Nguyen Thi LienVice General Director PPJ

1Decrease in growth

2Fragi le growth in US market and new President of the US doesn’t support TTP

3“Brexit” impact on European market

4The 4th Industrial Revolution (Industry 4.0).

Categories Vietnam Bangladesh Cambodia Myanmar

Labor force (personnel) 2.5 millions 4.5 millions 700.000 400.000

Basic wage/person (USD) 150-200 70-105 128-153 80-110

Working days/week 6 6 6 6

Working hours/day 48 48 48 48

Export turn-over in Textile and Garment Industry (USD)

27.5 billions 26 billions 5.75 billions 2.2 billions

Threats

Strengths

Weaknesses

Opportunities

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- Abundant young labor force, low labor cost.- Stable economy and politics, and society

security- The important manufacturers and exporters

to US, Europe and Japan- Long term relationship with world branded

import merchants

Strengths

Weaknesses

ü Exported garment products with low cost and value occupy vast majorityü Undeveloped design stage and low FOB and ODM

production rateü Huge dependence on imported materialsü Limitation in modern facilities and technology

investment and innovationü Lack of high qualified labor force and designers

Opportunities

- Garment production shifting from China to Vietnam- Rising demands in domestic market due to Vietnam’s

growing population and increasingly living standard- Increasing regional and integrations in scale- Increasing FDI into Vietnam- Increasing competitiveness ability due to FDI

enterprises with high levels of technology and modern facilities

Threats

ü Severe competit iveness from textile and garment production countries with low price such as Bangladesh, Pakistan and Myanmar.ü Multiple obstacles of technique, hygiene, safety,

environment and social responsibilities from vast marketsü High competitiveness from FDI enterprises

SWOTOpportunities

Strengths Weaknesses

Threats

- Abundant young labor force, low labor cost.- Stable economy and politics, and society

security- The important manufacturers and exporters

to US, Europe and Japan- Long term relationship with world branded

imported merchants

ü Exported garment products with low cost and value occupy vast majority

ü Undeveloped design stage and low FOB and ODM production rate

ü Huge dependence on imported materialsü Limitation in modern facility and technology

investment and innovationü Lack of high qualified labor force and designers

- Garment production shifting from China to Vietnam- Rising demands in domestic market due to

Vietnam’s growing population and increasingly high living standard

- Increasing regional and integrations scale- Increasing FDI into Vietnam- Increasing competitiveness ability due to FDI

enterprises with high levels of technology and modern facilities

ü Severe competitiveness from textile and garment production countries with low price such as Bangladesh, Pakistan and Myanmar.

ü Multiple obstacles of technique, hygiene, safety, environment and social responsibilities from vast markets

ü High competitiveness from FDI enterprises

Introduction

PHONG PHU INTERNATIONAL JSC (PPJ)

MISSION STATEMENTThe goal of PPJ is to maximize our customer's satisfaction by delivering innovative vertical textile solutions, seamlessly integrated business processes with an entrepreneurial spirit.

ABOUT PHONG PHU INTERNATIONAL JSC (PPJ)Headquartered in Ho Chi Minh City, the company is one of the leading textile producers, garment manufacturers and exporters in Vietnam. The company was established to promote the vertical manufacturing of our denim, woven and knit fabric production into high quality apparel such as jeans, work pants, casual pants, knit wears for distribution to international markets.

Introduction

Spinning Fabric

Garment Wash – Wrinkle Free

Global Customers PartnersRegional Operations

Knit

Denim

Woven

VIETNAM

P P J B u s i n e s s

Others

We offer a diverse range of apparel products for all genders and age groups

Denim

Wov

en

KnitDenim: Bottoms, Tops…

Woven: Casual Jackets, Bottom…

Knit: Pull Over, T-Shirt, Polo shirt…

18 M 22 M

25 M

2015 2016 2017

12 M 15 M

18 M

2015 2016 2017

10 M

15 M

25 M

2015 2016 2017

DENIM WOVEN KNIT CapacityUnit / Year

Product Ranges and Capaci t ies

Others: Outerwears, Suits…

2015 2016 2017

1 M 2 M

3 M

SUITS & JACKET

EU ASIA US

Brands We Produce :

Vert ical Apparel Solut ions

Research & Development

Technology Integration

Design

Sampling

Sourcing

Trim & Fabric ProcurementTextile Manufacturing

Garment Manufacturing

Wash and WF Processing

Logistics

ConsumerTrends Analysis

V e r t i c a l I n t e g r a t i o n

Spinning Cotton procurement Dyeing Weaving

FinishingCuttingEmbroidery & PrintingSewing Line

Delivery WF ProcessDry & Wet Process Finishing & Packing

Provide Customers with support

- Market Research and Intelligence.- Trend Analysis – WGSN.- Shopping in US, EU, Japan…

Collaborate with customers in the creative process and brand building

- Design teams work in synergy with customers to develop exclusive collections- Provide customized design and sample execution- Provide in-house printing, embroidery and embellishment techniques- Fabric and accessories sourcing

D e s i g n a n d D e v e l o p m e n t

Green chemical Robot PP SprayWater Blast

Ozone

Laundry Capabi l i t ies

- Hand sand, whiskers, grinding, tacking …- PP, pigment and chemical spray…- 3D effect - Garment coating- Wet: washing & garment dying- Drying- Wrinkle Free Post cured and Eflow dipping

Our wash team is always experimenting to add new innovative wash techniques to our capabilities based on market direction

