Hoa Sen Group- Brand of Class and Friendliness

 

After 13 years of development, Hoa Sen Group has successfully built a chain of core competitive advantages, including (1) developing retail-distribution network to the end-user and managing effectively that network; (2) building a strong, friendly and community-oriented brand and creating demand from the brand name; (3) broaden investments with good technologies and low cost; and (4) building a professional, standard, administration system which is flexible, effective as well as adaptable to changes and challenges in the market.

 

In those four core competitive advantages, administration system is an important factor that Hoa Sen always focuses on. With a large scale of nearly 4,500 employees, HSG has managed its enterprise based on a system, set rules and ensured the compliance of teams, that aims to become the Group with world-class administration system. The clearest evidence to illustrate this is is the “Best Managed Company in Asia 2014” Award granted by Euromoney - a prestigious UK financial magazine. This award is gained through the vote of 130 market analysts from the top investment banks and research institutes in Asia Pacific region for total of 207 enterprises in the region. To attain this award Hoa Sen Group has passed several strict criteria from the analysts As a result, Hoa Sen Group was ranked first for the “Best Managed Company in Asia 2014” Award in metal and mining sector.

 

Those core competitive advantages have helped Hoa Sen Group to be the top   in steel manufacturer and trader in South East Asia. This is also the foundation for the Group towards the achievement   of US$1 billion revenue in 2016. To realise this goal, Hoa Sen Group has determined to develop both domestic and export markets. Currently, the firm has more than 150 branches across the country to bring its products to end consumers.

In addition, Hoa Sen Group also defines export as one of the most important business strategies. Immediately after Vietnam joined the World Trade Organization (WTO) in 2007, HSG has boosted its exports to over 52 countries and territories around the world. HSG has satisfied various strict standards   in some difficult markets,    like AS standards in Australia, JIS standards in Japan and ASTM standards the United States. This strategy has achieved certain successes based on three factors: (1) products with international standard quality , (2) reasonable price, and (3) fast delivery. In the past years, Hoa Sen Group has always strived for expanding export markets by actively participating in trade fairs in the world such as Vietnam Commodity Trade Fair in Myanmar, and Canton Fair in China…in order to introduce its products broadly to international customers. Besides, Hoa Sen Group has actively seized opportunities that generated from the cooperation between the Government and the private sector. When building national brands, the Government will provide business support solutions to integrate into the world economy and the company must take those opportunities quickly.

According to the results of the National Trademark Award 2014, Hoa Sen Group achieved awards in all three brands: Hoa Sen   steel sheets, Hoa Sen plastic pipes and Hoa Sen zinc pipes. In particular, Hoa Sen steel sheet is the unique steel sheet brand that win the National Trademark Award This is not only the pride of Hoa Sen Group but the clearest evidence of the quality of Hoa Sen Group’s products.

Besides, the strategy of Hoa Sen Group is becoming a leading supplier and distributor of building materials in Vietnam. In the past years, Hoa Sen Group continues to broaden investment in order to enhance the production capacity and increase supply of steel and steel sheet. In July 2014, Hoa Sen Group has started the first phase of Hoa Sen Binh Dinh steel pipe plant, expected to go into operation in December 2014 - after just six months of construction. On October 4th   2014, Hoa Sen Group started to build   Hoa Sen Nghe An Steel Sheet Plant in Nam Cam Industrial Park with an designed output capacity of 100,000 tonnes of steel pipe/ year, 150,000 tonnes of pre-painted galvanised iron/year, 400,000 tonnes of galvanised steel and aluminium alloy/year, and 400,000 tonnes of cold-rolled steel/year. The plant is built within three phases, started from September, 2014 and scheduled for completion in August 2018. Once this new facility goes into operation, it will improve the supply capacity for  the Middle and Northern areas, at the same time, increasing exports to Laos, Thailand, Myanmar, and other nations. In the next 2-3 years, Hoa Sen Group will continue to expand its retail-distribution network that increases the total of 300-400 branches in nationwide.

 In the past years, in the prospect of difficult economic times as well as the construction material industry, HSG, with its steady progress and flexible strategies, has “gone beyond the storm" very spectacularly. The average revenue growth rate from the fiscal year 2008-2009 to the fiscal year 2012-2013 was 43%/year. According to the consolidated business results in the fiscal year 2013 - 2014 (October 1, 2013 to September 30, 2014), HSG’s sales reached 810,226 tonnes, 16 percent in excess of the plan. Net revenue was nearly VND15,000 billions ( US$750 million) and net profit was VND410 billions (US$20 million) in this fiscal year.

 

Apart from good business performance, Hoa Sen Group has chosen a unique path for procommunity brand development. For years, Hoa Sen Group has launched a variety of community-oriented and sponsor programmes like Vietnamese sweet home, Futsal football tournament for kids with special needs, Nick Vujicic Programme to Vietnam in 2013, and Vietnamese vigour shining programme. With its impressive business growth and positive contribution to society, Hoa Sen Group’s brand gradually catches on the heart and mind of consumers as a powerful, user-friendly and community-oriented brand.

 

As a Buddhist, Chairman Le Phuoc Vu led HSG to develop rapidly and sustainably throughout the years. For him, success is not only for himself but also for everyone. Recently, he won the first prize of the “EY – the Entrepreneur of the Year” Award 2014 granted by the Vietnam Chamber of Commerce and Industry (VCCI) in cooperation with Ernst & Young Vietnam Co., Ltd (EY). In June 2015, he will represent Vietnam to join the final of the “EY World Entrepreneur of the Year” award in Monte Carlo, Monaco. Being an initiative, Mr Le Phuoc Vu has brought the Hoa Sen Group with firm forward movements which expanding to the world, reaching to the 1 billion USD and becoming the top supplier and distributor of building materials in Vietnam in the future.