Set up 18 years ago, Sao Mai Group has twice witnessed financial crises and economic downturns and the group has overcome them to achieve miraculous development, starting from a small construction firm to become a powerful economic group with nationwide business presence and worldwide brand reputation.
Born in troubled times
The predecessor of Sao Mai Group is Sao Mai An Giang Investment and Construction Corporation, founded in 1997. The company started with just less than 10 employees and a registered capital of mere VND1 billion. With such a starting point, its competitive strengths were nothing more than brainpower and experience. Mr Le Thanh Thuan himself, President and CEO of Sao Mai Group, is a well-trained civil engineer with very rich experience in construction industry before he set up the company.
The Asian financial crisis in 1997 was really a nightmarish obsession of many economies and business communities. The crisis broke out in Thailand in July 1997 and impacted major stock markets and monetary centres. Although it was popularly called the "East Asia" crisis as it originated from East Asia, its influences and contagions immensely shook the world.
The start-up company immediately suffered from crisis impacts. However, with the intellect, experience and acumen of its leadership, Sao Mai gradually asserted competence and credibility with its projects. "The Asian financial crisis is like a survival test for Sao Mai at the time and we fortunately passed it in an impressive way to become a leading constructor in An Giang province and a reputable construction firm in the Mekong Delta and the southern region in just five years,” he said.
Growth in troubled times
There was an interesting coincidence in Sao Mai Group’s memorable and strategic development milestones. When it was founded in 1997, it encountered the Asian financial crisis. And, 10 years later, in 2007, it was hit by the global financial crisis and economic downturn when it adopted a new investment strategy.
When the global financial crisis and economic downturn in 2007 started to attack the economy, Sao Mai Group embarked on a series of so-called strategic but sensitive projects like the construction of real estate, industrial parks and aquaculture zones. I myself, the author of this article, who was in contact with Mr Le Thanh Thuan at the time, was also sceptical and anxious about the success of Sao Mai Group.
Contrary to fears and doubts of many people, Mr Thuan was very confident with his steps as he thought that a business would never fail if it served real life and demand of people. “All projects and products of Sao Mai An Giang Group are based on the potential of locality and on urgent demands of people; thus, there is nothing to worry about their feasibility,” he explained.
Indeed, the self-confidence, assertiveness and demand-based business philosophy of CEO Le Thanh Thuan not only helped the group live through economic challenges but also lead it to spectacular successes.
Continued acceleration
Financial crisis and global economic downturn broke out in 2007 but its impacts still effect the world to date. Many well-known businesses and entrepreneurs hardly overcame the catastrophe and even quit their efforts. Conversely, Sao Mai Group showed its strong potential and capacity as it continuously launched big and potential projects across the country.
In 2014, Sao Mai Group strongly impressed the market when it launched innovative fish oil made from pangasius fats, branded Ranee. The premium fish oil, Ranee, is a breakthrough step of the group as it is not only unique, pioneering in Vietnam but has also premium in quality and good to human health. A company’s recent report showed that Ranee fish oil is sold well in both domestic and export markets thanks to strong acceptance of consumers.
Also in 2014 and 2015, Sao Mai Group has taken over many corporate entities by purchasing stakes in State-owned enterprises (SOEs) and carried out many real estate and tourism projects across the country, such as Sao Mai Township in Trieu Son district, Thanh Hoa province and Sao Mai Phu Quoc Resort; and floated the shares of its affiliated company, TRISEDCO.
Asked about the secret to these successes, President Le Thanh Thuan said “Our secret is to stay close together and seek ways to live through the troubled time. Moreover, we must know how to find opportunities in threats to grow up.” He added that crises gave many valuable lessons of governance to Sao Mai Group. With a good leadership, and a dynamic and enthusiastic workforce, Sao Mai not only withstands but also expands production, creates jobs and increases investment.
After 18 years of construction and development, Sao Mai Group currently has 12 member companies with a combined registered capital of VND4 trillion, which are engaged in a variety of business fields like real estate, fishery, food, tourism, construction and financial investment, and have more than 6,000 employees in total. To become a powerful economic group and successfully realise its development strategy, Sao Mai Group has to make a greater effort. But, what the group has achieved in the past time is really a miracle.
Quoc Hung
Vietnamese
