As a national defence and security enterprise under the General Department of Defence Industry, Z189 Factory (one member limited liability Company 189) is tasked with building and repairing waterway vehicles serving national defence and security missions and participating in economic production.

In recent years, besides favorable conditions, the Factory has faced a lot of difficulties and challenges such as the recession in domestic and world shipbuilding industry; fluctuations in foreign exchange rates and prices of raw materials affecting the production, unplanned medium and long-term defense production tasks, limited State budget for military shipbuilding leading to a negligible proportion of national defence, etc. Being fully aware of the facts, the Factory’s Party Committee have sought appropriate solutions including innovation, investment in technology, market expansion and promotion of production and business efficiency to meet development requirements. Thus, the Factory has not only overcome difficulties but also developed comprehensively, maintaining a high growth rate for a long time compared to the average level of domestic shipbuilding establishments. It has become one of Vietnam's leading shipbuilding units, gaining domestic and foreign prestige. The Factory has been truly a "spotlight" in the military shipbuilding industry, ensuring stable jobs and incomes for employees. Simultaneously, it has well performed the task of combining national defence with economy and vice versa. The Factory has won Vietnam Gold Star Award, VIFOTES Award, Gold Cup, Gold Medal at domestic and international exhibitions, etc. for its products. Its Party Committee and the whole Factory have been comprehensively clean and strong for many years. For the achievements in 30 years of construction, development and growth, the Factory has been awarded the title of Labor Hero in renewal process, Second-class Labor Medal and many other noble rewards.

Sr. Col. Vu Dinh Ninh presents awards to typical individuals in the Determined to Win Emulation Movement for the 2012-2017 period

One of the reasons for above-mentioned achievements is the Factory’s increased focus on all-level Party Committee and commanders’ leadership and direction over production and business, which is the decisive factor for its right development in the market mechanism. Accordingly, it has concentrated on improving leadership and fighting capacity of the Party committees and organizations in accordance with the type of business and put all production and business activities under the absolute leadership of the Party Committee, the Board of Directors and other commanding levels. At the same time, political and ideological education is promoted for full awareness and consensus on its policy to rearrange and transform the operation model. Thoroughly grasping superior directives and resolutions, particularly the Resolutions 520-NQ/QUTW and 425NQ/QUTW of the Central Military Commission on "the leadership over production and economic development combined with national defence by 2020" and "Arranging, innovating and improving operational efficiency of Military enterprises by 2020 and subsequent years". The Factory’s Party Committee and Board of Directors have formulated a lot of guidelines and measures to direct the consolidation of organizational structure and transition in management mechanism; build production and business strategies; implement investment projects to improve production capacity; conduct researches on market development; promote brand-names, etc. Being aware that defense production is a central political task, economic production is of paramount importance and promoting the tradition of “enriching and winning” (the precursor of Z189 belonged to Military Zone 3), the Factory prioritizes resources to fulfil defense production tasks. At the same time, it makes the most out of tremendous power, technology and equipment level to boost economic production, giving priority to improving product quality, thoroughly saving, reducing costs, increasing production of specific products, taking advantage of aluminum shipbuilding technology. These have created a competitive advantage in the market (so far, there are no facilities that can compete with the Factory for aluminum shipbuilding technology). The production and business activities of the Factory comply with the State law and the Ministry of Defense regulations. Besides, the quality and efficiency in the implementation of national defense and economic tasks have dramatically improved¹.

The most valuable asset of enterprises is human resources, especially in the trend of integration and the knowledge economy. The quality of human resources determines the existence and development of enterprises. Therefore, the Party Committee of the Factory has implemented synchronous solutions for building high quality personnel to meet the task requirements. To maximize effectiveness, it reorganizes the workforce in accordance with the operation; build regulations on training, retraining and development of technical staff with specific policies to encourage self-study with the aim of improving their professional qualifications and skills. In addition, the Party Committee and the Board of Directors also focus on recruitment, attracting high-quality human resources, especially students across the country. Furthermore, it regularly organizes classes on improving skills, such as: fostering short-term knowledge, inviting experts on management and technical training for staff, engineers and workers. At the same time, it holds numerous competitions associated with emulation movement "Skill practice - Excellent workers" in all branches. Up to now, most of the Factory's officials, engineers and workers have received basic training in prestigious schools inside and outside the Army; some are trained and fostered abroad; in which, there is 1 doctor, 25 masters, 198 engineers and bachelors of majors, over 150 college-level and high-level workers accounting for over 30%. Human resources of the Factory are evaluated as the most qualified and professional ones in the General Department of Defense Industry, meeting the requirements of sustainable development of the Factory.

