Hoa Sen Group: Integrating Business with Social Responsibility

With our current business development strategy, Nghe An is determined as a potential market. In my opinion, this market gathers all conditions for robust development.

Firstly, with the forecasts of Vietnam’s economy in 2015, Nghe An will contribute significantly to Vietnam’s economic integration. In 2014, Nghe An’s gross domestic product (GDP) gained 7.9 percent and the year 2015 will be a pivotal year according to the five-year economic development plan from 2011 to 2015 and transfer into a new phase of development. Besides, according to Resolution 26-NQ/TW dated July 30, 2013 of the Politburo on Nghe An development towards 2020 where Nghe An province was defined to be developed into a leading province in northern Vietnam in 2015, and become an industry-leading province by 2020 and a centre of finance, commerce, tourism, education - training, science - technology, health, culture, sports of the North Central Coast. Thus, this is the suitable time for us to build Hoa Sen Nghe An Steel Sheet Plant.

 

Secondly, we chose Nam Cam Industrial Zone in Nghe An to locate our project because this is a strategic and convenient geographical location for trade and industrial development. Particularly, the industrial zone is 16 km from Vinh City, 12 km from Vinh Airport and 6 km from Cua Lo Town. It also lies on North-South railway. Besides, its technical infrastructure, which is basically completed, satisfies requirements of business production and infrastructure of every enterprise in the industry zone. Thirdly, we received a lot of support from the provincial government with good conditions to carry out the project. These factors were crucial in the process of developing and implementing the Hoa Sen Nghe An Steel Sheet Plant project.

 

For those reasons, we believe that Hoa Sen Nghe An Steel Sheet Plant will play a important role in the Group’s future development strategy. In the 2014 - 2015 financial year, we determine to strengthen the domestic market, expand retail-distribution network as well as increase exports. We plan to bring into operation the first phase of the plant with six production lines in March 2015. This facility will boost the production capacity to supply steel products that satisfy the customers’ needs in Middle and northern markets of Vietnam and increase exports to Laos, Thailand, and Myanmar as well.

 

 

Since the establishment of Hoa Sen Group, I took the philosophy of "Integrity - Community - Development" as core business values. During 14 years of construction and development, in addition to boosting production, I am always aware that sharing with the community, including charity, funding, is my responsibility. Starting the business from scratch, I do business with the concept of making money with integrity. Therefore, my business philosophy was integrity and transparency. I have now created stable and growing incomes for thousands of workers and made valuable contributions to the country.

 

Therefore, in the past years, Hoa Sen Group has always shared our accomplishments with the community by sponsoring charity and social programmes like Beyond Your Capacity Programme, Kind Heart Programme, Shared Story Programme, Futsal Football League for Children with Special Conditions, Golden Bell Programme, and support for 12 victims and rescue officers of the tunnel collapse in Da Dang hydropower plant in Lam Dong province. In the Lunar New Year 2015, we organised the “Happy Vietnam Family” Programme for 1,700 children with special circumstances in Ho Chi Minh City and other neighbourhoods. Especially, this year, we organised "Frontier Spring" Programme to bring gifts made by children in cities for poor children in border areas. I think this was a meaningful activity to encourage the spirit of solidarity and humanity of children. The “Happy Vietnam Family” Programme is an annual activity of Hoa Sen Group and this is the 6^th event that we wish to bring a warm New Year for children.

 

In addition to those activities, in 2013, we were a co-organiser for the Nick Vujicic event in Vietnam. In 2014, through the programme “Shining Vietnamese fortitude” which told true stories of endeavours in Vietnam, we wish to inspire the vitality of Vietnamese people to the community, especially the youth generation. This year, we intend to bring back Nick Vujicic to Vietnam with other destinations like Ho Chi Minh City, Lam Dong and Nghe An. For the programme in Nghe An, with the message of "Good services to others build up united society and strong nation" I hope this will inspire strongly to Nghe An people who inherit good cultural values over thousands of years.

 

In my opinion, the year 2015 will open a new door for the Vietnamese business community by deeply integrating into the world economy. But behind that door there are both opportunities and challenges. With the effectiveness of the ASEAN Economic Community at the end of 2015 and the conclusion of the Trans-Pacific Partnership (TPP) negotiations, the opportunity of advancing comprehensive integration into the world economy is enormous for Vietnam.

 

If Vietnam has substantial competitive advantage, the enterprises will get benefits from market expansion, exporting goods to ASEAN countries. On the contrary, without good preparation, the risk will come as a consequence. Vietnam will become a net consumer of foreign goods. Therefore, there is no other way than businesses must utilise and maximise their potential to improve their competitive advantage.

 

However, strong integration always goes hand in hand with fierce competition. It is a global playing field where every participating enterprise must accept. For Hoa Sen Group, we have prepared carefully to catch integration trends and opportunities when the ASEAN Economic Community officially takes effect. In 2015, we determine to focus on core businesses like steel sheet, steel and plastics to expand both domestic and foreign markets.

 

In 2015, we will expand rapidly our retail-distribution network and expect to open 50 new branches to bring our total branches up to 300 in the next three years. This is the core strategy of Hoa Sen Group, we determine that in case of encountering barriers to trade in export markets, our entired products will be sold in the domestic market. We have already prepared various scenarios to adapt quickly to any changes in the market, and this will become significant foundation for the Group’s orientation towards a leading supplier and distributor of building materials in Vietnam in the future.