Phuong Linh & Bystronic: Developing in partnership

After reviewing a number of metalworking exhibition in Vietnam over the past few years, and talking to a whole host of companies manufacturing an array of machinery for industry, it was finally good to have an opportunity to interview a company that actually uses the machines that are on show at these events.

After covering the MTA Vietnam exhibition held recently in Saigon, I had the opportunity to interview Mr Daniel Nauer, Senior Vice President, Market Division of Bystronic Asia, and Australia, manufacturers of high end laser cutting and bending machines. So it turned out to be a very pleasant surprise when I got the opportunity to talk to an actual company here in Vietnam that are end users of this high-end technology.  

Phuong Linh Trading & Electrical Engineering Production Co. Ltd is a manufacturer of commercial and industrial exhaust fans operating out of Hanoi Vietnam. Like many SMEs here in Vietnam, Phuong Linh comes from humble beginnings some 14 years ago, and in that time have grown and developed a strong domestic market presence. Phuong Linh are part of an industry growth Vietnam has been experiencing for some time now, and they are also part of a new breed of Vietnamese manufacturers that had realised the need to upgrade their technology to compete more successfully in the market place through improved operations, productivity and quality.      

When up in Hanoi recently on assignment I had the opportunity to catch up with Mr Tran Van Le, Phuong Linh’s CEO and asked him about his company, their products, and how implementing high-end Bystronic technology had changed their operations.

IMNA: How long has Phuong Linh been in operation for, and what are the products your company manufactures?

Tran Van Le: I guess the idea of Phuong Linh started back in the 90s, when I was a young engineer with a business that repaired industrial and commercial equipment. But the business really started in 2000 when Phuong Linh started operations with manufacturing our own industrial fans. Since our humble beginnings some fourteen years ago, we have developed quite a large range of products for a whole array of industries such as construction, manufacturing, and the hospitality industry, to name a few. Presently we manufacture products such as centrifugal fans of varying pressures, axial fans, roof exhaust fans, cooling fans, duct inline fans, Industrial ceiling and wall exhaust fans, dust collectors, ventilation systems, motors, spare parts, and the list goes on.

IMNA: Regarding the sales of your products; is your target market domestic or is there an export element to your business?

Tran Van Le: Up until recently our sales focus had been predominantly the domestic market, but as with lots of companies here in Vietnam that have developed their products to an international standard, our strategy for the future incorporates a big push into the region and broader global markets. Another factor that pushes our export strategy is the fact that it’s a very competitive market here in Vietnam, and we’re competing against cheap Chinese imports and some well-established international brands, so it’s important for us to start to develop our own brand recognition to the broader international markets. Domestically we are well positioned to service the local market with our head office, manufacturing and sales office in Hanoi, and sales and service offices in HCMC in the south and Da Nang, which is looking after the central region of the country.

IMNA: How would you say your products compares to your competitors?

Tran Van Le: Over the last 14 years we have developed our products to a very high standard and have achieved ISO certification in a number of areas of operations including quality assurance. So we are happy with how our machines stand up against our competitors. I would say we’re more in the mid-price range when compared to the cheaper Chinese imports and some of the more high-end international brands. But it’s not only the sale of the machines that customers are looking for but the whole after sales package. Customers here in Vietnam need to trust they can call on you if problems arise, so at Phuong Linh we offer a quality product, an excellent service warranty and technical support if required.  

IMNA: In the past 10 years there has been a marked increase with Vietnamese companies investing more heavily into high-end technology to improve their operations, product quality and export potential. Just over 12 months ago Phuong Linh was one such company, when you purchased two high-end Bystronic machines; their ByJin 3051 laser cutter and an Xcel 100 bending machine. What motivated this investment, and how has it effected your operations.

Tran Van Le: Vietnam has seen many changes over the last 20 years, and has been experiencing an amazing growth in industry and manufacturing, particularly in the last 10 years. With this rapid growth has also come a need to learn fast and develop our products that meet international standards as the benchmark. It became obvious to us at Phuong Linh that if we were to grow the business domestically and develop our export market that we were going to have to develop a more progressive approach to our manufacturing operations. When Vietnamese companies started entering the market there was a great deal of apprehension about investing heavily into the high end machines, so there was more of a tendency to purchase low end or second hand machines. However, as the industry matured and started to export more products overseas there became a need for improved efficiency and product quality. Purchasing the Bystronic Laser Cutter and Bending Machine was one of the best things we’ve done. The savings we make through minimising waste, increased production output and improved product quality has exceeded our expectations. Additionally, the operational transition was made very easy with Bystronic’s assistance and although they provided equipment training, this wasn’t a difficult process as the machines are easy to operate. But I’ll be honest, it was a difficult choice at the time as it was a big investment for us, but we’re more than happy that we took the gamble.

IMNA: As you mentioned before, Vietnam has been experiencing a tremendous industry growth in recent years. Do you see this growth continuing into the future?

Tran Van Le: I guess our investment into the Bystronic Laser Cutter and Bending Machine testifies to our optimistic outlook to Vietnam’s economic future. Vietnam is still maturing as an economic presence on the global stage, but with the increase investments into high end technology, and company’s such as Bystronic supporting industry development, there’s no reason for this positive growth not to continue. Additionally, Vietnam has maintained an image as a desirable destination for foreign investment, with a lot of companies setting up manufacturing facilities as China becomes less of a desirable option, and the flow on from this development has proved to be more than profitable for a lot Vietnamese SMEs. At Phuong Linh we understand that a continuing investment into technology is going to be required to maintain this growth, but after our experiences with Bystronic, this investment won’t be so scary in the future. 

Exhaust fans

Industrial exhaust fans finish products