The Truong Sa ship built by the Factory

In order to improve competitiveness and product quality, the Factory has increased investment, technological innovation, equipment modernization and encouraged technical initiatives. Bringing into full play the creativity of commanders at all levels, the Factory actively mobilizes resources, invests in building infrastructure, equipment, synchronous and modern production lines such as: US Rollroyce raised floor system with the lifting capacity of 3,000 tons; 270 meter-long wharf for ships with a tonnage of up to 10,000 tons; ship building technology with Shipcontructor software; high-precision machine manufacture, etc. Currently, the Factory is capable of building military ships of 2,500 tons, transport ones with a tonnage of 5,000 DWT; patrol boats with speed of 40 knots. Besides, the movement of promoting innovation and technical development is highly welcomed by officials and employees. Since 2013, the Factory has had a project at Ministerial-level, two at General Department-level, three at grass-roots and 251 initiatives as well as measures applied to manufacture, which yields VND 50 billion. The application of scientific researches into the management and production process has brought about practical results, contributing to the improvement in the technological aspect of defense and economic products. The thesis "Research and apply automation in the manufacture of the Medical Military vessel K123" for the Navy - won the first prize of VIFOTEC award; the thesis "Research, design, manufacture dredgers in the area of ​​the Factory lift floor" - won the first prize of the Army Creative Youth Award, etc. In order to meet the general development trend of enterprises when participating in the market economy, the Factory actively diversifies products, promotes marketing to expand markets and enhances the professionalism as well as efficiency in business management. In the process, the Factory concentrates on successfully fulfilling the task of researching, building modern military ships, with high complicated technical requirements and armed with modern weapons and military equipment. The Factory actively carries out researches, develops markets, cooperates closely and effectively with traditional partners and customers; boosts trade promotion activities, seeks and expands export markets. Focusing on developing, exploiting technology and products is its strength, especially aluminum technology and products of alloy aluminum. It also attaches importance to developing high-precision mechanical processing; high-class passenger ships and yachts, building strategic products with outstanding advantages. Simultaneously, the Factory promotes cooperation, builds and exports dozens of ships of high economic value to Europe, Australia, America, etc., in which there are modern specialized ships of international standard.

In the context of an open and highly competitive market, the Factory has applied modern management methods to improving its operational efficiency and reducing management costs, such as quality management system in compliance with TCVN ISO 9001:2008 standard (the Factory is the first army unit to receive certification of TCVN ISO 9001:2015); JH143 risk assessment standard of the International Joint Commission on Shipbuilding (the Factory is rated B in the A-E scale of the standard); specialized software system for material and financial management; as well as automatic fingerprint attendance system, etc. Besides, the Factory keeps improving material and spiritual life of officials, employees and workers, building up their trust in the Factory.

In high spirit of initiative, creativity, and willingness, Z189 Factory, in the coming time,  continues to put in more effort, enhances sustainable development, affirms the brand-name, contributing to the cause of constructing and improving the Defense Industry as well as of building and protecting the Motherland, which preserves the Heroic Factory’s tradition of “Solidarity to overcome difficulties, dynamism and creativity”.

Senior Colonel Vu Dinh Ninh, Secretary of the Party Committee, Political Commissar of the Factory

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1 - Income and life of workers have greatly improved; the average annual growth rate reaches 7%; between 2013 and 2017, revenues increased by 1.4 times, budget payment increased by 1.3 times; Profit increased by 1.3 times, average income rose by two-fold. In 2018, the total revenue was estimated to be over VND 1,095 billion, up 100.91% compared to 2017; VND 79 billion to the state budget; value increased by VND 170 billion; total profit before tax is VND 40 billion; the per capita income is VND 12.25 million  per month.