July / August 2018 • Issue 4 • PANELS & FURNITURE ASIA 22 FURNITURE MANUFACTURING Mr Dien Quang Hiep, Chairman and Director of Mifaco M ifaco’s business philosophy for success is simple with only two rules: Market and management. “Anyone who can solve these two points will see good outcomes,” r Dien Quang Hiep, Chairman and Director of Mifaco, said. Mifaco chooses its customers very carefully, offering design and production support for those whose business values are aligned—that is, investing in long-term relationships. It is one of the reasons why they were able to ride through the economic recession. The company has only a few customers, but it is enough to sustain business. In fact, they are the number one vendor for a U.S.-based company for the second year running. “I understand that businesses have to earn a profit, but they also have to understand the way I work. This is the reason why I don’t have many customers, I am more concerned with lasting relationships,” Mr Hiep explained. Mifaco produces wooden furniture, but has also started a new department for sofas and fabric. Seventy per cent of all products are exported to the U.S., and 30 per cent to the U.K. and Korea. It wants to sell to more countries, but that would depend on how “lucky” they are, according to Mr Hiep. The company is also looking to reach out to the markets in their backyard—Vietnam and Asia where living standards are gradually increasing. Currently, its furniture lies in the mid high-end range. Mr Hiep wishes to produce more high-end furniture but that has to be properly managed. “If you produce low-end today, middle-end tomorrow and high-end the day after, it is very risky for production. The workers cannot tell the difference. So we have to focus on one or two levels and these levels cannot be too different,” Mr Hiep said. Less is more for this Vietnamese-owned factory in Binh Duong, Vietnam. Mifaco doesn’t accept more than a selected handful of customers as establishing deep, long-lasting relationships are more important than profits in the short term. Mr Hiep explains why.