By actively securing the input by investing in planted forests and adopting the “formula” of geo-bound contract for close-customers, Hao Hung Co., Ltd is completely free from the impacts on the manufacturing industry.
* In 2023, Vietnam’s wood manufacturing industry encountered a lot of setbacks. The businesses were depleted of orders. However, Hao Hung has kept growing, as one of the industry’s top three exporters. What are the keys to this success?
– Being proactive has kept us alive. Our 24-year experience within the industry has granted us the vision of having a long-term business plan. Specifically, we have engaged in planting forests, in particular the large timber forests, to actively secure our material input. Following up, we establish a strong connection with our customer base using geo-bound contracts. Such has given us a more active footing against the material supply hardships.
On the other hand, we have established and put a logistics system into operation. Our international transport and seaport operations allow for great ease in transporting while also contributing to our revenues.
*Are you satisfied with the export turnover of USD 228 million in 2023?
– Our primary business is wood chip trading. We have orders from our existing customer base while also exploring the new potential. However, we still experience some inevitable decline in profits. In the tumultuous global context, to survive is our top priority. We will put in even more effort in the
coming time.
*As one of Vietnam’s 500 biggest companies, what are the secrets behind this constant growth over the last 2 decades?
– The gist of it is to maintain our reputation with the customers in terms of quality and competitive pricings. Our principle when operating the business is to adhere to the commitments made towards our customers.
The second principle is to ensure the quality of our manpower while pushing forward the technologies. Hao Hung currently employs 5,000 people across 35 factories nationwide. Compared with other companies, we do not maintain a robust labour force, instead transforming towards using robots to handle physical labours for humans, towards automation much early on. Our timber and plywood processing lines are modern and with high adoption of technology.
Our primary labour consists of machine operators. Last year, we did not have to cut down our labour force; instead we did recruit more people to operate our newly established factories and plywood processing lines in central Vietnam. To keep them loyal and committed, we maintain an adequate, legal salary and incentive system. On top of that, we upkeep other benefits such as paid leaves, company trips and recreational activities annually, depending on our business outcomes. I feel very proud, because we are in possession of a force of highly skilled and deeply committed labourers who work for us for a long time.
* What are the benefits brought about by investment in technology?
– The most noticeable is our capacity for delivering high quality products while cutting down the labour costs and production times. In addition to the modern assembly lines with advanced technologies from other developed countries, Hao Hung is very selective with our input of material and auxiliary material, always following the standards and meeting demands of both import and export.
No investment in machines and technologies can achieve the highest efficiency if the business does not make the right choice, relevant to their demands, operations, or does not properly structure their production lines. Moreover, it has to pay attention to the transfer procedures and training from the experts. Thanks to such rightful attention, Hao Hung currently possesses a strong, competent and highly skilled labour force, with a lot of experience in plywood and MDF products.
* The local businesses seem to have only started growing the export markets in 2024. Besides the main markets of the USA, India and China, what are the markets you will come to next?
– Not only expanding our traditional markets, Hao Hung sets ourselves to expanding our business models, enhancing our modern sales channels. We stay focused on the US market because of the great growth potential it still offers.
Hao Hung also directs ourselves towards Canada and Europe, because currently timber and plywood products are being considerably purchased through e-commerce platforms. We wish to deliver only more products, with more business models, traditional and new, to our customers.
* How about the local market?
– It is growing fast. Hao Hung has always tried to approach local customers, though not many. We have to try even harder.
Perhaps in 2024, the wood industry still has to face a lot of hardships, but others opine that things will pick up from the second quarter. We, of course, are ready to anticipate both challenges and opportunities presented to us: our wide range of products, our conducted market research both local and international. This year shall be the moment we consolidate our manpower and build our sales team to become more modern and professional, ready for the future.
* Thank you.
By Phuong Hong Thuy
