Asia Dragon is the first Vietnamese enterprise to produce synthetic fibers for agriculture and maritime. The second unit is Smart Fiber Solutions Company Limited, a joint venture between Tapex (Australia) and the founder of Dragon Asia, Ms. Nguyen Thi Viet Hoa. Right direction, the right technology is the foundation for the Asian Dragon to cross the sea.

The Asia Dragon was born as a push of fate. After nearly seven years as a manager for a foreign-invested enterprise specializing in the production of export ropes, Ms. Hoa recognized a huge demand for synthetic fibers. Many distributors offered to support her business to invest in the production of this product line. Also right. Diversifying suppliers not only helps Dragon Asia's partners reduce risks, but also increases the right to negotiate with existing suppliers. The positive signals from the market are the basis for her to boldly propose to the Board of Directors to import more machines and expand production. However, her idea was not approved.

With work, Viet Hoa is assertive and upholds a sense of responsibility and honesty. This is the foundation for you to find reliable and sustainable partners. With friends, Hoa lives wholeheartedly - Hoang Thi Xuan Nga (General Director of An Thanh Co., Ltd.)

Leaving the company, she knocked on the door of some businesses in the plastic industry, asking for cooperation. People produce, she takes care of output. No door was opened. If no one does, I do. The situation made her recklessly set up a company in 2006. "That was the only time I took the risk", she affirmed. The accumulated money is not enough, she has to borrow more relatives with a red book for two houses to mortgage at the bank.

Turn your back on the cliff.

Export-oriented Asian Dragon. The first target is America. The 2007 Agricultural Census results show that the country has 2.2 million farmers with 3.73 million square kilometers of arable land, equivalent to 1.69 square kilometers per farmer. The larger the area, the higher the mechanization efficiency. Productivity determines competitiveness. During the harvest season, the rolls of synthetic fibers rolling for kilometers across the field run out of sight. Machines automatically tied up wheat and grass. The specificity of the product is the reason why Asia Dragon almost leaves the home field empty. The land limit policy has not yet allowed Vietnamese farmers to accumulate land and form large production areas. In recent three years, some Asian Dragon products began to appear in some hi-tech agricultural zones in Cu Chi (Ho Chi Minh City), Binh Duong. However, the size of the domestic market is negligible. Export is vital.

Agriculture is one of the economic sectors in which the US is a net exporter. Getting into the tight supply chain in this market means accepting fair competition with tough competitors worldwide. Failure, Hoa acknowledges that she has no chance to do it again. Being successful in the US, Asian Dragon's products are certainly guaranteed quality.

Identifying target customers is a prerequisite for technology selection. Seasoned management experience, but technology is no small challenge for this slim woman. Worldwide, synthetic fiber is still considered a manufacturing industry for men. Down to the factory, Viet Hoa looked like molting, ready to throw clogs and undress and adjust each water snake. Closely following the journey of Asia Dragon, Ms. Hoang Thi Xuan Nga, General Director of An Thanh Company, did not hide her admiration when referring to her close friend: “Until now, just listen to the phone, Viet Hoa has can you know if the line is running stably or not.”

“Viet Hoa is an entrepreneur with a social heart. You enthusiastically give up your property and give your effort to participate in many social activities. As an exporter, Hoa has no interest there. Do it because you want to be shared because you find legitimate joy "- Tran Hoang Bao (General Director of BCC Consulting and Human Resource Development Company)

In November 2006, samples by air passed to the US for field inspection. Feedback. Adjusted. Quirky. The loop lasts for a month. Solving the quality problem is also the time when the violence comes. Seemingly sensing the threat from the other side of the Pacific, European goods poured in and simultaneously reduced prices to the point where distributors were not sure to guarantee orders as agreed. Although the partner reassured her that she would "try to get (the goods) somewhat," Ms. Hoa still could not help "cold her back." Single-minded painting, the price of plastic particles increased dramatically.

