THANH CONG TEXTILE GARMENT WITH THE NEW WIND
Related to the development strategy of TCG when E-Land Asia Holdings participate directly in the management, operation and business of the company; www.thanhcong.com.vn introduced Lee Eun Hong’s interview- the new CEO of TCG is posted on Nhip cau dau tu Magazine on 20/07/2009
Development strategy of the TCG will have many changes when E-Land Asia Holdings participate directly in the management of the company.
With owning 30% of charter capital, equivalent to 10 million shares, E-Land Asia Holdings (member of E-Land Group of South Korea has become the largest foreign partner’s Thanh Cong Textile Garment Investment Trading Joint Stock Company (TCG). Next time, the percentage of ownership will increase 39.5% and in the annual shareholders meeting held in April, TCG has adopted in order to issue additional 6 million shares to E-Land. Around this deal, NCDT had an interview with Mr. Lee Eun Hong, the new General Director of TCG.
Decide to purchase more than 10 million shares, has the buyer realized the potential of TCG?
Mr. Lee Enu Hong:Before that, we had hired the consulting firm which analysis profitability as well as the risks of the TCG, and the fact this is no small investment. But, On the side of E-Land, we also have more experience in this business (E-Land had bought large companies such as Haiti Distribution và Tae Chang Underwear), we know how to evaluate the potential and ability financial companies.
In TCG, in addition to traditional business sectors are textiles and garments, also have real estate, however, this market is not stable. Moreover, production cost are more and more increasing and legal system in Vietnam is not really stable so sometimes foreign investors is also difficult to follow. I think, in business, profits often come with risks.
For this business, E-Land will control both the management and business strategy of the TCG. So, in the future, the TCG’s strategy will have anything change?
Mr. Lee Enu Hong:First, business activities of TCG should be improved to increase profitability but it would take about two years. Everything will start from the improvement of technical and applied the highest standards of the garment industry. Regarding human resources, I found the workers here are not highly skilled than the region. In the Chinese market, number of hours workers can work not much in Vietnam but overall job performance is greater than. To improve this, we will invite experts and open training courses for employees. In parallel, the change in the way management is also essential. I think leaders need more skills and they must work with many people. Currently, the role of leader in the TCG is unclear and has not shown much power and was not balanced between relationships superiors and subordinates. But more important element of leadership is to have a commitment to the job you’re doing, that it must always achieve superior results.
TCG produce largely for export, how will it change when E-Land take part in?lt;p>Mr. Lee Enu Hong: I find that the yarn factory, knitting needles factory in the TCG is active only 70% capacity. To grow better, next time, we will push capacity to 100%. With support from E-Land South Korea, we are confident to make the good products: material ,mode, but reasonably priced. Besides that, we are interested in export channels.
It is known that in 2010, through the TCG, E-Land will expand the distribution network and offer big brands in Vietnam market. Could you share more about this plan?lt;p>Mr. Lee Enu Hong:An objective review, distribution system of the TCG is not developing properly. Thus, in the future, we will develop this category. However, the expansion, and product distribution depend on the results of market research. Brand wants to succeed first must meet the tastes of consumers. In my opinion, Vietnam is still potential market, especially for younger customers and women.
In the coming time, E-Land is planning to buy more shares of TCG?lt;p>Mr. Lee Enu Hong:We will invest more to achieve the maximum number of shares of foreign investors in the TCG. In the issue 13 million shares, the shareholders have bought 3 million so we only buy the rest. Combined investment is from the needs and will bring benefits for both sides.