Tan Dai Hung Plastic Joint Stock Company

Tan Dai Hung manufactures Poly-Propylene (PP) woven bags which are typically used to hold commodities such as fertilizers, rice, sugar, animal feeds, chemicals and other agricultural products. These bags are available in more than 90 colors with optional UV protection features. Other products include shopping bags, landscape fabrics, Jumbo bags, Container bags, Raschel bags, Leno bags, PP laminated Poly-Ethylene (PE) bags, High Density Poly-Ethylene (HDPE) and Low Density Poly-Ethylene (LDPE) bags.

Tan Dai Hung has a strong and committed management team that has realized a net profit growth of more than 20% per year on average over the last three years. The Company has paid out attractive dividends which have been growing at the same rate as net income, even in the midst of ongoing expansion projects. Meanwhile, with Vietnam’s expected near-future entrance into the WTO, and an increasing number of buyers of PP bags in the US and EU shifting some of their sourcing from China to Vietnam, demand for Tan Dai Hung’s products are expected to continue to sustain growth rates above 20%.

Revenues in 2006 were $13.8 million, an increase of 25% compared to 2005. The company has over 1,100 employees.

In 2006, Tan Dai Hung completed an expansion plan that involves relocation to a much larger factory in Long An province, around 30km from Ho Chi Minh City. The production capacity of the new factory is 60% higher than the old one. In 2007, Tan Dai Hung reached its full capacity again in March 2007 with the entry of the US market. The company is under the process of building some more workstations to further increase its capacity to serve the fast growing market in the US.

Since November 2007, Tan Dai Hung has successfully been listed in HoSTC. In addition to the expansion in its traditional business in PP bag manufacturing to meet the fast growing market demand, Tan Dai Hung is entering into new businesses such as plastic material trading and property investment.

The Mekong Enterprise Fund made an investment in Tan Dai Hung in March 2003. Tan Dai Hung's revenues have grown by 165% over the period that Mekong Enterprise Fund has been an investor.

Production process

The process of manufacturing PP woven bags involves mixing raw materials starting with PP pellets and other additives, extruding the raw materials into a yarn, weaving the yarn into a fabric in a process similar to the weaving of textiles, laminating the fabric, cutting the fabric into appropriate sizes for the bags, sewing the bags, printing onto the bags and finally packaging the bags. The production process is designed with a flexible work flow to customize production according to the requirements of each customer.

Markets

Approximately 70% of the company’s products are exported to the US and European countries including Italy, France, Switzerland, Belgium and the Czech Republic.

Quality control

Tan Dai Hung has received ISO9001:2000 certification from Det Norske Veritas (DNV) and Quacert. Furthermore, the company is very committed to high quality standards and continuous quality improvement.
Tan Dai Hung has a Process Improvement Department whose main responsibility is to implement continuous improvements to the production process so as to constantly improve quality, on-time-delivery and customer satisfaction. The company has also invested in advanced testing equipment, including UV testing equipment.

History

The predecessor company of Tan Dai Hung was initially established in 1984 to manufacture recycled bags. Between 1984 and 1994 the company relocated 5 times as it gradually expanded. In 1994, Tan Dai Hung began manufacturing PP bags for rice and fertilizer, which was around the same time that Vietnam started to become a major exporter of rice.

The PP woven bag business was increasingly successful and by 1996, the company halted its production of recycled bags in order to focus entirely on PP woven bags. In 1997, the company began exporting for the first time. In 2000, the company underwent a major expansion which resulted in significant growth. The company now operates at nearly full capacity, with 20 hours per day of operations, and is undertaking another expansion to satisfy the continuously growing demand.

The company has also been recognized as one of the Top Ten Plastic Companies in Vietnam by the HCMC Plastic Association (HPA) continuously since 1998 and as one of the Top 60 Plastic Companies by the ASEAN Plastic Association since 2000.

More information on Tan Dai Hung is available on their website at www.tandaihungplastic.com.