CHIẾN lược QUẢN TRỊ HOẠT ĐỘNG DỊCH vụ IN “BAO bì, vỏ hộp CAO cấp” của CÔNG TY VIETTEL VENTURE e

OPERATIONAL STRATEGY OF HIGH-END PACKAGING AND
CONTAINER PRINTING SERVICE AT VIETTEL VENTURE

I.

INTRODUCTION OF THE COMPANY

1. Company History:

Viettel’s company developing new services (Viettel Venture) belongs to Viettel
Group and was established on November 3 rd, 2009. Its main business activities are:
smart card manufacturing, modern retail, high-end printing, etc.
The company owns a 12,000 m2 printing factory in Nam Thang Long Industrial
Zone, Tu Liem, Hanoi with total investment of 700 billion VND. The plant is largely and
modernly infrastructured with new and synchronic machinery system imported from
Europe which was rated the most modern in Southeast Asia. After two years of operation,
Viettel printing plant which employs 70 employees has soon dominated the market. In
2011 its revenue increased 27% to 250 billion VND, which makes the company among
Top 5 packaging businesses in Vietnam.
The company provides printing services on all types of materials: Printing
packaging, containers, labels, scratch cards, publications, calendars-cards, etc.
2. Company Strategy of Printing Service

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With the foundation of modern and synchronic technology, Viettel Venture aims to
become the leading supplier in Vietnam in the fields of printing and producing packaging
in 2015. In 2012 the company applies business strategy “retain the background, expand

the market” to optimistically exploit its existing customers’ needs and promotes the search
for new customers and new products. Besides, the company is striving to be among Top 3
highest-sales printing company with sales growth above 20%.
II. MARKET

ANALYSIS

AND

SELECTION

OF

COMPETITIVE

STRATEGY
1. Overview and Trends of the Printing Industry
According to the Association of Printing, Vietnam is considered the most
attractive location for foreign investors in the field of printing production and
outworking. Currently, the present of international corporations such as Diageo,
Procter & Gamble, Kimberly Clark, Unilever, Colgate Palmolive, Carlsberg, etc. has
drag on the demand for packaging printing dramatically. Printing and packaging
industry of Vietnam has average growth rate of 15-20%/year. According to data from
the General Statistics Office in 2011, revenue of the sector of printing on paper was
more than 30,240 billion VND, reaching an average growth of 12%.
Market share from packaging, containers and labels tends to increase, accounting
for over 60%, while that from magazines, newspapers, and advertising levels off.
Securitized printing products have been produced domestically; then foreign
companies are looking for partners in Vietnam for reducing costs. The South of
Vietnam is still the printing center of our country with more than 60% market share;

the North follows with more than 34%; the Central accounts for only nearly 4%.
2. Identifying target customers
Viettel Printing Plant groups its customers by product lines which is suitable
with its capacity in current investment stage. Data from Association of Printing and
Publishing Department determining sales structure by target product lines is presented
as following.

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Table 1: Division of the target market by the product groups of customers
Area
I

Target market’s demand
(billion VND)

Containers

Cardboard
containers

Labels

Cards

Trong nước

5,800

3,588

1,326

396

490

Tỷ lệ

100%

60%

23%

6%

11%

(Source: Association of Printing, Publishing Department)

Container – Cardboard container are still the product line with the highest
proportion of customers in the target market (over 80%). The line has an average
growth rate of 11.2%.
Targets of Viettel printing plant’s advanced packaging and containter
printing service: To satisfy the most (at least 80%) the total demand of its customer
groups who collaborated with the plant in 2010 and 2011, including 6 main guests:

Kinh Do, Huu Nghi, Hai Ha, Cai Lan in the North, Alpha, VTC; To focus on
developing new customers and new product groups of glazing calendering containers
and metalized containers with a total estimated revenue of 30 billion VND.
Table 2: Target revenue of Viettel printing plant by products in 2012
Target market’s
Products

Exploitin

Exploited

g Target

rate

5,777

273

5%

demand (billion
VND)

I

Common Products

1

Common containers

3,191

101

3%

2

Cardboard containers

1,326

35

3%

3

Labels

380

21

6%

4

Cards

880

113

13%

II

Differentiated Products

513

30

6%

1

Calendering container

227

20

9%

2

Metalized container

286

10

3%

6,290

300

5%

Total

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3. Analysis of competitors
The plant’s main competitors are defined as printing units with the same modern
machinery system with sales in 2011 reaching over 200 billion VND.
Table 3: Ranking of printing businesses by sales

Province

Business name

Liksin packaging

Sales in

Sales in

Estimated

2010

2011

Growt

sales in 2012

(billion

(billion

h rate

(billion VND)

VND)

VND)

