceed the planned target by 10 - 20% in 2024.

To bring its products to the world market, in the coming time, Prime Dai Viet will continue to invest in upgrading machinery, technology, improve product quality and design, sharpen competitiveness and dominate the market. Besides, it will focus on researching and developing new products, applying ISO standards to ensure good product quality and reduce emissions to the environment. The firm will strengthen training professional qualifications and skills for management staff and technical skills for workers. It will build a strong distributor network, develop a professional showroom system nationwide, and meet domestic consumption and export needs.

As a 100% Japanese-invested producer and trader of flexible PP and PE plastic packaging and related accessories for export to Japan, South Korea, Singapore and other markets and about 10% for the Vietnamese market, Kohsei Multipack Vietnam Co., Ltd in Binh Xuyen Industrial Park is also applying overtime work to meet rising year-end orders. According to a company representative, the year-end demand for packaging from partners is quite high, to ensure quality and delivery time and fulfill all business targets in 2024, right from the start of the year, the company has invested in upgrading machinery, equipment and new technology; improved labor quality, enhanced productivity and planned raw materials; established a business structure staffed with local workers and furnished with advanced equipment systems to promptly meet customer needs under the operating motto of "Japanese quality, globally competitive prices and on-time delivery to anywhere in the world".

Aiming to become a major packaging manufacturer in Vietnam, Kohsei Multipack Vietnam will continue to invest and upgrade technologically modern production equipment in its two factories; improve product models such as 4-piece laminated bags, U-shaped laminated bags, round bags, square bags and big bags with guaranteed quality, durability and size to meet the needs of domestic and foreign customers; and create jobs and stable income for more than 700 employees, each of whom has an average monthly income of nearly VND11 million.

In Ba Thien Industrial Park, the Trade Union of Interflex Vina Co., Ltd also regularly launches emulation movements like "Excellent workers, creative workers", "High productivity, good quality" and "Green - clean - beautiful, safe and hygienic at work" to promote the creativity of workers. The Chairman of the Trade Union of Interflex Vina Co., Ltd said: "Currently, the company's Trade Union has more than 1,200 union members. Considering employees as valuable assets of the company, its leadership always encourages and promptly rewards outstanding workers and visits and presents gifts to individuals with technical innovation initiatives at their home.

As a result, its "Excellent workers, creative workers" emulation movement is increasingly effective. Each year, the company has about 200 technical innovation initiatives that are effectively applied to production, helping reduce production costs and improve labor productivity.

Prime Dai Viet focuses on employee development, fostering innovation, and continuously improving skills and techniques

Supporting businesses to overcome difficulties

Since the beginning of 2024, as global economic recession negatively hit their business performances and activities, many tenants in Vinh Phuc industrial parks have encountered difficulties and challenges from reduced orders and had to cut staff or terminate employment contracts with employees. Against this backdrop, Vinh Phuc province directed all levels and branches of authority to review and remove obstacles against enterprises while local credit institutions strictly followed the State Bank's regulations on interest rates, slashed deposit interest rates, reduced operating costs to maintain stable lending interest rates to support local companies in recovering and developing their business operations.

Seeing businesses as a pillar of the economy, especially with the view that no companies with good business plans fall short of capital, the banking sector in Vinh Phuc province has adopted many solutions to boost credit growth, maintain deposit interests and lending rates, facilitate all customers, especially corporate customers, to access preferential loans. As of October 2024, the total outstanding loans of local credit institutions reached VND139,489 billion, a year-on-year growth of 13.3%, of which outstanding short-term loans were over VND100,500 billion, up 8.2%, and outstanding medium- and long-term loans were worth VND35,985 billion, an increase of nearly 1.9%.

The State Bank of Vietnam - Vinh Phuc Branch directed credit institutions to effectively carry out the Bank - Business Matching Program. Credit institutions have also actively implemented soft loan programs for enterprises, focused on priority areas and fields, to motivate borrowers to overcome difficulties and maintain production and business.

Particularly, as an administrator of local industrial zones, the Vinh Phuc Industrial Zones Management Board has actively supported, facilitated and quickly resolved administrative procedures for investors and enterprises to implement projects, expand production and business, increase investment capital, or carry out procedures to adjust and supplement project targets and project progress. As a result, many enterprises have overcome difficulties, maintained stable production, and signed new orders to provide more jobs for workers. Eventually it has helped boost local socioeconomic development.

In the coming time, the board will focus on addressing challenges and supporting industrial park tenants, improving the investment and business environment, and helping reduce costs. It will prioritize tenant feedback with a commitment to sharing, understanding and assistance, in line with its core principle of "Placing businesses at the center of development." The board will continue to effectively handle feedback on investment and business-related issues, strengthen post-investment support, and prevent disputes. Additionally, it will accelerate administrative reforms, utilize information technology for better management, and offer full-process online services to foster a conducive investment environment.

With the timely support of all-level authorities and their active efforts to overcome difficulties, tenants in Vinh Phuc industrial parks have boosted their business performance, completed signed orders, and launched new product lines onto the market. This is also the driving force and foundation for them to work out business plans in 2025 and the following years.

By Nguyet Tham, Vietnam Business Forum