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| Issue date:15/10/2009 |
| ATA Journal for Asia on Textile & Apparel - Oct 2009 Issue |
| Source:Journal for Asia on Textile & Apparel |
| by Ngo Tuan |
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| In a recent exclusive interview with Century Synthetic Fiber Corporation (Century Corp), Dang Trieu Hoa, President and General Director told ATA Journal how the enterprise weathered the slowing global economy |
Situated in Ho Chi Minh city, Century Corp, otherwise known as the Ky Yarn Company, focuses on the manufacture of quality polyester draw textured yarn (DTY) and polyester partially oriented yarn (POY) to serve the local market that remains heavily dependent on imported yarn supplies. The privately owned company meets the accelerating domestic demand in recent years and has seen fast growths.
First set up in 2000 with about 80 workers, the company expanded over the following years with three investment phases. Registered with a total capital of VND91.5 billion (about US$5.13 million) by July 2007, it is equipped with advanced technologies and equipment of Oerlikon Barmag from Germany.
Century Corp currently has an annual production capacity of 14,500 tons of polyester POY and 14,500 tons of polyester DTY.
Factory floor of Century Synthetic Fiber Corporation |
It provides yarns to textile and apparel enterprises, for intance, Formosa Taffeta Vietnam, a subsidy of Taiwan-based Formosa Taffeta; VN Tiong Liong; Paiho; Huge Bamboo; and Promax Textile. They are fabric suppliers of internationally known brand names like Nike, Adidas, Decathlon, Guess and Columbia.
Domestically, Vietnam’s leading garment producers like Thanh Cong Textile, Garment JSC and Thai Tuan Textile. Yarns of Century Corp were recognized for its quality at home with national awards: Top Trade Services Award 2008, Top 100 leading Vietnamese Brand and Medal for Consumer Protection.
Advanced machinery at Century Corp ensures high quality and consistency |
Compared to its fellow companies in the region experiencing negative growths, Century Corp was able to keep expanding amid the current economic slowdown.
In the first six months this year, the company witnessed a 45.9% increase in revenue to VND194.037 billion (US$10.9 million). The whole-year revenue is estimated to reach VND400 billion (US$22.4 million). All of its 350 workers continue working with stable wage and social welfare, Mr Dang told ATA Journal. In spite of decline in global market and whole Vietnam textile and garment, Century Corp still recorded a big jump in revenue due to its success in local market.
The local demand is big and many textile enterprises in Vietnam rely on the yarn supply of Century Corp because of the good yarn quality at a reasonable price.
ATA: Why did Century Synthetic Fiber Corporation decide to invest into the development of polyester filament? How much has your company invested into the business?
Dang Trieu Hoa |
Mr Dang: For the last ten years, textile and apparel is one of the key industries of Vietnam, being one of the largest foreign currency earning industry.
The environment for investment and business here offers a number of favorable conditions where the textile and apparel industry can benefit from.
As the scale of the textile and apparel industry has been increasing sharply in these years, there is a strong and rising demand for the materials, of which polyester filament is a major one.
Up to now, our current plant has been invested with US$17.5 million. We are now carrying out an expansion project with a plant that has capacity of 1.5 times more than the current plant. Thus, we planned to pour in additional US$19 million in 2010 and further US$13 million in 2011 to expand the plant and capacity. The expansion plan to increase production capacity is made as an increasing demand for our current products is expected in the near future.
ATA: Being one of the two major producers of polyester filament yarn in Vietnam (the other major one is located in Tay Ninh province), what are the competitive edges of the yarn in the country?
Mr Dang: There are more than two polyester filament yarn makers, but there are two major; Century Corp is one of these, possessing sufficient advanced technology to produce the high-quality products.
Our main products are polyester textured yarn of international quality. Our special strength lies in the fiber supply for high quality machines to manufacture knitted and woven fabrics, accessories and footwear under the orders of multinational firms such as Nike, Adidas, Columbia, Ikea, Reebok, Guess and Decathlon. Finished products (of clients) include felted fabrics, microfiber cloth, cotton trousers and cotton shirt vest.
At the moment, the competition of polyester textured yarn remains rather fierce in both local and overseas markets.
The spinning sector now requires highly professional management; enterprises offering high-quality products and reasonable marketing pricing strategy will have a higher chance to grow sustainably.
ATA: With a so far successful record in the industry, what are the major decisive factors for the success of your company?
Mr Dang: We have not confirmed ourselves that we are successful, although our plant has been equipped well with advanced technologies and machines, in addition to receiving professional transfer and training from foreign experts. Our products are in stable quality, attaining international standards.
Nonetheless, we go on striving better and improve our ability and power to reach higher heights.
Polyester DTY is a prime product of Century CorpPolyester DTY is a prime product of Century Corp |
ATA: Has the company been affected in the current global economic recession and how?
Mr Dang: The 2008 global economic crisis has affected seriously most industries in the region, including the textile and apparel. This is an economic law, but the market demand and supply is also being adjusted toward a balance. It is time, and there are opportunities, for enterprises to restructure their production and business operations to overcome such a harsh time.
Enterprises having a solid foundation and a long-term business strategy are more likely to survive and further develop.
ATA: Could you tell us how and what strategies is the company implementing to overcome such hard time?
Mr Dang: Crisis offers a good chance for enterprises to review themselves, especially areas for improvement to achieve sustained development.
Century Synthetic Fiber Corporation |
At Century Corp, we focus on promoting our internal ability. For example, we restlessly enhance our way of thinking and doing to reduce costs, increase operation efficiency and product quality. In such difficult times, bettering the competitiveness is a “must-do” and our obligation.
ATA: In your opinion, how will Vietnamese textile and apparel industry develop?
Mr Dang: There is a bright outlook for the Vietnamese textile and apparel industry, including a bigger exporting market as it is gaining shares in the world market (with its advantages such as lower production costs). If we execute comprehensive investment policies in sectors of materials, dyeing and apparel making, we will enjoy more added value in each of our products for export.
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| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
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| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
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