In its 15 years of operation, Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) has constantly developed and achieved speedy growth. In the past few years amid volatile domestic and global economies, IDICO has endeavoured to overcome all difficulties and challenges to achieve results worthy of pride. The following interview with Mr Nguyen Van Dat, CEO of IDICO, shows the ‘sweet fruits’ IDICO has picked. Van Luong reports.
IDICO has maintained stable growth of business operations in the face of very tough domestic and global economic situations in recent years. What are the reasons behind the momentum that helps the corporation obtain those impressive results?
IDICO’s growth is steady over the years, averaging 15 - 20 per cent a year. This result is accrued from the unity, dynamism, creativity, tradition and internal sources of IDICO, particularly the flexibility of IDICO leaders in business operations.
That flexibility is reflected in the selection of appropriate business lines and the avoidance of direct competition with big, experienced rivals in the country. IDICO’s customers are mainly foreign investors which lease land in industrial zones. These highly individualistic, professional customers require IDICO to change its working style to serve them in the best manner. And, the reputation, brand and position of IDICO have also been uplifted and facilities its land leasing in industrial zones.
The corporation has also applied measures to cope with difficulties during the time of economic slowdown, like focusing resources for urgent investment projects which require capital for soon completion and operation; reducing, rescheduling and suspending ineffective projects; divesting from non-core businesses and poor-performing enterprises.
Based on its outstanding successes, what are the objectives and orientations of IDICO for the coming time?
"Investment for development" is always a primary principle and objective that IDICO has pursued in the past years. Based on its achieved results in the past years, IDICO will continue to make investments for sustainable development of its core businesses like industrial zones, hydroelectricity, transport infrastructure and housing.
Regarding industrial zone field, according to IDICO, Vietnam and ASEAN signed trade and economic agreements with South Korea, Japan and China and will sign free trade agreements like TPP and EVFTA in the future. Hence, Vietnam is forecast to be the destination of a new investment wave, especially in highly preferential sectors like garment, textile, footwear, agriculture, fishery, furniture and consumer goods. To get prepared for serving future investors, IDICO will continue to develop new industrial zones with modern and synchronous infrastructure.
With respect to hydropower, IDICO has invested, built and operated four hydroelectric projects, namely Srok Phu Mieng Dak Mi 4, Dak Mi 4c and Dak Mi 3, with a combined capacity of 333 MW. These projects play a considerable role in ensuring national energy security and developing its business operations. In the coming years, IDICO will continue to invest in power projects.
Concerning transport field, IDICO has invested and operated many backbone traffic projects like the upgrading and expansion of An Suong - An Lac section on National Road 1A, the expansion of National Road 51, the construction of Noi Bai - Vinh Yen section on National Road 2. These projects have helped improve the transport infrastructure system, promote economic development and accelerate urbanisation in the country.
In housing and urban development, in addition to An Phu high-rise housing project, IDICO also builds houses for workers in industrial zones. One typical project is the worker housing zone in Nhon Trach Industrial Park in Dong Nai province.
In addition, IDICO will develop machine and equipment development to serve its projects, based on the mechanical industry development strategy approved by the Prime Minister.
Corporate culture has a very special and important role in the sustainable development of a company. It is compared to a mirror to show successes and responsibilities of a company as well to its employees and the community. How is this activity implemented at IDICO?
People are the centre of every production and business operation of the corporation. The company is run and operated by people. Hence, in its business development process, apart from economic development objectives, IDICO also puts a premium on human factor development.
For key personnel, performing IDICO seeks, plans, trains and appoints suitable positions. People are provided with good opportunities for developing and contributing to business development.
For employees, IDICO ensures employment, income and material and spiritual life for them. They are medically and socially insured and provided regular medical check-ups. They are also given big bonuses in important anniversaries.
Furthermore, IDICO also demonstrates its responsibility to the community. The local government and IDICO actively take part in meaningful programmes and activities in support of flood victims or people in remote areas like border areas, islands and project areas.
IDICO has donated up to VND2 billion to Vu A Dinh Scholarship Fund, presents houses for policy beneficiary families, built resettlements for project-affected inhabitants, and regularly visited and presented gifts to the people.
On this occasion, do you have any message to US investors and partners? What is your opinion on industries in which the two sides can operate effectively?
Looking back on 20 years of relations normalisation, with the ongoing efforts of the Governments and peoples of the two countries, Vietnam and the US established a comprehensive partnership that has brought in more practical benefits to the two countries and contributed positively to the effort of maintaining peace, security, stability and development cooperation in the Asia-Pacific and South East Asia.
Currently, both countries are actively negotiating with other countries in Trans-Pacific Partnership (TPP). We hope that concerned parties will soon reach a consensus and sign the agreement in 2015 to open up new business opportunities for companies of signatory countries, including Vietnam and the US.
Vietnam is building and perfecting its market economy to integrate into the world economy. The Party and State of Vietnam are advancing consistent administration reform policies which cover institutional reform, bureaucratic reform and administrative procedure reform to create a conducive legal framework and environment for locals and foreign investors.
Vietnam has an important strategic position, hard-working and intelligent people, and gradually-improved labour quality and productivity. The investment environment of Vietnam is increasingly improved. With a desire to expand cooperation and potential in the region and grasp TPP opportunities, Vietnam hopes to continue to be a friendly attractive destination for all investors, including Americans.
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