Entrepreneur Vu Van Tien: Man of Simplicity

His business career is full of ups and downs but he is still a simple and open man. “When I am successful, I am not complacent. When I meet problems, I am not softened. Money, if you lose it, you can earn later. Only love is eternal,” said Mr Vu Van Tien, President of the Board of Directors of Hanoi General Export-Import Company (Geleximco).

He was born into a poor family in Tien Hai district, Thai Binh province - a land of revolutionary. If he lacked willpower, bravery and creative thinking, he could not have made such groundbreaking milestones in his life.

 

In the early 1980s when he was studying military technique, he dropped out to start a new study at the Hanoi National Economics University. After he graduated, he was assigned to work at an agricultural material agency but he seemed not to like it. In 1993, he managed to found Geleximco. His choice was almost unprecedented in the country at that time - a private company directly engaged in export and import. The first step was always the hardest while a miss might price a mile. Indeed, the shortage of experience and capital was a hard challenge for Mr Tien at that time. But, with his prudential approach, uprightness and reputation, Geleximco gradually secured a good foothold on the market. Mr Tien was famous for his pro-community decision-making. In any circumstances, he and Geleximco always did systematic and lawful business and investment. Every little helped; he and Geleximco steadily and robustly advanced forwards. In 1999, the company invested US$40 million to expand production and employed 2,000 workers. The workforce has increased to 3,500 in 2002 and to 6,000 up to now.

 

By effectively utilising internal forces and external resources, Mr Vu Van Tien successfully organised many joint venture models. The company and its partners invested US$11 million to build a 4-star 15-storey Ha Long Dream Hotel with 160 rooms in Bai Chay, Quang Ninh province. The hotel, with 60 percent stake held by Geleximco, also provides offices for rent and entertainment services. Geleximco and Honda Motor invested US$39 million to set up the GMN automobile and motorcycle parts production joint venture. The joint venture, with Geleximco holding 30 percent of interests, manufactured automobile and motorcycle parts for Honda Vietnam. In addition, it also assembled Honda motorcycles with a capacity of 400,000 units a year. Honda motorbikes made by Geleximco used to stir up the local market. This business success gave Mr Tien the nickname “Tien Honda”. Geleximco also contributed 35 percent of capital to a US$35 million instant noodle joint venture with a food company in Nhu Quynh - Gia Lam. The joint venture had five production lines, using Japanese technologies, with a monthly designed capacity of 50 million packages of noodles.

 

Geleximco has seen an average annual growth of 7.6 percent in past five years, contributing hundreds of billions of Dong to the State Budget. Currently, it has over 6,000 employees and many branches in Ho Chi Minh City, Can Tho, Lang Son, Quang Ninh, Hung Yen and Thai Binh. Geleximco is now carrying out many projects, including CT2 building project, Van Canh high-grade resort, Phu Man township - golf course project, Hoa Binh township project, and 600-MW Thang Long hydropower plant.

 

In particular, his business imprint was vividly shown with the bold deal with Semen Gresik, the largest cement producer in Indonesia. The latter invested in Thang Long Cement and worked closely with Geleximco in this business. At that time, nearly 20 cement plants across the country were seeking for foreign strategic investors and the deal, completed within four months, surprised many M&A experts. In the event of capital scarcity in cement industry, the competition for investors was extremely fierce at that time.

 

Running nearly 30 companies, including many very big ones, Mr Tien’s roles and impacts in Geleximco are so profound. To lead the firm forward, he needs excellent and devoted assistants. Geleximco is now engaged in real estate, banking, finance, industry, trade, services, information technology, education and training, with industrial production playing the central role. He said “Trade makes me wealthy faster but manufacturing remains the foundation, particularly for the time being. Industrial manufacturing is harder, less profitable but sustainable.” For him, a tree must be firmly rooted and grown on clean ground to be strong and healthy. With its tremendous contributions to the country, Geleximco has been awarded many Labour Orders and Vietnam Gold Star Awards.

 

But, like any other sensible, visionary executives, Vu Van Tien still stumbled with unsuccessful projects. So, what has helped him get balanced after such falls?

 

Market is not a battlefield. Doing business must be profitable but there must be mutual benefit. This business philosophy makes him a beloved gentleman in the eyes of friends and colleagues.

With his continuous efforts and great contributions, Entrepreneur Vu Van Tien has been honoured with many awards like Second-grade Labour Order; Third-grade Labour Order; Order for The Young Generation; Certificates of Merit from the Prime Minister, Hanoi People’s Committee, and other central and local authorities and agencies.

The success of a business is not only expressed by performance indicators but also measured by its responsibility and sharing to the community. Geleximco wants to be a citizen of responsibility to make this society better. The firm also takes deep care of its employees and their families. All employees are ensured all mandatory rights and interests like reasonable compensation, insurances and standard working environments. Geleximco confirms that taking care of employees is one of its key development objectives and motivations.

 

“Each person has his own feeling, thinking and way of help. For me, I was brought up in a poor family and I thus understand their hardships. I can’t help seeing people with bad luck. Doing charity is my routine. Seeing others happy makes me happier. I don’t know whether feel it or not but I am very clear,” he said. This is also the driving force for Entrepreneur Vu Van Tien to balance in life and move ahead.