Sao Mai Group: Impressive Strides

Sao Mai An Giang Group was set up in 1997 when the Asian financial crisis broke out. Like a test of its survival, Sao Mai impressively overcame the storm to become a leader of the construction industry in An Giang province and a famous contractor in the Mekong Delta after just five years.

 

In 2008 when the global economic recession and financial crisis wrecked on the economy, Sao Mai An Giang Group suffered the second crisis after 10 years of establishment. At that time, the company was embarking on a series of key projects which were deemed strategic to the national economy like real estate, industrial parks and seafood. Daring plans of Sao Mai An Giang Group concerned many people but President and CEO Le Thanh Thuan was still very calm and confident with his vision. This did not mean that he had no idea about adverse impacts of economic downturn and sensitivity of projects he was pursuing. He had thought and calculated very carefully before he started. “All projects and products of Sao Mai An Giang Group are based on the local potential and from the desperate need of local people. Therefore, there is nothing to worry about their feasibility," he said.

 

Not only being very bold, Mr Thuan is also known to be a visionary entrepreneur. Vam Cong Industrial Cluster Project in Lap Vo district, Dong Thap province is a testament to the vision of the Thanh Hoa province-born businessman. In 2006 when Sao Mai An Giang Group embarked on the investment in Vam Cong Industrial Complex Project, industrial zones were mushrooming. While many industrial zones endeavoured to draw businesses and investors to lease their land, Mr Thuan calmly pleaded a tenant - an affiliate of the Vietnam National Oil and Gas Group (PetroVietnam) - for the return of its rent deposits to make the industrial complex totally vacant. This surprised the locality where the project is situated. Not until such projects as IDI seafood processing plant, Triseco fishmeal factory, fish oil refining plant, and upcoming fish feed processing plant and packaging plant are built, they start to understand the long-term vision and calculation of this entrepreneur. The entire land fund in the industrial complex will house the group’s subsidiaries and associated companies to build plants relating to tra (pangasius) fish farming, processing and export. “If we had quickly leased our land at low rate, we would have had to rent in other places for higher rates and our factories would have been placed in different locations, thus making us more difficult to manage and operation,” he shared.

 

While construction, real estate and fishery fields are building up a strong foundation, the food manufacturing sector is making breakthrough development. This expansion has given Sao Mai An Giang a new position in the multi-business strategy. Ranee cooking oil, extracted from fish fat, was created by Sao Mai Group. This is the first cooking oil from fish in the world.

 

Equipped with European modern technologies, the only fish oil extraction plant cost over VND500 billion for construction. Outputted fish oil meets international Food Safety Management System (FSSC) standards. While fishy smell is removed, natural nutrients like Omega 3, Omega 6, Omega 8 and Vitamins A and E are maintained.

The presence of Ranee fish oil plant not only gives the opportunity to use highly nutritional fish oil but also brings hopes to million of tra catfish farmers. Certainly, with this plant and other projects deployed by Sao Mai An Giang Group, the added value of tra catfish will be raised to a new level.

 

Currently, Sao Mai An Giang Group is active in five fields, namely construction, real estate, export seafood processing, food processing and travel services. CEO Le Thanh Thuan said that real estate is still a core business line of Sao Mai An Giang Group. The group is seeking new projects while speeding up ongoing ones.

It comes as a surprise to many, even the group’s employees, that Sao Mai An Giang is heading to Can Tho City, the largest city of the Mekong Delta region. Mr Thuan is working with some partners in Can Tho City for project transfer.

 

According to the plan, Sao Mai Group will relocate its Administration Centre to Can Tho City and will carry out some upmarket urban zone projects here. "I appreciate the development potential of Can Tho City. As a centrally governed city, Can Tho is very well-planned for development. Amenities and ideal living environment will be the magnet to attract dwellers and the thriving centre of economic and cultural development of the region. The headquarters relocation is also the corporate modernisation plan. This step is also a stepping stone for the executive handover to future generations," he said.

 

After nearly 18 years of construction and development, from a small company, Sao Mai An Giang Group has become a powerful business entity with 10 member companies, VND2,800 billion of owner’s equity, and over 5,000 employees. Particularly, in 2014, the group was ranked Top 500 companies in Vietnam by Vietnam Report. Chairman and CEO Le Thanh Thuan was honoured by the "Vietnam Glory" and conferred many other honours.