Vikyno: Success story

Photo shows Mr. Hoang Trung Hai, Minister of Industry (right), visiting Vikyno

Southern Agricultural Machinery Co., Ltd. (Vikyno) was founded in 1971. At that time, Vikyno was a join-venture between a Vietnamese private business and Japan’s Kubota Corporation and specialized in assembling diesel engines ranging from 5 to 12 horsepower and some types of water pumps. After the National Unity Day of April 30th, 1975, though there were the ups and downs within the past 30 years, Vikyno has experienced significant growth and become one of Vietnam’s leading manufacturers of agricultural machinery. Vikyno received the Labour Hero title in the renovation process conferred by President at the beginning of October. The award recognized significant contributions by Vikyno employees to the economic growth.

Creativeness and the search for new forms of production in order to increase productivity

After the National Unity Day of April 30th, 1975, Vikyno was state-owned company which faced many difficulties due to not import components or spare parts from Kubota Corporation while the company had to manufacture machine tools, including lathes. The production of Vikyno declined dramatically at that time because the production line was not designed for such products. Vikyno manufactured again its traditional products of diesel engines many years later. During the 1980s, the company has long suffered from backward and incompatible technology as well as lack of power, fuel and raw material supplies. It has taken Vikyno many years to overcome difficulties enabling the company to stabilize its production.

Facing the challenges brought by the nation’s transition to a market-oriented economy, Vikyno’ initiatives have spurred research to develop products that met market demands. Prior to 1996, there were only 6 new products launched. To date, Vikyno has created over 70 quality products serve customers in the agriculture. Especially, the company modified and greatly improved the design of tractor ploughs to offer the same model and quality as Kubota’s products. During the last decade, the company has also launched emulation movements among its employees in order to build awareness and promote initiatives to encourage employees to become fully engaged. As a result, the companys initiatives have also expanded its product offerings and market opportunities. Certain of the cost savings initiatives have generated more profits during the past years and going forward.

Remarkably, negotiation between Vikyno and Kubota Corporation has brought to a successful conclusion that Kubota’s technology transfer allows Vikyno to produce diesel engines with the application of the latest diesel engines technology from Kubota. The exclusive product is only offered or supplied in Japan and Vietnam by both companies. Thus, Vikyno earns the trust and confidence of its customers in both the domestic and foreign markets by offering top quality RV diesel engines ranging from 7 HP to 30 HP. The product is also exported to 15 countries worldwide. Besides, Vikyno has spent the time researching the design of the product further to modify it aiming to accommodate to Vietnamese standards and to use more locally produced parts and components in manufacturing.

Becoming the top manufacturer of engines in Vietnam

To gain a foothold in the market economy, Vikyno has focused on in-depth investment and technology renovation to raise product quality. During the past five years, the company has invested over 10 billion VND in technology renovation. In addition, Vikyno has organized training courses for managerial staffs, technicians and workers. The company has also developed an environmental management system in order to reduce its environmental impacts and increase its operating efficiency. Vikyno not only organized training courses at the company but also sent its technicians to Kubota Corporation in Japan for exchanging experiences and upgrading their knowledge in fields of economic management, production technology and market development. The company was awarded ISO 9001:2000 certificate and ISO 14001 certificate, environmental management system. Vikyno was a unique company under Vietnam Engine and Agricultural Machinery Corporation (VEAM) that received two above certificates.         

Vikyno has made continuous efforts to raise its production output, turnover and export value. The company has annually capacity of 16,000 to 20,000 engines of all types and 10,000 agricultural machineries and fishery rearing equipments. Vikyno earned profits of over 23 billion VND in 1995 and more 100 billion VND in 2004. There was a fourthfold increase in Vikyno’s turnover compared to 1995. Vikyno’s export turnover amounted to US$ 57,000 in 1995 and US$ 1,7 million in 2004. This figure was nearly 34 times higher than 1995. The company contributed 490 million VND to the State Budget in 1995 and 4,408 billion VND in 2004. In the past four years (2001-2004), Vikyno’s profit has reached over 8 billion VND per year. To date, Vikyno’s products are exported to France, Japan, Nigeria, Malaysia, Indonesia, Thailand, Srilanka and United Arab Emirates and other countries all over the world.  Nearly 500 employees of Vikyno have stable income. The average monthly income for one person currently reaches 2.2 million VND.

Today, Vikyno becomes one of the top manufacturers of agricultural machinery in Vietnam and its reputation wins the trust and confidence of consumers in many foreign countries.

Thanh Tra