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State owned Thuong Dinh Footwear excels in performance

Feb '06
Thuong Dinh Footwear Company produced about 6.5 million pairs of all types of footwear in 2005, of which, 50 percent accounted for exports.

For fiscal year 2006, the company targets at a year on year growth rate of 15 percent and it seems feasible as the company's productivity in January has taken off on a very impressive note.

Within a week – breaking time after Vietnamese traditional Tet holiday, Thuong Dinh produced on an average 10,000 pairs per day that included canvas shoes, sports shoes, sports leather shoes and sandal of all types.

In just 21 working days in January, the company attained a remarkable productivity of 250,000 pairs, of which 200,000 pairs have been exported. Thereby, the company's production value and total turnover reached VND 10 billion (US $0.628 million) and VND 20 billion (US $1.257 million), respectively.
As regard market, currently, Thuong Dinh operates a nationwide distribution network that starts with Hanoi capital – North, Da Nang city – Central area and Ho Chi Minh city down South with branches at 40 provinces.

Annually, the company sells between 3.5-4 million pairs of footwear in domestic market.

Besides, company's products have met good response for member countries of the European Union. Company's development strategy is to expand its distribution network to other oversea markets, such as Japan, South Korea and others in South America and South Africa etc.

As a measure, Thuong Dinh company has embarked on plans to accelerating implementation of modern science and technology, maintain ISO 9000 and ISO 14000 certification as well as attempt and achieve perfection in production and management.

The company's considers higher investment in production and business as indispensable factor for development.

At present, the company is constructing a plant located at Ha Nam province (at a total investment capital worth VND 30 billion – $ 1.88 million), which will manufacture about 800,000 sports and leather shoes per year after initially having a plant capacity for only 500,000 pairs per month.

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