For decades, Vietnamese textile and garment factories often found themselves at the bottom of the value chain, importing raw materials, performing contract manufacturing under tight deadlines, and operating with thin profit margins, according to a representative from TNG Investment and Trading Joint Stock Company (TNG). However, the partnership model between TNG and Decathlon, a French sports retail brand, is proving otherwise, as a domestic enterprise now proactively manages production and integrates deeply into the global supply chain.

After more than 10 years of collaborating with Decathlon, TNG has mastered various stages, from local recycled cotton sourcing and industrial printing to high-tech embroidery and packaging.

TNG staff discuss products at the recycled cotton production factory, where the company proactively manages supply and optimizes product quality control. *Photo: TNG*

The partnership reached a strategic turning point with the launch of a Joint Development Center. Vietnamese engineers at TNG do not simply execute existing designs but actively co-create with Decathlon's production engineers in Vietnam and France, developing high-performance running and outdoor products for the global market. This mastery of the entire process, from design testing to finished product manufacturing "under one roof," enhances TNG's supply capacity, optimizes quality, and shortens time to market.

TNG is realizing its strategic vision for a future factory through an international-standard smart factory model. The company invests significantly in sustainable operations to strengthen its position and expand its influence in the global supply chain. This transformation centers on a shift from manual paper-based processes to a comprehensive digitized data system. Currently, TNG's entire factory floor is synchronously connected through a manufacturing execution system (MES) and an internet of things (IoT) network.

Visitors learn about products at the Development Center at TNG's factory – a co-creation space for Decathlon's production engineers in Vietnam and France. *Photo: TNG*

The real-time tracking system for sewing lines allows management to make immediate decisions to minimize risks, eliminate losses, and optimize operational performance. Material flows and automated hanging lines are linked to the internal enterprise resource planning (ERP) system, creating data transparency and eliminating common operational bottlenecks in large supply chains.

Looking ahead, TNG will continue to collaborate with Decathlon to leverage their digital and AI partner ecosystem, developing AI solutions for the factory. These technologies are expected to optimize costs, improve operational efficiency, and enhance production capacity.

Beyond technology investment, TNG and Decathlon emphasize placing the human element at the center of their digital transformation. A company representative explained that the goal of applying data and automation is not to increase labor pressure, but to improve productivity and working conditions for workers.

TNG factory visit event within Decathlon's "Partners Club" model. *Photo: TNG*

This approach is implemented through the Employee Welfare Survey (EWB), an initiative by Decathlon and TNG to regularly collect worker feedback. Data from periodic surveys helps the company understand actual factory needs and informs policy adjustments.

Based on this feedback, TNG implements employee-centric solutions, prioritizing stable working hours and minimizing overtime reliance. This combination of technology, data management, and human resources policies improves production efficiency while maintaining a quality work environment.

TNG also shared its digital transformation and human resource development efforts with industry partners at a recent factory visit event in Thai Nguyen. Under the "Partners Club" model, TNG opened its production facilities to hundreds of regional entities. The company presented its digitization solutions, production management, and employee policies implemented at the factory.

Hai My