In terms of inputs, Asia Dragon strives to minimize reasonable costs, especially focusing on inventory factors, ensuring that they arrive at the port. The raw materials arrive at the factory. Output, negotiate with transfer partners as soon as the goods get off the ship. “I also don't understand why people put their trust in me, even though I've never met in person. We only chat online twice; the rest is working via email,”- Ms. Hoa said, after admitting that working with foreign countries, it is best, to be honest.

Look at the competition. Despite the depreciation of machinery and equipment, European manufacturers are under pressure on environmental taxes, especially labor prices. In return, their cost is still 10% higher than the Asian Dragon. "We sell the cost of goods," Ms. Hoa said. After three months of holding, the price war ended.

The main rope bridge starts in December and ends in May of the following year. The machine operates 24/24. It is too risky to produce before there is an order. Where is the exit? Ms. Hoa smiled: "Several months after the Asian Dragon rope arrived in the US, some distributors told us about the demand for the rope." This is a product line that Ms. Hoa was extremely familiar with when she was still working for her old company.

As expected, the product's acceptance in the US becomes the passport for Asia Dragon to conquer new markets. Growth rates fluctuate in the range of 25-28% / year. By the end of 2014, the company achieved $ 12 million in revenue, of which the US market accounted for a significant proportion (65%), followed by Australia, Canada, Brazil, Mexico ...

50-50 joint venture

Seeking higher returns is the engine that drives capital flows away from national borders. After nearly six decades of manufacturing and trading yarn, Tapex decided to close the factory in Australia, offering to cooperate with Ms. Hoa.

Partner contributes 50% of the total investment capital of 9.8 million USD. A balanced capital contribution ratio eliminates a veto in case both parties cannot find a consensus. Ms. Hoa explained: “Trust and win-win goal (both sides win) is the initial basis for us to meet. Of course, the contract has explicit assignment terms. Tapex is in charge of export, and I'm in charge of production; I don't step on each other. In the immediate future, the partners will focus on Australia and New Zealand (sales in 2014 reached 8 million USD). Oceania is a market where Tapex has a long history. Tapex commits not to participate in the US, the main market of the Asian Dragon. At the end of last year, Asia Dragon put the Spalinger system imported from Austria, worth 1 million USD, increasing the design capacity to 500 tons/month. Hiep, the maintenance manager of Asia Dragon, said: “The partner does not hide his profession. Their engineers are always ready to share experiences ”.

In recent years, Vietnam has aggressively promoted bilateral and multilateral free trade agreements. One of the events that attracted media attention was the Trans-Pacific Strategic Economic Partnership (TPP). However, to enjoy the 0% tax rate, TPP members need to ensure the "principle of origin." Specifically, products exported from a member of the TPP to other members must have "intra-bloc" origin. Currently, Asian Dragon mainly imports virgin plastic resins from Saudi Arabia, Thailand, and South Korea. Changing suppliers is not too difficult because, in the TPP alliance, there are also members in the region, very strong in petrochemicals such as Singapore, Malaysia. Besides, the continuous drop in oil prices recently pulled the price of primary plastic resin products down. Reduced input materials are an opportunity to lower output prices and encourage purchasing power. In the latest development, the State Bank's decision to loosen the exchange rate band by 1% in the first week of the new year is good news for exporters. That means for every dollar exported, Asia Dragon's revenue increased by 100 dongs compared to 2014.

A brighter outlook is the EU-Vietnam bilateral trade agreement, which has gone through eight negotiation rounds. According to expert Pham Chi Lan, both sides' interests are clear and equal at many points, so Vietnam is "not so strenuous." If signed with the EU, the rope tax rate on 27 member countries will be 0 than the current 6.4%. Recently, the EU announced to end the subsidy investigation with the yarn industry. These advantages are expected to create momentum for Asian Dragon to gain a foothold in Europe. "Immediately, we aim to win market share," - she said.