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. They have recently completed the first phase of their expansion to Quang Nam province. As of the end of 2006, they have around 2,000 employees, divided into 39 production lines in Ho Chi Minh City and Quang Nam.

Revenues in 2006 are estimated to reach $13 million, an increase of 42% compared to their revenues in 2005. Minh Hoang is expecting to continue this rapid growth as a result of on-going expansion at its factory in Quang Nam.

Mekong Enterprise Fund made an 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 extremely 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 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 Nike garment suppliers in the world to implement Lean manufacturing which has further strengthen its position as a supplier to Nike.

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 contractor for Nike and on full package basis. Subsequently, Minh Hoang periodically increased its capacity and has emerged as one of Vietnam’s largest and most well respected private garment manufacturing companies.

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