Efficient operations to navigate the international market

When most people think of the Da Nang region of central Vietnam, it would be normal to imagine long sun-baked beaches and 5 star tourist resorts. However, this is somewhat of a misconception as Da Nang has transformed over the years.

Being the third largest city in Vietnam, Da Nang has experienced amazing growth over the past 20 years, not only related to its tourist boom, as various manufacturing industries have also seen the benefits of setting up shop in this special part of the world. The province has become an attractive investment location owing to its rapidly growing consumer population and favourable incentives to investors.

One such company, INT Plastic Limited, saw the benefits of this location and started operations just outside Da Nang in 2019. International Plastics News for Asia correspondent in Vietnam, Anthony Evans, had the chance to talk to Mr. Dao Ngoc Hung, Managing Director of INT Plastic, who provided an interesting account of the company’s products and the advantages of having its operations in Vietnam.

You started operations just outside Da Nang in 2019. What was the motivation for choosing this region?

Mr. Hung: There were several reasons for our choice in setting up operations in this part of the country, such as close access to a thriving shipping port, an international airport, transportation covering our logistical needs, access to a suitable workforce, and support from the local government, but I guess the fact that I come from Da Nang was also an influencing factor.

You started operations in 2019 just before the pandemic hit. That must have been a difficult time for a new company. How did you manage the business risks associated with this difficult period?

Mr. Hung: Yes, the pandemic months were difficult times for everyone, and in a way, we are still feeling the effects of that unfortunate period. Despite the challenges, INT Plastic kept moving forward in developing our export business. As with most companies, we focused on looking for opportunities, avoiding laying off trained employees, and seeing ways of developing the business once the pandemic had subsided. We are still not operating at full capacity but we are optimistic about our growth. Presently we have about 130 employees, which will increase in the future as we develop.

Tell us about the types of products you manufacture.

Mr. Hung: As we promote to our customers, “We specialise in plastic injection moulding as required." We produce only smaller items for several different industries such as engineering, industrial parts, and some household items. Furthermore, we offer assembly services for electronic components and machinery parts to fulfil the demands of our customers. Additionally, with several of the products we produce for clients, we also manufacture the packaging for completed items, which includes laser marking and printing on the finished product as well as the plastic and printed cardboard packaging. At the moment we don't produce anything to sell directly to domestic customers; we solely produce for export. Although we are considering manufacturing some items for domestic sale in the future. But presently we are content at focusing on developing our international client base where we see bright prospects.

What type of raw materials do you use in your operations, and where do you source your raw materials from?

Mr. Hung: Our products are made from various plastic materials such as PVC, ABS, PP, PA, HDPE, PS, PET, among others. Additionally, a range of sizes and colours are available to facilitate customer selection. Our raw materials are sourced predominantly from Taiwan and China as Vietnam is not a producer of these materials. Also, as we manufacture specifically for the export market, we produce according to the customer's requirements regarding the type and quality of the raw materials we use.

When operating in the export market, quality assurance is a vital part of success. What is your company's approach to quality assurance?

Mr. Hung: Yes, that's very true, quality assurance is an important part of our export operations, and we strive hard to ensure that our products meet the standards required. We are certified with the ISO Standard on Quality Management Systems 9001, which
we adhere to at a high level.

All of our products are inspected at every step of manufacturing as the quality of the finished product is the way we keep our customers satisfied. As any successful company will testify, you don't want to sell to the customer once, but for the rest of their
lives, and the quality of the finished product is paramount to the success of this strategy.

Which countries are you presently exporting to?

Mr. Hung: At the moment we are exporting to the United States, Canada, Australia, Japan, and some EU countries such as the Czech Republic. However, now that the international supply chain is slowly recovering after the effects of the pandemic years, we have developed business strategies to increase this number in the near future.

How about INT Plastic’s choice of injection moulding machines and the making of your molds, is any of that sourced locally?

Mr. Hung: Regarding the manufacturing of our moulds, we outsource that to a company in China. The reason for this is that Chinese companies have had many more years of experience with precision mould-making. Vietnam is getting better, but we need to source the best to achieve our product quality standards. We operate several smaller injection moulding machines, which we use in the prototyping of new products. We also have laser engraving, product and label printing machines, and our packaging division also operates a variety of machines for their specific purpose.

Concerning our choice of injection moulding machines, the ones that do the hard work; we use Haitian high-end machines, manufactured in China. As I mentioned before, China has years of experience in manufacturing injection moulding machines, and their quality, price, and after-sales service are hard to beat. But the main reason we use Haitian machines is they produce the quality of product we require for an international market.

Operating in the international markets requires a specific approach to marketing your services/products. Is there a particular marketing strategy you use to attract new international customers?

Mr. Hung: We have participated in several industry exhibitions held in Vietnam, conducted some business seminars explaining our services, and we are always responding to online inquiries. We will continue with the exhibitions and expand our network, however, we are in the process of developing a more aggressive marketing strategy for the coming year.

Concerning your company's plans for the future, is there a particular strategy you are focused on regarding business development and growth?

Mr. Hung: Being a relatively new company, and just coming through some very difficult years, our main priority is to achieve full operating capacity within the next 12 months. Presently, we are developing new product lines with our international customers, particularly those from the US. However, continuous improvement of our existing operations will also be a big part of our strategy for the coming year.