300

330

10%

372

1

HCM City

2

Ha Noi

Golsun packaging

210

300

42.8%

339

3

Ha Noi

Viettel printing plant

206

262

27%

300

4

Ha Noi

Agriculture printing

172

230

33%

260

5

Đong Nai

Starprint

195

227

16%

256

(container + label)

a. Duplex Container Category:
Among five top printing companies, Liksin Packaging Company leads the highclass packaging paper market thanks to its synchronous equipments and its capability
of meeting almost the demands of various products in the market. Some typical
customers of Liksin are Masan, Colagte, Rotoh, Calofic, Kinh Do, P&G, etc. Among
the above-mentioned five leading printing enterprises, Agricultural Printing and
Packaging JSC (APP) and Startprint Vietnam Co. Ltd (Startprint) are Liksin’s two
strong competitors. APP’s growth rate of 33% is high. This indicates its ability to fully
develop its workforce’s experience and focus on the differentiation of such high value
products as laminated boxes namely Calendering and Metalize which no enterprise in
the Northern Region can produce and supply. Startprint also obtained high growth rate
of 16% thanks to its modern printer system and synchronic post-print processing
machine system. Besides, Startprint specializes in the product line of high value –
Hologram laminated boxes.

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b. Cardboard container category:
Goldsun Packaging and Printing JSC (Goldsun) has attained the highest growth rate of
42% thanks to its modern printing system - Offset Rolan 900, its wave

generator and product quality checker system, etc that can meet nearly all the
customers’ requirements of big volume and high technique. Its customers
include electronic companies such as Samsung, LG and Panasonic and food
enteprises such as Heneiken Beer, Viet Ha Beer & Beverage JSC, Hanoi
Brewery Ltd, Coca, Pepsi, Asia Food, etc. Several rivals of Goldsun – VietHung
Printing Co. Ltd, APP, Startprint and Visingpack also own a synchronic
machinery system for producing the cardboard container line. However, their
capability of producing big volume of products and “exploiting” customers is
inferior to Goldsun.
Conclusion: In the high-class package and container market, enterprises, in order
to create competitive advantages, have developed unique product lines and invested in
modern synchronic machinery system including printers, wave generators and
checkers.
4. Selecting the core competitive capability and competitive priority
In 2011, on the purpose of producing cake’s high – class containers and labels, Viettel
Printing Factory (under Viettel Venture) comprehensively cooperated with a number of
such big customers as Kinh Do Food, Huu Nghi High Quality Confectionery JSC (Huu
Nghi Food), Orion Food Vina Co., Ltd, Hai Ha Co., Hai Ha Kotobuki, Anpha Ltd. Co.,
Nestle Vietnam Ltd., Cai Lan Oil & Fat Industries Co. Ltd, Tuong An Vegetable Oil
JSC, VTC Game, etc. Given the production practices and based on its strength of
infrastructure, technologies, resources, etc, Viettel defined the core competitive
elements as follow: “Highest Product Quality – Shortest Production Duration – Best
Packaging Service – Fairest Prices”. Customers’ satisfaction and credibility play the
role as the foundation for Viettel Venture’s sustainable development.

III. MAKING DECISION ON LONG -TERM OPERATION STRATEGY

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1. Production and technology line management
Owning a modern machinery line, Hanoi Printing Factory is scheduled to
continue to invest in such machines as glass rinser, glazing calendaring machine and
dumping paper system (namely Investment Phase 2, to be completed in Quarter II of
2012) so that it can meet strict requirements, make its products unique and create the
competitive advantage of price.
Print-out technology: Viettel Printing Factory has applied the synchronic automatic
machinery system produced by a European supplier. The system is operated and managed
by advanced specialized softwares of processing image and print-out technology. Thanks
to using the system, Viettel can meet every customer’s demand for product specifications
and film quality, minimize defects and errors, lower expenses and shorten the production
duration.
Offset Printing Technology: Applying Offset printer system imported from
Federal Republic of Germany, Viettel Printing Factory can produce products of
international standards namely Offset. In the factory, all the production stages
including print-out, engraving, trial printing, mass printing are standardized that
facilitates the coordination among stages and eliminates defects for the best and stable
printing quality. Besides, the factory has the printing system for dynamic data and
laser printing system of high speed. These systems consist of the most modern printers
that can process changeable data. The printers’ suppliers are IBM, USA and Hitachi,
Japan. The printing capacity is up to 6 billion pages/day of high quality.
Post-printing processing technology: adhering to strict and various requirements
of customers, post-printing processing service is supported by high technological
system including post-printing processing line of which label making, bending, cutting
and packaging machines mixing and folding envelopes automatically. These machines
are the most modern in the world and can process – print – mix and fold printed
products of dynamic and static data. The capacity of mixing envelopes is up to 50,000
envelopes /hour and the system is managed by advanced softwares.