Eflow

Laser

I n t e r n a l L a b

P h y s i c a l T e s t i n g

- Fabric weight- Tear Strength- Tensile Strength- Stretch & Recovery (S&R)

F a s t n e s s / P e r f o r m a n c e t e s t i n g

- pH- Color Fastness: crocking, water, perspiration, washing.- Appearance after care – Home laundry

Fabric Weight

Tear Strength Tensile Strength

Stretch & Recovery

Color Fastness (CF)

Home laundry

Compl iance and People

Compl iance

People

Capaci ty: Denim & Laundry Faci l i t ies

§PPJ - Thanh Chau Long An Laundry -3

§ Capacity 200.000-300.000 pcs / month

§PPJ – LTW HCMC Laundry -2

Capacity 300.000–500.000 pcs / Month

§ PPJ – R&D HCMC Laundry -1

Capacity 200.000-300.000 pcs / month

§ PPJ – Long An Ex Gmt Fty -2

38 lines – 600.000 pcs / month

§ PPJ – Phuyen Ex Gmt Fty II - 5

14 lines – 250.000 pcs / month

§ PPJ – NhaTrang Ex Gmt Fty -3

14 lines – 250.000 pcs / month

§PPJ – Da Nang B Laundry -7

Capacity 500.000 pcs / month

§PPJ - Da Nang A Laundry -6

Capacity 200.000 – 300.000 pcs / month

§ PPJ – Phu Yen Laundry -5

Capacity 200.000 pcs / month

§PPJ - HNC Binh Dinh Laundry -4

Capacity 200.000 – 300.000 pcs / month

§ PPJ – HCMC Ex Gmt Fty -1

16 lines – 300.000 pcs / month

§ PPJ – Danang A Ex Gmt Fty - 6

16 lines – 300.000 pcs / month

§ PPJ – Da Nang B Ex Gmt Fty -7

16 lines – 300.000 pcs / month

§ PPJ – Quang Tri Ex Gmt Fty -8

14 lines – 250.000 pcs / month

§ PPJ – Phuyen Ex Gmt Fty I -4

22 lines – 350.000 pcs / month

C a p a c i t y : W o v e n F a c i l i t i e s

§ PPJ – Danang Ex Gmt Fty 16 lines – 300.000 pcs / month

§ PPJ – QuangTri Ex Gmt Fty 14 lines – 250.000 pcs / month

§ PPJ – HCMC Ex Gmt Fty 12 lines – 180.000 pcs / month

§ VID Woven fabric Mill• Cotton spandex – 1,000,000 yd / Month• Cotton twill / plain – 1,000,000 yd / Month • TC, CVC, TR, PE – 800,000 yard / Month • Visco, Nylon, Acrylic, Linen – 700,000 yd /

Month Total capacity – 3,500,000 yd / month

• Phong Phu Denim 1 : Capacity 2 million meter / month.• TCE Denim: PPJ Supply Chain - Capacity : 1.5 million meter / month. • TL Denim : PPJ Supply Chain - Capacity : 1.5 million meter /

month.• Phong Phu Denim 2 ( Danang ) : 2 million meter / month in

2017

• VID Woven: PPJ internal Supply Chain – Capacity 3.5 million meter / month.

DENIM FABRIC

TWILL FABRIC

KNIT FABRIC

C a p a c i t y : F a b r i c F a c i l i t i e s

• VIT Textile QT : PPJ internal Supply Chain - Capacity : 850 tons / month.

● Solution: Buyers & strategy products are considered as key value. Build up business based on buyers’ demand.

● R&D: Strongly focus on researching & designing investments to develop more valued competitiveness

● Sale & Marketing: Build up sales teams with more & more professional, pro-active & globalized skills

“PROFESSIONALISM MAKES US DIFFERENT”

Business activities are oriented to

buyers - ODM

Bring us difference

Bring values to buyers

Building-up and Development:Ø Pro-active Sales, Marketing, Merchandisers,

Designing, R&D Teams.Ø Effective monitoring of supply chainØ Sustainability SystemØ Quality Management System.Ø Lean Production, Flexible solution & best time

consuming capability.

29

MERCHANDISER

TECHNICAL SPECIALIST

MANAGEMENT

International communication skill

DESIGNERS

30

SUPPLY CHAIN MONITORING

Ø Stay active for materials from yarn, dye, spinning, cut & sew

Ø Stay active for supporting processes

- Spinning- Dyeing- Cut & Sew- Printing

- Materials- Yarn

- Sewing factories- Laundries- Finishing & R&D centers- Printing /Embroideries

DC delivery center Retailers Consumers

● Build up high skilled designing & technical teams

● Continuous improvement, unique & high quali ty products to be provided to buyers & consumers

● Research fashion trends for full – package service to market.

● Join designing events, together with buyers to build up shared values & reputation

31

PRODUCT RESEARCH & DEVELOPMENT

BUYER RESOURCE• Market research• Fashion trend analyzing

CUSTOMERS CARE• Screening best material suppliers• Follow buyers’ designs.• Provide printing/Embroidery designs

DESIGNING CAPABILITY• Set up professional designing teams to work with buyers’ designing teams for seasonal fashion trends analysis & development. • Together with buyers to develop high-end fashion brands

CAPABILITIES NEEDED

Q u a l i t y A s s u r a n c e

A dedicated Quality Assurance team is working during the full process in order to secure and guaranty the quality our customer are expected.

We are working on AQL 1.5 or 2.5, based on our customer request.

Nguyen Thi LienVice General Director PPJ