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Choose Dong Nai because it is the center of industrial production

After a period of investment in the province, many foreign direct investment enterprises operating effectively have increased their capital many times compared to the first. To know more about this, Mr Lee Sam, Director of Men-Chuen Vietnam Co., Ltd in Nhon Trach 6 Industrial Park (Nhon Trach District), one of the famous enterprises in the field of fabric production shared about this.


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Mr Lee Sam, Director of Men-Chuen Vietnam Co., Ltd

Men-Chuen Vietnam Co., Ltd has 100% investment capital from Taiwan, specializes in manufacturing fabrics for the textile and footwear industry. After more than 6 years of effective operation in Dong Nai, the company has tripled its investment capital.

*What made you choose Dong Nai as the place to locate your factory for the first time to expand overseas investment?

 -In Taiwan, I have a number of factories producing yarns and fabrics for domestic and export markets. In particular, there were many customers in Vietnam, so I decided to invest in Vietnam in 2013 to create favorable conditions for the company's partners. Through studying the investment environment in the provinces, I chose Dong Nai because it was the center of industrial development of Vietnam. In the province, there are many foreign investors operating in the field of textiles, fibers, and footwear, which is very convenient for the company in finding output for products. At the same time, Dong Nai is a traffic hub connecting with many southern provinces, which is very convenient for transporting goods to other provinces. In 2014, the company completed and put into operation the first factory in Giang Dien Industrial Park (Trang Bom District), with a total investment of 10 million USD. By 2020, the Company decided to invest an additional 30 million USD to build a factory in Nhon Trach 6 Industrial Park.

*What is the biggest barrier for your company to invest in the province?

 -The field I invest in is the supporting industry for the textile and footwear industry, so the provincial government very supports. Therefore, all investment procedures of the company are supported by the province, the Management Board of industrial zones, and the industrial park infrastructure company. Problems related to investment procedures, taxes, import and export of goods were promptly removed. Therefore, I decided to increase investment capital to build more factories in 2020 in Nhon Trach district. This factory is expected to be completed and put into operation from August 2021 with a capacity of about 300 tons of textile product/month, create jobs for about 300 workers in the locality and other provinces. However, the company's biggest difficulty is finding skilled workers. Most of workers can master the technology to work after recruiting, the company spends more little time on trainning.

*What areas are the company's products supply?

 - Men-Chuen Vietnam Co., Ltd manufactures fabrics and supplies 65% to enterprises in the domestic market, 35% exports to ASEAN countries such as: Thailand, Indonesia, Philippines, Cambodia. As I said above, the main purpose of investing in Vietnam is to create favorable conditions for both company and its customers in Vietnam. Because Vietnam has signed a lot of Free Trade Agreements (FTAs), export goods want to enjoy tax incentives must meet the requirements of the localization rate of the product. My investment in Dong Nai will bring advantages to both my company and the buying partner. On the side of my company, reduce shipping costs, shorten delivery time, customers are provided with raw materials in Vietnam to ensure the localization rate of products and take the initiative in production, increasing the competition capacity with goods of the same type when exporting to countries that Vietnam has signed FTAs ​​with. Besides, the export company's products also enjoy advantages from FTAs.

*What secrets do you have to help the company to overcome difficulties during the Covid-19 pandemic and continue to expand production?

 - The Covid-19 pandemic caused Men- Chuen Vietnam Co., Ltd. to be severely affected in the middle 3 months of 2020,  then the company recovered. Previously, garment and footwear manufacturing companies in Vietnam had to import a lot of fabrics from China, Korea, and Taiwan. When the Covid-19 epidemic occurred, many factories stopped working or reduced capacity, affecting the supply of raw materials, companies had to find raw materials in the country and other countries to compensate. I took this opportunity, researched the market, quickly launched the quality products that businesses need at competitive prices, so it was easy to find new customers. Accordingly, orders came to the company relatively abundant, I decided to expand production to meet domestic customers. At the same time, from the end of 2020, industrial production in other countries started to recover, the demand for fabric imported from Vietnam is quite large and this is also an opportunity for my company and businesses in the same field to recover and expand production and export.

Thank you Sir!​

Author: Vi Quan

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