2. Quality management

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The factory has taken the initiative in applying softwares in quality management
and using modern controlling machines in order to control even every small
production stage and minimize defects and errors. Moreover, the factory maintains
strict working disciplines, resolutely manage and supervise production activities and
strictly adhere to military traditions.
3. Capacity Management
At this time the printing market still has good growth rate, especially the highquality packaging and containers market. Based on the existing production lines, the
ability of Viettel printing plant in Hanoi to meet its customers’ time and large volume
requirements will sometimes be difficult. To ensure the capacity for targets of
developing new customers, diversifying traditional customers’ products especially
those in southern area, and increasing its competitiveness. The company will
accelerate the speed of production lines construction and installation in Ho Chi Minh
City. The new production lines have capacity of 1.2 times larger than that of the plant
in Hanoi (to be completed in quarter 4, 2012).
4. Locating production
Viettel printing plant in Hanoi is now located in Nam Thang Long Industrial
Zone, Tu Liem, Hanoi; Viettel printing plant in Ho Chi Minh City is 17.000 m2 in Tan
Phu Trung Industrial Zone – Cu Chi – Ho Chi Minh. Industrial parks often have good
infrastructure amd convenient transportation. This is an advantage for the company to
meet customers’ requirements of high-quality of services, at high volume, and in short
duration. As the Central region has the market share of just over 4%, the company will
not place its production there but trading offices only.
5. Layout of Manufacturing and Operating Space

The area of 12.000 m2 (Viettel printing plant in Hanoi) and 17.000 m 2 (Viettel
printing plant in Ho Chi Minh City) allows the company an effective layout of
production and operation. At each plant, there are two workshops (Flexo printing
workshops and Offset printing workshop), an area of operation, a modern Larorator
room, showroom introducing products, and warehouse.

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Green – Clean – Beauty working environment

IV. DECISION OF OPERATIONAL STRATEGIES
1. Output Forecasting
The company’s growth forecast in revenue from services of printing advanced
packaging, containers up to 2015 is 20-25%.
Year

2011

Revenue from services of printing 130

2012

2013

2014

2015

160

200

250

300

23%

25%

25%

20%

high quality packaging and containers
(billion VND)
Growth

20%

2. General Planning
Preparation of floor space and machinery capacities: The company must
complete all items in portfolio of the 2 nd phase of the Hanoi Printing Plant at the end of
quarter 2, 2012 then HCM City Printing Plant at the end of quarter 4 in order to run the
production at quarter 1, 2013.
Preparation of human resources: The staff demand for the expansion of the plant
in Hanoi must be fully met by quarter 1, 2012 to make sure the company has enough

manpower to operate the new machinery systems at the beginning of quarter 3, 2012.
For the personnel for its factory in Ho Chi Minh City: Quarter 3, 2012 to complete
recruitment, 4/2012 to offer training at the factory in Ha Noi, quarter 1, 2013 to master
lines, machinery, equipment, then start production .

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Preparation of finance: Including the construction cost of plant, machinery and
equipment (600 billion VND); costs of materials, labor, etc.
Preparation of production process appraisal in the new workshop: Production
processes on new machinery and equipments must be designed and handed over by the
Research and Quality Assurance Division.
Preparation of raw materials for production: Main raw materials for production
must be carefully prepared to timely meet production schedule.
3. Materials Demand Planning
Main materials for services of printing high quality packaging and containers are
paper and printing ink. Domestic suppliers are now satisfying only more than 50% the
demand for paper so the rest must be imported. In addition, paper prices fluctuate
constantly. In 2011 the price of paper increased by 13%. On the other hand, high-end
printing products also require special inks which domestic enterprises are not yet
capable of producing. Therefore, the plant has to work with both domestic and foreign
material suppliers.
4. Reserves Management
Services of printing high-quality packaging and containers are provided
according to orders only. The company’s customers are enterprises so products
generally transported to customers once completed. Inventory need, hence, is small.
About materials: The company must reserve an amount materials (paper and ink)

which is enough (always in excess of limits) to ensure its production schedule to meet
the needs of customers.
5. Production Control Plans
Based on the volume and delivery time of each order, the company will plan the
production and there should be flexible solutions such as increasing working shifts,
adjusting duties of workshops and factories, etc. to consistently meet the customers’
requirements of the progress and quality.

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6. Management of Supply Chain and Distribution System
Viettel Venture
Materials
suppliers

Customers
Printing Plant
Divisions: Sales,
Plans, Design, QC,
etc.

Workshops,
warehouse,
showrooms

Seft-transport

Outsource

7. Customer Services
Customer care is extremely important to businesses operating in the services
sector, especially in the printing industry where customers are large enterprises and
bring the company high revenue. Sales employees create plan for taking care of
customers on holidays, birthdays in order to create intimate relationships with them to
facilitate their purchase process.
8. Transport Chain Management
For customers whose locations are near the plant and do not require a quick
tempo, the company will be transport products by the company’s own vehicles with
accessories to arrange and handle the cargo. For customers whose locations are far
from the plant and require a high tempo, the company can outsource reputable and
reliable partners to move the product to them.
V. CONCLUSION

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From now till 2015, Vietnam printing market in general and high-end packaging
printing market and containers still have good growth, which creates more favorable
opportunities for business expansion. However, the competition is increasingly strong.
So to succeed, printing businesses need to have appropriate operating strategies. On
the basis of business strategy, analysis market assessments, identified target customers,
the core competitive advantages, companies must build suitable and flexible long-,
medium-, and short-term operating strategies as well as operation and supply chain
management decisions. In doing so, the company can increase the products’
competitiveness, occupy and claim the company’s prestigious in the market, then

create a fast and sustainable development for the company.

Viettel Printing Plant
REFERENCES
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