Duc Thanh Wood Processing Joint Stock Company

Duc Thanh Wood Processing Joint Stock Company (“Duc Thanh”) is the leading professional manufacturer of kitchenware and household utensils made of rubber-wood and acacia-wood in Vietnam. Duc Thanh differentiates itself by a very high level of operational excellence and control over the manufacturing process, resulting in high quality and consistent on-time delivery.

Duc Thanh currently has around 1,000 employees. Revenues in 2007 was $ 8.1 million, an increase of approximately 31% compared to 2006.

Mekong Enterprise Fund initially made an investment in Duc Thanh in February 2005, and Mekong Enterprise Fund made of follow-on investment in April 2006

Products

Duc Thanh produces kitchenware and a wide range of small household items made of rubber-wood and acacia wood. These include products such as cutting boards, bread bin, cutlery holders, wooden spoons, spice holders, serving trays, coasters, CD racks, stationary holders, newspaper racks, wine racks, kitchen trolleys, and many other kitchenware and household items. The company also produces indoor wooden furniture. In 2006, the Company introduced “Win-Win Toys”, a new product line of wooden educational toys for children.

Markets

Approximately 90% of the company’s products are exported to more than 40 countries in all 5 continents, with Japan and the European Union as the main markets. The remaining 10% is sold in Vietnam, mainly through supermarkets in Ho Chi Minh City, Ha Noi, Da Nang and other major cities.

Commitment to Operational Excellence

Duc Thanh is very committed to operational excellence and maintains strong control over the manufacturing process. Consequently, Duc Thanh has a strong track record of producing high-quality products and delivering on time to exceed customer’s expectations. To continuously keep up with increasing global competition, Duc Thanh has applied a modern production method involving Lean Manufacturing tools – for example the use of flexible manufacturing cells at its factories beginning in 2005.

The Company has also consistently demonstrated a strong capability in implementing and executing its expansion plans and improvement projects. For example, Duc Thanh’s factory expansions in 2003 and in 2005 were both completed ahead of its schedule.

In addition to their well-developed production processes, Duc Thanh has been able to nurture and maintain a culture of continuous improvement on the factory floor, where improvement ideas from all employees are highly recognized and rewarded.

History

Duc Thanh was founded as a family workshop in 1991 by Mr. Le Ba, who is currently the company’s Chairman. In 1993, the company was converted into a limited liability company and in the same year, Ms. Le Hai Lieu, the daughter of Mr. Le Ba, was appointed General Director. The company was converted to joint stock shortly after the Enterprise Law came into effect in 2000. In December 2001, the company received ISO9001:2000. In 2003, the company opened a second factory in Go Vap District of Ho Chi Minh City to keep up with the strong growth in demand for its products. In 2005, the Company reallocated its first factory to a new factory in Binh Duong. The Binh Duong factory, which was put into operation since August 2005, has a potential capacity of approximately four times the first factory.  The Company is in the process of preparation for their next expansion plan, which will initiate in early 2007.

For more information on Duc Thanh, please visit their website at www.DTwoodVN.com.