Dai Dong Tien Corporation is not big as many other companies, but it is 3-4 times larger than other companies where is located on a street in District 5 in Ho Chi Minh City. On the signs spread out the width of the front of the house, the company logo printed No. 504 created curiosity. "If you understand it's four oceans and the five continents, that's right," Cuong told us with a calm smile.
Change the production
As a leading company in the plastic industry, Dai Dong Tien's products have been exported to many countries in Europe, America, and Asia. Export turnover in recent years reached about $ 10 million, accounting for 20% of total revenue. Trinh Chi Cuong wants that number to double in the future, by moving from Asia to Europe and America. Cuong said "The situation is changing rapidly"
According to Cuong, Vietnam is signing many trade agreements, which is beneficial to domestic businesses. But the impact of the new business context differs from previous. Mr. Cuong acknowledged the current integration opportunities are more in-depth and more local. Business in Asia is pouring into Vietnam, especially from China. That is the opportunity for strong export.
In addition, within the enterprise, there are also significant changes. "In Dai Dong Tien, many old customers choose new suppliers, competitors are stronger than before," he said. Therefore, in the past two to three years, the CEO has been constantly enhancing the competitiveness of the manufacturing machine instead focusing on changing management as it did in the past.
First, he rearranged the sales mechanism. In the past, Dai Dong Tien had only two sales channels, consumer goods, and industry. This structure makes the company not exploit all potential customers. Cuong changed into four channels: traditional, supermarket, domestic industry and export. As can be seen, the new structure professional export, in addition to the intention to expand the domestic market.
However, this does not mean that the Company does not favor the domestic market. "The domestic plastic market is still a lot of potential," he said. Consumer plastics are still worth a look in the market for more than 90 million people. For industrial plastics or agricultural, forestry and fishery products, these are needed.
Preparing for larger orders, Dai Dong Tien invested heavily in technology. Last year, the company imported more than 30 new equipment, valued at about $ 4 million. Cuong said "But technology does not always solve the problem."
Previously, Dai Dong Tien purchased products in foreign countries for research with new products, then redesigned to suit the market in Vietnam. Cuong said, "We've been designing according to consumer demand over the last five or six year". For example, in some areas, heat preservation tools such as flask or stainless steel are expensive. Dai Dong Tien reduced the volume, change the technology vacuum to the pump type of heat retention. New products are more affordable, more convenient because they keep the heat and keep the cold. In addition, the company also launched the product with new materials, such as containers made of Tritan material, like glass but hard to break. These luxury and durable products are Dai Dong Tien's main competitors to foreign goods in Vietnam.
Dai Dong Tien's products are designed according to the customer's demand
The new-design mainly serves the processing customers, with about 30 new sample each year, more than three times the number of branded. The partners of Dai Dong Tien are big producers in the domestic such as Vinamilk, Kido, Nippon paint ... but also from Europe like Sweden. Cuong wants to direct the company to the image "One top shop", where can all the requirements for plastic products. He said, "In addition to the product, we also sell the production capacity according to customer requirements".
Thanks to improving competitiveness for production, Dai Dong Tien's sales achieved quite good growth. In the last 5 years, this figure has been around 20-30% per year. In 2014, this figure is 20% with a value of about 1,000 billion. As these changes gradually stabilize, Cuong plans to increase sales by 30-35% in 2015. After the first six months, he was confident that this goal could be achieved.
The process of taking on the role of managing and implementing necessary changes of Trinh Chi Cuong met many challenges. When new take over Dai Dong Tien, Cuong had to heard few words to voice. Some investors said that Cuong has no experience, difficult to make a story. Others said that Cuong does not understand the local business, sooner or later cause disaster.
There have a few persons know why he had to take on the executive role at the company. In 2007 his father was seriously ill, no one dared to assume responsibility for management. Because of management knowledge and his family business, Trinh Chi Cuong decided to step out the wave. Cuong studied of production management 3years and 4 years of business administration in Singapore. When he accepts the role of executive, he knew he will meet many problems, but it is Cuong's choice.
Talking about the early days of running the company, Trinh Chi Cuong come back. He said the two biggest challenges were working with people who wanted to keep their old and unrelated ways. Most of them were senior leaders of his father, Trinh Dong. Direct confrontation is not good and not convenience for the company, while Mr. Cuong desires their cooperation. On the one hand, he convinced them of the new plans and he set the rule of responsibility. If someone decides that person is responsible.
Gradually, when they saw Cuong work effectively, they looked at his strength and compromise. Cuong said "sharing the voice and vision, the best way is to sit down to clarify the problem" Teams that are not in the same direction are more dilemmas.
At first, Cuong passion changes management but forget to pay attention to this group. "What's good for them is they do not care about the company," he said. After this, Cuong more attends and process slowly. He gave them the deadline to complete the work, including the turnover targets. If completed above 80% of the target he will remind. Below this specific, he will warn. As a result, after three to four years since Cuong was promoted to general manager, these difficulties were gradually removed.
Looking back on the dramatic change in Dai Dong Tien, Cuong realized many differences in management between his father's generation and his time. The boss of the family company often consolidates the right to one place, with the bill price 500.000 they must wait for the boss to sign. Meanwhile, Cuong put everything in the process, with clear objectives. Therefore, the work had done faster and easier to assess
In addition, Trinh Dong mainly improved and Cuong made changes. Mr. Dong based on what company got to improve for the better. Cuong outlined clear goals, changing the structure to exploit all potential. This distinction clearly shows the business culture between the East and the West, though Cuong studied business in Asia.
To make many changes which help Dai Dong Tien "change one's look" in today, Cuong must accept many disadvantages and strenuous. When he come back to Viet Nam, he accepted mid-level wages and participated in many low-level jobs. In addition, he had worked both general managers and served head of department. "After the arrangement was over, I handed over and moved to another department, to continue the journey of change at most stages in the company," Cuong remember.
Thanks for to knowing the company situation in detail, Cuong had not heard the reputation of being inexperienced. Changing many things, the financial is problem Cuong face. He said the current structure of the investment is 50% of equity and 50% of bank capital. In long-term, when the scale increases the financial demand will increase rapidly. But he insisted he would not sell shares and invite other investors. Cuong said "The company is the heart of my parents"
To balance this problem, he said he would consider the options. In the immediate future, Dai Dong Tien will expand its joint venture with foreign partners by establishing new companies. He will seek partners in the domestic that's not to spend money to expand the investment.
Over 8 years of operation, Cuong's success is to change the production machinery towards specialization, process management. However, the long-term direction is still quite clear family business, because that still want to retain the private ownership of a brand has dedicated.