Flagships of the Vietnamese economy

The story began 20 years ago, when a group of young Vietnamese students finished their scholarship programmes in Eastern Europe and launched their own noodle business in the foreign market.

The founding members found themselves in a rapidly changing market of economic liberalisation, and instead of standing idly by, they were determined to make their business a force for change.

Masan made its return, thought it started off in Eastern Europe, to Vietnam in 2002 with the launch of Chin-Su fish sauce, making its first step towards sating the appetites of 90 million people. Since then, Masan has spearheaded fundamental changes in many segments, such as food and beverages, tungsten production, and meat processing.

Masan is now one of the largest corporations in Vietnam and aims to be “recognised globally, as well as become the pride of Vietnam by virtue of its successful and unique business model in Asia” by 2020.

Referring to the company’s target of achieving a market value of 10 per cent of the gross domestic product, equal to $20 billion by 2020, chairman Nguyen Dang Quang said, “it does not sound impractical.”

Quang’s confidence is bolstered by the fact that Masan achieved its target of $1 and $5 billion in 2011 and 2015, respectively.

“Masan thinks of Vietnam as a country with great potential in natural and human resources, while our competitors see it as a poor country. It is a matter of perspective,” Quang said.

FPT – the flagship of innovation

FPT became a founding member of the World Economic Forum (WEF) in 2011. The title designates enterprises with a leading role in the world economy as well as top firms in sectors from their home countries. FPT was chosen for its spearheading activities in the Vietnamese IT market.

FPT chairman Truong Gia Binh reiterated the company’s ambitions to go global. Since the beginning of 2016, FPT has been striving to innovate its business models to seize new opportunities in both local and foreign markets. In particular, its transformation to a public-private partnership model will be accelerated in Vietnam, Myanmar, and Bangladesh. At the same time, fixed-price contracts will replace the traditional man-month contracts.

Speaking at the 2016 WEF event themed “The Fourth Industrial Revolution signals new climate”, Binh expressed his strengthened confidence in the future of FPT.

“FPT has been working with the leaders of the digital revolution and is increasingly engaged in the value chain of global technology, especially in terms of SMAC technology and the Internet of Things,” he said.

FPT’s target of becoming a global corporation seems closer every day, but is accompanied by challenges which include a higher demand by customers, maintaining competitiveness, and introducing large-scale corporate management.

“Issues we will certainly overcome,” Binh assured his co-workers.

Vinamilk – shipping national pride

Vietnam Dairy Products JSC (Vinamilk) aims to maintain its leading position in Vietnam’s $4 billion domestic dairy market in the next five years.

Over the last decade, its annual average revenue soared 22 per cent to VND40.223 trillion ($1.85 billion) by 2015. Meanwhile, pre-tax profit surged 32 per cent each year, to VND9.367 trillion ($430 million) in 2015.

Furthermore, by 2017, Vinamilk hopes to join the rank of the world’s 50 biggest dairy companies. Revenue from foreign markets is also hoped to make up 50 per cent of domestic revenue within the next five years.

The upcoming Trans Pacific Partnership is assessed by Vinamilk’s management board as “containing plenty of opportunities and challenges.”

High hopes for other ships

Vietnamese people fully acknowledge their country’s list of potential improvements. For example, income per capital is equal to only one-third of that in the US, but the price of many services are the same. Vietnam is the largest exporter of coffee, but the quality of coffee is still relatively low. Or fish sauce, the traditional pride of the country, is still hard to come by anywhere overseas.

Vietnamese people keep alive the hope that more and more corporations, being awareness of the country’s needs, will grow stronger and approach the global stage of integration.