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Production of mechanical components for Wood Industry

From trading supporting industries to the wood industry to investing in manufacturing products to close the supply process, Mr. Duong Hai Dang, Director of Duong Dang Phat Company Limited (Bien Hoa City) has gradually built up his reputation in the market.​​


In the coming years, Dang’s business will continue to expand production scale and invest in machinery and technology to step by step automate production.​

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Mr. Duong Hai Dang (right) inspects rivets for wood industry.​​

Going up from sales

Mr. Duong Hai Dang has a store specializing in trading ancillary products for wood industry such as hardwares, rivets, screws, hinges, etc. When the market has increasing demand for these products, Mr. Dang came up with the idea of investing in production lines instead of just doing normal business or wholesale trade. Deciding to invest, he bought premises, built factories, invested in machinery and raw materials for production to serve the market demand for over 5 years.

“If only doing business by selling is not enough, so my idea is to close the process of delivering products to customers, from manufacturing to selling. This both helps to reduce costs, while being able to immediately obtain the items that customers need, in addition it also creates advantages over other suppliers. When signing a commercial contract, my partner, after visiting the factory, sees that we can supply the products, they also feel more secure” - Director of Duong Dang Phat Company Limited said.

Since the manufacturing factory was in operation, besides commercial activities, the production prospects of enterprises have increased rapidly. Products of Duong Dang Phat Company are supplied to wood production and processing enterprises in Dong Nai, Binh Duong and neighboring areas, considered the capital of Vietnam’s wood production and processing industry. Particularly in 2020, due to the impact of Covid-19, businesses are facing such a difficult situation, but the wood processing industry still has impressive growth. That helps this company’s production activities also be more positive. Especially, from September up to now, orders for businesses have increased by more than 3 times compared to the previous months. The year-ending months and new-year months approaching the Lunar New Year are now the time to increase production shifts to meet customer needs. Although the price of raw materials has increased, but due to being prepared in advance and having a closed plan from production to distribution, Duong Dang Phat can be proactive in product prices and source of goods is a great advantage.

Towards digital business management

According to Mr. Dang, the Vietnamese supporting industry is facing fierce competition from foreign-invested enterprises. At the same time, one of the worries of the Vietnamese business community in general, especially small and medium enterprises, is that they are facing the risk of technology backwardness. In the current globalization era, countries with higher levels of development are tightening production, requiring strict technological and environmental criteria, so outdated technologies are often “exported” to countries with a lower level of development.

Vietnam, if careless, will risk importing old technology very large, because in fact, with most small and medium-sized enterprises, the amount of money to invest in advanced technology is difficult to afford. From there, a constraint on the development of domestic supporting industries will be formed. Therefore, the government must have solutions to calculate support measures to help the business community grow, be competitive with imported goods and have enough potentials to upgrade its equipment and machinery.

Currently, Duong Dang Phat Company Limited is gradually investing in machines that are increasingly standard and semi-automatic. There is not much human resources for production, mainly in the sales and market development department. The investment in machinery and technology also accounts for a large budget. Annually, Dang spends 30% of his profit to reinvest in machinery.

Phan Anh


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