Phu Khanh Cigarette Company (First name of Khanh Viet Corporation – Khatoco) was established in 1983 in the subsidy period. However, from the beginning days, Khatoco was not totally subsidized by the State and had to be self-reliant. At that time, Khatoco had not any office, factory, production equipment and means of transport. Its initial capital was only VND 6 million. Over 35 years of building and development, Khatoco was listed in the group of 108 businesses out of the top 500 Vietnamese largest businesses.
Advanced cigarettes production line
This was the start-up stage. Khatoco had to find the way of development. In order to develop the cigarettes industry, Khatoco had to save every amount of capital, maximizing the strength of its human resources. Therefore, only 10 years since its establishment, Khatoco basically completed the mechanization of cigarettes production and began to accumulate capital for expanding this industry and its auxiliary businesses. Starting with nearly nothing of capital and assets , up to 1993, Khatoco had the own capital of VND102 billion, the assets value of VND 274 billion and 1200 employees.
Modern corrugated carton production line
Entering confidently to the second decade, Khatoco had many robust and brave decisions for expanding business. Many big projects were implemented intensively for investment in advanced equipment and technology for cigarettes production. Khatoco bravely invested to expand various fields of businesses. During this stage, 8 new companies were set up. The annual basic indicators grew by 20% averagely. Owned capital increased to VND 396 billion. Assets value increased to VND 855 billion. Employees increased to 2850. With the above achievements, Khanh Viet Corporation was awarded the title Labor Hero in the renovation period by the State.
In this stage, Khatoco operated under the structure of multi-business parent company – subsidiaries. Although our country entered into deep integration process and the world economic crisis impacted considerably on Vietnamese economy, Khatoco continued to develop with the average growth of 16-24% per year. 7 new additional companies were established and 5 companies of different business joined Khatoco. At this time, Khanh Viet Corporation had 27 member companies with 9 business groups. Owned capital increased to VND1,760 billion, assets value increased to VND 4,115 billion, employees increased to 5,000. Annual state budget contribution increased to VND 3,000 billion. Khanh Viet Corporation was awarded the First-Class Independence Medal by the State.
Modern offset printing line
The period 2013 – 2018
Our country changed itself comprehensively, vigorously and was in deep international integration. The market economy with many economic sectors made the fierce competition. This was the most difficult stage of Khatoco however it steadily overcome all difficulties to maintain the high growth rate. Employees increased to 5200, owned capital increased to VND 2,840 billion, assets value increased to VND 5,818 billion. According to the State’s strategy of restructuring Khatoco, Khatoco will focus only on the industries which have been the traditional strengths of Khatoco and Khanh Hoa province. Khatoco will implement the equitization, withdrawing state own capital from the subsidiaries and joint-stock companies and associated companies in order to improve the efficiency of all economic sectors while ensuring the sustainable development and increasing the competitive capacity of Khanh Viet Corporation. During this period, Khanh Viet Corporation already withdrew all its capital from 12 subsidiary companies and changed 01 subsidiary company into associated company. This is really the great effort of Khanh Viet Corporation’s Management Board.
Over time, Khatoco has gradually affirmed its trademark. In the new stage, equitization will create the opportunities and motivation for Khatoco’s development but also big challenges to overcome. The market economy, comprehensive and extensive international integration require Khatoco to change itself in order to go forward. Khatoco will base on three pillars: Promote the tradition of a heroic unit; change the administrative thinking suitable with new management science; promote the internal force for sustainable development.
Khatoco – Trang E Industrial Cluster
“CHANGE THE WAY OF THINKING, PROMOTE THE INTERNAL FORCE” is Khatoco’s slogan in the new stage. Being confident to enter into the future, Khatoco will concentrate not only on traditional industries having the strengths of Khatoco and Khanh Hoa province so far but also seizes the future business opportunities. Cigarettes, sea-ecotourism, infrastructure development, real estate and fashion industry continue to be its main businesses to light up Khatoco’s aspiration.