VINACONEX1

Premium Vinaconex Tiles: GraduallyPenetrating Foreign Market

TheVietnamese construction market has made remarkable progresses in the pastyears. The development of this market is fuelled by the expansion of thebuilding material production industry. Many construction material productioncompanies have bravely invested in investing in machinery and equipment tomanufacture products of premium quality to occupy the market.

As a leading constructorin Vietnam and a leading investor in giant real estate projects, VINACONEX hasstudied and invested in the production of building materials. However, productsof common properties will be uncompetitive against traditional products oflower prices made by long-standing companies because they have been present onthe market for the long time and their machinery and technology have beendepreciated. Thus, think tanks of VINACONEX opted out the investment instate-of-the-art technology and machinery to manufacture favourite premiumbuilding materials in Vietnam and foreign markets.

From this direction,VINACONEX imported modern machinery from Breton SpA Company of Italia tomanufacture artificial granite stone tiles, Terastone and Brestonstone. Theproducts have a wide range of colours and sizes and have a stable quality. Tomanage and operate this modern production line, VINACONEX set up the VinaconexHigh-Grade Tile Production Joint Stock Company. The production line is equippedwith the latest machinery and technology from Breton SpA, enabling the companyto manufacture and supply premium tiles. VINACONEX is also the unique firm inSoutheast Asia to use machinery and technology of Breton SpA.

After three years,VINACONEX tile products with superior quality and diversity have been exportedto more than 30 countries in five continents, including Australia, the Us andthe EU. The export earnings are estimated to reach US$16 million in 2007 andUS$24 million a year from 2008. During the visit to the APEC Summit 2007 inAustralia with State President Nguyen Minh Triet, the company signed anagreement worth of US$60 million to export its tiles to WK Company of Australiain five years.

The sales of the companyand export earnings soared year after year in recent years. It recorded VND135billion revenue (US$8.43 million) and US$8.04 million export earnings in 2005,VND209 billion revenue and US$12.02 export revenue in 2006 and estimated VND265billion revenue and US$16 million export earnings in 2007.

VINACONEX alsocontributed its capital to the establishment of Stone Vietnam JSC tomanufacture stone interiors using stones manufactured by the corporation. Itagreed to invest US$44 million with WK Company of Australia to build its secondBretonstone stone production factory in Vietnam. At the same time, VINACONEXalso expanded its production capacity to increase the sales.

Under the developmentstrategy in the coming years, the company will maintain and expand its exportto foreign markets.

(Hau Giang - VietnamBusiness Forum)