Hung Yen Garment Corporation – JSC (HUGACO), which began as a small state-owned local enterprise, after six decades, has firmly established itself as one of Vietnam’s leading textile and garment enterprises. HUGACO stands as a successful example of Vietnam’s economic reform process over the past 40 years, not only creating a highly efficient joint-stock enterprise for employees, shareholders, and the State, but also serving as the nucleus for the development of an ecosystem of more than 10 garment enterprises in Hung Yen Province, employing around 15,000 workers with stable incomes averaging around 1.5 times the local per-capita GRDP. All of these achievements stem from the spirit of continuous learning, self-reliance, and self-made determination maintained by generations of HUGACO employees.
A Golden Legacy Shaped by a Culture of Innovation, Creativity, and Unity
Sixty years have marked a journey of relentless effort, creativity, and resilience demonstrated by a united collective that overcame every challenge. Today, Hung Yen Garment Corporation – JSC can proudly stand as a strong and sustainably developing enterprise, committed to its employees and making significant contributions to the development of both the local community and the VINATEX. Throughout this 60-year journey, every stage of construction and development has left behind golden milestones shaped by the spirit of innovation, creativity, and solidarity of generations of Hung Yen Garment employees. Among them:
The period 1966 – 1986
HUGACO was established on May 19, 1966 under its original name – Hung Yen Export Garment Enterprise, during the war against the United States. The company was founded to carry out the Party and State’s policy of decentralizing production, developing the economy, expanding exports, and supporting the front lines.
During the 1966–1975 period, the enterprise had to organize production under extremely difficult evacuation conditions. Workers had to work from day to night not only to manufacture export goods but also to produce military uniforms for the battlefield, demonstrating a strong spirit of dedication and commitment during wartime.
After 1976, the company relocated to Hung Yen Town to build a new production facility, but continued to face numerous challenges stemming from outdated equipment, the subsidy mechanism, the aftermath of war, and economic embargoes. Despite the difficult living conditions faced by workers, wages were insufficient to cover basic living needs, the company maintained production and participated in garment processing contracts for the Soviet Union under the “19th of May Agreement” in order to improve employees’ livelihoods.
In addition to consistently exceeding production targets, HUGACO also placed strong emphasis on employee welfare by establishing a kindergarten for workers’ children and investing in vocational training to build a foundation for long-term development.
The period 1986 – 2005
After the 6th National Party Congress, despite being heavily affected by the collapse of the Eastern European and former Soviet markets, HUGACO proactively shifted its development strategy by sending workers for training at Huu Nghi Garment in Ho Chi Minh City in order to expand export markets to capitalist countries. At the same time, the company established an additional production facility in My Hao, Hung Yen, creating more favorable conditions for accessing customers and expanding into Western European and Japanese markets.
As a result of strategic direction and the ability to seize opportunities arising from the Vietnam–U.S. Trade Agreement in 2001 and Vietnam’s accession to the WTO in 2007, HUGACO successfully overcame difficulties, strengthened its production capacity, and established five new factories during 20 years.
For the period from 1995 to 2005, the company’s industrial output value increased by 2.5 times, creating jobs for nearly 4,000 workers while steadily improving employee income. This period is regarded as a phase of strong growth for the enterprise under the leadership of Ms. Luong Thi Huu, Secretary of the Party Committee and General Director of HUGACO from 1987 to 2004.
The period 2005 – 2025
Following its equitization process, HUGACO achieved significant advances in business efficiency and competitive capability. The enterprise demonstrated strong adaptability to market conditions while maintaining a sustainable development strategy amid the volatility of the textile and garment industry.
The company’s labor productivity increased more than fourfold, industrial production value rose sevenfold, employee income increased seven times, and market capitalization exceeded VND 650 billion. By 2025, each hectare of land used locally contributed more than VND 200 billion through wages, social insurance and health insurance contributions, and corporate income tax payments.
HUGACO consistently ranks among the top three highest-paying units within VINATEX and among the top five enterprises in the industry with the highest return on charter capital, at around 50%. Although not a pioneer in adopting new business models, the company is highly regarded for its consistency, efficiency, and sustainable development.
Together with its affiliated enterprises, HUGACO has created approximately 7,000 additional jobs, bringing the total workforce across the system to around 15,000 employees.
Especially, the period 2020 – 2025
Despite being affected by the Covid-19 pandemic, the global economic crisis, geopolitical conflicts, and trade tensions, HUGACO has continued to maintain stable production, preserve its workforce, and sustain steady growth. These achievements demonstrate the company’s flexible adaptability and resilience amid a highly volatile environment.
This phase of development is closely associated with the leadership of Mr. Nguyen Xuan Duong — Secretary of the Party Committee, Chairman and General Director of the HUGACO. The company’s achievements have been recognized by the Party and the State through numerous prestigious honors, including the Second-Class Independence Order (2011), multiple Labor Orders, Government Emulation Flags, and the title of “Enterprise for Employees” at both national and industry levels for ten consecutive years.
In addition to its business accomplishments, HUGACO has also earned strong employee loyalty and long-term partnership support from both domestic and international partners.
Reaching Further Through Knowledge, Technology, and High-Quality Human Resources
HUGACO affirms that its success has been built upon the guidance of the Party and the Government, the support of Hung Yen Province and various Ministries and Agencies, especially VINATEX — its major shareholder and long-term partner over the past three decades, together with the trust of customers, partners, investors, and the contributions of generations of employees.
Entering a new phase of development, HUGACO continues to pursue its strategy of becoming “an excellent and reliable manufacturer providing solutions for the green garment and fashion industry,” with a vision toward 2045 of becoming a garment enterprise with high added value and strong competitiveness within the global textile and apparel value chain.
The enterprise has set targets through 2030 of achieving average labor productivity growth of more than 10% per year, increasing wages by over 10% annually, and reaching an average income of VND 18 million per employee per month by 2029. At the same time, Hung Yen Garment Corporation – JSC will continue building a modern, safe, and equitable working environment while promoting transparent governance and digital transformation throughout the entire value chain.
To realize these goals, the company plans to invest in advanced technologies, implement comprehensive digital transformation, develop green products, enhance the quality of its workforce, and expand markets for high value-added products. Guided by the spirit of “Preserving Pride – Reaching New Horizons”, HUGACO aims to continue its sustainable development journey and contribute to the growth of Hung Yen Province as well as Vietnam’s textile and garment industry.
By: Dr. Le Tien Truong, Secretary of the Party Committee, Chairman of the BoD of VINATEX and HUGACO
