Million dollar factory of worker

As a worker who lost his job when the factory laid off workers, Mr. Nguyen Van Tri built Lap Phuc Company specializing in accurate molds to export and earn 4 million USD per year.

On the days near Tet, the factory more than 10,000 m2 of Lap Phuc Co., Ltd. (District 7) is busy with the final stages for car mold orders exported to the US. The male worker Vo Nhut Han stared at the control screen, his face was satisfied when the machine operated smoothly.

Mr. Han (blue shirt) operates on the machine. Photo: Le Tuyet

After graduating fromengineering technology intermediate school, The boy of Tien Giang joined Lap Phuc Company. After 15 years, he is one of the skilled workers at the factory, ensuring the monthly income of about 20 million. Thanks to the stable salary and economy, he and his wife was able to buy land and built a house in the city. “Maybe I will work in Lap Phuc until I retire”, said the 38-year-old male worker.

Standing operating the machine with Mr. Han, Mr. Nguyen Van Tri, General Director, also the oldest worker of the factory. “One working day, I only had an hour of manager, the rest at the workshop, working as a worker with my ‘brothers’”, the man over 60 years old said. He likened himself to “a basis” as a worker, so even though he is the boss, he still had to stick to the machines.

Mr. Tri is the eldest son in the family of 10 brothers. On the day of the country, he had just finished his vocational intermediate school. In order to have money to support his parents, he applied to work as a worker at the Southern Agricultural Machine Company in Bien Hoa (Dong Nai), nearly 40 km from his house. While many people were afraid of the distance, he persisted in pursuing. In order not to be bored, during three hours on the bus commutting to work, he read books related to mechanics to acquire more knowledge.

Thanks to hard work, eagerness to learn, after a few years of working, Mr. Tri was appointed to management position with the highest position as the factory manager. In 1994, the company reduced the payroll, he lost his job at the age of 35 after 18 years of commitment. Knowing many occupations related to the mechanical, but he decided to start a business with the mold industry with the thought that any items would need molds. Good mold would ensure product’s beauty and quality.

At that time, the mold was dominated by the Chinese. In order not to be “crushed to death”, he chose a separate branch, not focusing on household appliances but making a watch and fan mold. In order to have the best product, he borrowed $ 120,000 from relatives to buy a CNC milling machine, one of the modern machines imported to Vietnam 25 years ago.

In 2002, Mr. Tri’s facillity officially went up to company. However, the turning point in the development journey of Lap Phuc must be mentioned in 2005. The company borrowed 6 billion VND from the city’s stimulus capital to buy machinery from Switzerland. Innovation technology, the company’s customers are also more advanced, out of low-end models.

Mr. Tri checks a machine at the factory. Photo: Le Tuyet

From the first large customer is Colgate, Lap Phuc expanded to domestic FDI enterprises inherent from Europe and America. 8 years ago, with a stimulating loan of 40 billion dong, he invested more machinery, built a standard factory to jump into the car molds and exported to the United States. After nearly 30 years, small mechanical workshops have now become a company with an export revenue of 4 million USD per year.

However, the way to bring Mr. Tri’s product internationally is not flat. Lap Phuc was fierce competition with Chinese businesses, which were the eldest brother in this industry. “When I first started, Chinese factories have built a firm foothold, so it is very difficult to squeeze in,” Mr. Tri said.

According to him, when two products has the same qua;ity, the same price, customers will choose Chinese suppliers because of their priority. To compete, Mr. Tri determined that the price must be cheaper and the quality must be better, according to the standards of Japanese businesses.

Taking advantage of being a skilled mechanic, he bought Japanese old machines and then repaired and improved to run the first stages of the product. In the stage of finishing, the product is made entirely on new machines to achieve the most accurate and beautiful pattern. When the cost of machinery decreases, the cost will decrease.

In recent years, when the United States has high taxes on goods from China, Lap Phuc has benefited when the tax is only 1/4 compared to the Chinese factory molds. As a result, the company’s orders are always abundant, even when the whole world enters the common recession.

Not only overcome the fierce competition of orders, Mr. Tri also had to find ways to keep labors. Currently, Lap Phuc has 180 workers, income 10-40 million VND/ person per month, depending on the position of new workers or skilled workers, engineers. In order to keep people, first, the company must ensure income for labors.

“How good I am but if the salary is not enough to live, they will leave,” Mr. Tri said. Next, it is necessary to build a proper factory, raise the company’s position for employees to believe in the sustainable development of the business.

Automatic area without workers in Lap Phuc. Photo: Le Tuyet

According to Mr. Tri, many people in this industry always want to hide their jobs or divide the stage clearly, workers cannot know how the factory operates to produce a product. However, in Lap Phuc, if a worker wants to apprentice, know all the stages, how to calculate the price of products … he will be supported and guided. Many people have improved their skills and experience to separate or find new opportunities elsewhere.

“I did not take that sadness, on the contrary, it was also happy because the molds industry in our country will grow stronger,” Tri said. For him, competitors are now Chinese, Japanese and Korean owners, not Vietnamese workers who are eager to learn. Over the years, Lap Phuc has become a practical workshop for many colleges and universities specializing in mechanics.

Chairman of Ho Chi Minh City The Association of Mechanical – Electrical Enterprises – Mr. Do Phuoc Tong said from a worker, Mr. Tri has risen to become a good business owner, the factory has many high-quality product lines. Lap Phuc is one of the few Vietnamese enterprises to strongly invest in technology and machinery to enter the big playground in G7 countries, especially the car mold industry.

According to Le Tuyet – Electronic Newspaper

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