(VEN) – In a difficult situation, the factor that helps Norfolk Hatexco overcome crisis is strengthening its financial position and placing itself in an enviable position in the years to come. Vietnam Economic News’ Hoa Le and Nguyen Huong talked with General Director Royce Kwok.
Mr.Royce Kwok-General Director
The economy is facing difficulties. Have you been affected by the situation? What can you do to strengthen your position and brand name in the market?
It is an inescapable fact that the slowdown in the economy as a whole has affected global businesses. At Norfolk Hatexco, we anticipated the slowdown 12 months before the global slowdown came to bear. We took corrective measures to minimize the impact.
Due to drop in sales by up to 12 percent in 2012, the actions taken in 2012 were to streamline the cost of doing business in line with the lower sales volume. The changes made were the use of automation to lift productivity, efficiencies and the introduction of just in time flow of material to minimize financial outlay. The actions we took have significantly strengthened the company’s financial position and placed us in an enviable position in the years to come.
In 2013 we turnaround the business, our sales increased by more than 50 percent and we have at any one time in excess of a few thousand people throughout Vietnam producing garments for our global customers.
The Trans-Pacific Partnership (TPP) Agreement would help Vietnam’s businesses, including those in the garment and textile industry, boost their exports and remove the current heavy taxation barrier. What have you prepared for the event? What opportunities and challenges could you see?
When the TPP Agreement is in place, the agreement will undoubtedly benefit the larger textile companies that can offers a complete supply chain, from yarn to garments.
Conversely small and medium size garment operations benefit is limited from TPP agreements because a complete supply chain to achieve competitive advantage is not readily available to all local garment manufacturers.
What small and medium size garment operators wants is a local source of suppliers of strings, to yarn spinners, to fabric weavers and to knitting and dyeing mills. These supplies are presently limited.
For the garment business to grow, the garment industry urgently needs the government participation. The assistance is by way of engaging both TPP participating country members and non-TPP countries to set up shop in Vietnam to supply strings, to yarn spinners, to fabric weavers and to knitting and dyeing mills to all small and medium size garment businesses.
The compelling reason for the government involvement is that small and medium garment manufacturer contributes in excess of 60 percent of employment and has the potential of creating more jobs. This is a compelling reason for the government to attract suppliers of strings, spinners, weavers, knitters and dyeing mills to set up local presence to support the local garment industry.
Many companies are concerned about environmental protection. What about you?
Before the barrier to growth in the garment, industry was import quota. Now that import quota is no longer applicable the challenge is technical and environment protection issues. These challenges are factory compliances, as well as other issues that affect the environment.
The key environmental issues that requires affirmative actions are the reduction of energy usage through the utilization of natural energy resources, water treatment, dust control, noise reduction, and waste recycle, reduction of carbon and minimization of air pollution. They are now the driving focus to meet with global environmental standards from global purchasers now and in the near future.
In lieu of the need to practice responsible environmental friendly mechanism for the manufacture of garment, we at Norfolk Hatexco have a plan to reduce energy outage by 30 percent. We do this by replacing energy saving lighting in place of conventional lighting to alternative source of lighting.
The alternative sources of energy to reduce energy are the replacement of high wattage lighting to lower wattage compact fluorescent light bulb and the use of light emitting diodes technology, sometime called LED lighting and the use of natural light.
Do you face any difficulties in doing business in Vietnam? Do you have any recommendation to the Vietnamese Government in order for it to attract more Singaporean investors?
There are an absence of skilled people and experienced middle management people. The cost of business increased each year, leading to lower return on investments and diminishing competitiveness because of productivity challenges.
In order to resolve the productivity challenges, we recommend to the government to set-up more vocational training centers to train the work force to acquire skills and education on the importance of productivity and leadership./.
Hoa Le & Nguyen Huong
Đăng ký: VietNam News
