Minh Hoang Garment Joint Stock Company

Minh Hoang is one of the largest private garment manufacturing companies in Vietnam both in terms of workforce and production capacity. As of the end of 2009, the company had close to 3,000 employees, divided over 54 production lines located in Ho Chi Minh City and Quang Nam (central Vietnam).

Revenues and net profit in 2009 reached $17.4 million, and $1.1 million, respectively (unaudited). Minh Hoang is expecting to surpass this result in 2010 by taking advantage of the strong garment sector outlook in Vietnam.

Mekong Enterprise Fund made its investment in Minh Hoang in April 2005.

Products

Minh Hoang manufactures woven and knitted sportswear for leading international athletic-wear companies, with Nike as its largest customer. Minh Hoang’s products are mainly shorts, jackets, sports pants and vests. The Company also manufactures T-Shirts, Polo-Shirts, children’s jackets, and ladies wear (e.g. jackets and skirts).

Most of Minh Hoang’s production is on a “full package arrangement”, also called “Free on Board (FOB)” in the garment industry. FOB means that the manufacturer owns the product which it sells to the customer and includes everything from the sourcing of the raw materials to the packaging of the finished product.

Commitment to operational excellence

Minh Hoang has a track record of continuous improvement in order to continuously improve its ability to meet customer requirements. For example, Minh Hoang has implemented an advanced inventory management and production management software application called G-Pro which allows Minh Hoang to track and monitor production in real-time, with data generated at the level of each sewing machine operator. This allows the company to minimize bottlenecks as well as identify and solve the causes of production problems. Minh Hoang has also implemented comprehensive quality management systems which have resulted in low defect rates. For example, the company performs rigorous inspections of its production processes, starting from raw materials through packaging of finished products. Minh Hoang also regularly conducts internal quality audits similar to those conducted by its customers.

Shortly after MEF invested in Minh Hoang, the company initiated its lean manufacturing program with the objectives of reducing lead time and eliminating waste. Minh Hoang is one of the first garment suppliers in Vietnam to have applied lean manufacturing.

Labor compliance

Minh Hoang is highly committed to meeting and exceeding its customers’ labor compliance requirements. Minh Hoang maintains comprehensive records on issues relating to labor compliance, such as work hours per employee, and tends to be evaluated well when labor compliance audits are conducted by customers. The company has dedicated significant resources into monitoring and maintaining a good working condition at the factories and regularly reviews feedback from customers in order to enhance the working environment.

History

In 1992, Mr. Nguyen Vinh Son established Minh Hoang as a small garment manufacturing company with 2 sewing lines, 100 sewing machines, 128 employees and chartered capital of $19,740. In 1993, the Company became a sub-contractor for Adidas on a Cut-Make-Trim (“CMT”) basis. Minh Hoang gradually grew and in 1999, Minh Hoang became a full service contractor for Nike. Subsequently, Minh Hoang periodically increased its capacity and has emerged as one of Vietnam’s largest, most modern, and most well respected private garment manufacturing companies.

For more information, please visit their website at www.mhg.com.vn.