Southern firms unveil ambitious 2014 expansion plans Photo: VNA Although not being out of the woods yet in terms of economic hardships, numerous businesses in Ho Chi Minh City have presented ambitious expansion plans, according to the Vietnam Investment Review. Director of Minh Tien Company Limited Nguyen Tri Kien said they plan to double production space to meet burgeoning customer demands. Minh Tien produces bags and suitcases under the Miti brand and operates five production lines currently and boasts a workforce of 500 skilled workers and employees as well as an expansive distribution system with 200 agents and 50 outlets throughout Vietnam. Kien said Chinese-made suitcases hold a 90 percent market share in the north and 60-70 percent in the south but often have problems with wheels, handles or zippers. “Our company does not have these problems and we offer customers a five-year guarantee on our suitcases,” said Kien. As well as doubling their production area and procuring state-of-the-art equipment, the company has a production goal of 500,000 units, up 80 percent against 2013. According to CEO of Thien Nam Elevator Joint Stock Company Tran Tho Huy, the company managed stable production last year with 328 billion VND (15.6 million USD) in revenue, on par with the yearly projection. More importantly, it developed a strategy to more effectively tap the Japanese market. “In early February our company shipped off the year’s first batch of elevators to Japan, valued at 230,000 USD. This promises a more positive business performance compared to 2013,” said Huy. Thien Nam’s new factory kicked off construction in October 2013 in southern Long An province and is expected to open (first phase) in April this year. The company, which was honoured as a national brand and named a leading elevator supplier in the country, has set out to surpass 10 percent growth this year. Deputy Chairman of the Ho Chi Minh City Business Association Pham Ngoc Hung said difficulties in 2013 resulted in many firms going bankrupt, leaving the market open to other players. Healthy firms have the opportunity to fill this void in 2014. One example is Nam Thai Son Plastic Packaging Joint Stock Company in Ho Chi Minh City’s District 2, which succeeded in seizing 70 percent market share for biodegradable plastic bags after scores of companies surrendered once environmental fees were imposed on plastic bags. All of these firms responded similarly that fairly stable exchange and lending rates played a major role in their decisions to expand.-VNA