Packaging for every need

ONE of the leading companies in Viet Nam is Long Thanh Plastic. Its CEO Phạm Trần Nhật Minh, shares the successes and challenges the company faces in developing and growing a plastics manufacturing business in the country.

Phạm Trần Nhật Minh, CEO, Long Thanh Plastic

When was Long Thanh Plastic established and what products and services are on offer?

Long Thanh Plastic started operations in the early ‘90s and was founded by Pham Van Muoi, a man with a great vision for developing plastics manufacturing here in Viet Nam. Long Thanh Plastic manufactures a wide range of products made from various materials such as industrial high performance plastic which produces products such as storage pallets, industrial trash cans, crates, containers, parts for the electronics industry and even motorcycle parts. We also offer other packaging items, like bottles, and other containers for companies making lubricants, cosmetics and the pharmaceutical products, as well as some household and promotional items. Additionally we also provide an extensive service in precision mould design and manufacture.      

Can you name some of your customers?

We have a long list of local and global companies as customers. We provide packaging for Heineken, Coca Cola, Pepsi, Number 1, Sai Gon Beer, Coors Light, Zorok, X-men, My Hao, to name a few. In general you could say that Long Thanh Plastic is in the business of providing plastic packaging and storage solutions for just about any industry and purpose. Our customers understand that quality, speed and efficiency are the foundation of Long Thanh Plastic’s mission statement, which provides them with the confidence and assurance they need to operate in a competitive market

You just mentioned a number of beverage companies you supply with product, but what are some of the other industries you cater to?

Apart from the beverage industry we also cater to the agricultural industry, aquaculture, pharmaceutical, garments, automotive, agricultural chemical industry with companies such as Syngenta, ADC, Bayer, and as I mentioned previously the electronics industry which is experiencing a healthy growth here in Viet Nam with companies like Samsung investing heavily in country. When large multinationals start investing and setting up manufacturing, they start to look seriously at local manufacturers to produce parts that would cost them greatly if they had to rely on imports, which in turn creates great opportunities for local manufacturers. 

Is the regional and international markets part of your sales strategy?

Apart from the domestic market, which we are constantly developing, we also concentrate our sales efforts within the Southeast Asian markets with neighbouring countries such as Loas, Cambodia, Malaysia, and the Philippines. Taiwan, Japan and Korea are also regular customers, and we also have a presence further afield in Australia and Russia. In 2012, Long Thanh Plastic opened a sales branch in the United States, and with the completion of our new state-of-the-art production facility in Viet Nam in the near future, Long Thanh Plastic will be in a very strong position to continue our global expansion. So regarding our sales strategy it would be safe to say we have a big vision and always looking for new opportunities within the domestic and international markets.

Long Thanh Plastic’s factory and headquarters at Binh Tan District in Ho Chi Minh City

Has ISO standards impacted on how the company has developed? 

Long Thanh Plastic has applied ISO standards for 13 years now, which has been an integral part in the company’s development. Thanks to the application of ISO standards we were given the tools to improve management efficiency, reduce costs, and improve product quality and safety to satisfy the increasing demands of customers. Our application of ISO quality management systems, particularly relating to ISO: 14 000 (Environmental Management), ISO: 22 000 (Food Safety Management) and ISO 50 000 (Energy Management), will continue to be the foundation of our operations and future expansion

How has the company positioned itself with regards to operating in a competitive market? 

A competitive market it certainly is, and there’s always someone ready to give it a go when they see a business opportunity. But Long Thanh Plastic has spent 20 years building its reputation and brand name within the domestic market to become one of the market leaders.  We also invest heavily into new technologies which gives us a competitive edge with our operations, price and product quality. But putting product and price aside, one of our great competitive advantages is our extensive loyal client base, which we work very hard at retaining. Like a lot of businesses, we don’t see competition necessarily as a bad thing; after all, it stops us from being complacent and gives us a good reason to strategically plan for the future. 

You mentioned Long Thanh Plastic invests heavily into new technologies to increase your competitive edge. Could you explain a little bit more about how new technologies fit into the company’s overall development strategy? 

Investment in technology has always been an important part of Long Thanh Plastic strategic vision, and we regularly update our machines to best meet the every changing need of our customers. Viet Nam has come a long way over the past 30 years, and the general pattern in the early days was to avoid over-investing and playing it safe by purchasing low end or old second hand technology. However, as manufacturing matured in Viet Nam more companies came to understand the importance of using advanced technology in the manufacturing process to improve product quality, safety, and at the same time cut waste and improve efficiency, which all adds up to better profits.

With many western countries still struggling to survive this current global economic downturn, how does Long Thanh Plastic see the future for plastics manufacturers in Viet Nam over the next 5 to 10 years?

Long Thanh Plastic has always kept a steady annual growth, and we’ve been able to do this for many years now, so we stay focused on maintaining this steady growth and keeping ahead of our competitors. As I indicated earlier, one of Long Thanh Plastic’s advantages is currently our large and often long-term customer base, which translates to healthy long-term sales and growth; saying that however, we still have a strategic approach to the company’s future, we’re just a bit secretive when it comes to details. Regarding the economic climate here in Viet Nam; well if 2013 is anything to go by, the future does look very bright indeed. 

The last 12 months saw a huge growth in the Vietnamese fisheries and agricultural sectors, and a number of other ancillary industries all requiring plastic products as a key part of their products value chain or service. Long Thanh Plastic is confident about the next 10 years, and the increasing demand for quality plastic products here in Viet Nam. You could almost say the time has come for the Vietnamese plastics industry, a coming of age.