In the past years, the slowing economy has adversely affected business operations of every company. To learn more about this issue through the perspective of an entrepreneur, Vietnam Business Forum Magazine interviewed Mr Tran Dinh Phu, CEO of Saigon Water Corporation (Sawaco).
Troubled economy has generated enormous pressures on business operations of enterprises. This requires better corporate governance in this tougher period. As a business leader, how do you think about this matter?
Each stage of development has both advantages and difficulties. In recent years, the Vietnamese economy is more troubled by global economic volatility. And, this bad effect has also wrecked on operations of enterprises. But, this is the "test" for corporate governance capacity of business leaders. This requires them to stay alert and active to capture, analyse and assess situations correctly to find solutions to serve their short-term and long-term business objectives. But, despite of visible difficulties and challenges, there are still opportunities. How to capture and utilise those opportunities is very important.
In hard times, how did you build operating ways for your company to have sustainable development as now?
As the water supplier for Ho Chi Minh City, the biggest and most populous city in Vietnam, Sawaco’s operations bear political, social and economic significances when it serves an important role in maintaining economic growth objective and ensuring social security. When input prices rose and investment capital for restoring and developing networks shrank, Sawaco leaders continually assessed situations and sought out measures to respond promptly to new developments, practise thrift and carefully consider every investment project. Particularly, Sawaco focuses intensive investment and implement the business motto “Towards community, development for better service." Sawaco continuously improves service quality, promotes administrative procedure reform and applies modern science and technology to management, operation, production and water supply. With its constant efforts, Sawaco’s growth is always stable during this tough time.
We are particularly interested in cooperation for joint development. This cooperation helped Sawaco not only deal with difficulties but also generate new driving forces to accelerate Sawaco development. Specifically, from 2011 to 2015, Sawaco built facilities to treat sludge from water plants in Ho Chi Minh City, funded by the Asian Development Bank (ADB) and the Government of Belgium; and applied information and communication technology (ICT) - a non-refundable aid granted by the US Trade Development Agency.
Given high input prices, huge reinvestment and maintain expenses, what is your opinion about this reality with current customers and water prices?
With a high rise in input materials, the company has to spend a huge sum of money to operate, upgrade and maintain the system that ensures sufficient water supply to 88.31 percent of households in Ho Chi Minh City. Therefore, to serve 100 percent households in the city by 2025, the company need to have a great effort. Sawaco is working out appropriate water pricing plans to ensure equality for company and customers. The corporation will carry out many programmes and plans to operate its facilities at the highest efficiency, reasonability and economy.
As a leader of a company with steady steps forward, would you be kind enough to share your experience with young people who are cherishing plans to start up businesses?
You need to clearly define the purpose of business start-ups, self-assess yourselves and assess business environment and social environment. You need to define your practical communication criteria and your behaviours to colleagues as well as other entrepreneurs. Especially, young entrepreneurs should always self-improve because you are the head of your company and you are the first to be looked at when other look to your company. Remember that your calibre is made from your conduct, qualifications and capabilities. Wish you all succeed in your career.
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