Sharing his plans to return to his homeland, Mr. Nguyen Nhu Khue, Director of Lotus Chemical Technology Co., Ltd., said he didn't want to be a bystander to the country's development. Therefore, after his partner wanted to shift investment to China instead of Vietnam, he boldly separated and independently invested in a 50 million USD high-tech plastic project at the Saigon Hi-Tech Park (SHTP).
Giving up his executive position at a multinational corporation in Germany, in 1995, Mr. Nguyen Nhu Khue decided to return to Vietnam after 25 years of living, studying, and working in Germany to establish a business (enterprise) for technology transfer and production of plastic raw materials (PVC Compound) packaging under the legal name Lotus Chemical Technology Co., Ltd.
In 2004, keeping up with the integration trend, Lotus joined RKW Group, one of Europe's leading film and fiber manufacturers, forming a joint venture, RKW Lotus Co., Ltd., with the ambition to dominate the industrial packaging, consumer packaging, and high-end clean packaging markets in Asia, while leading in the production of PE and PP plastic films, non-woven products, and nets.
After 9 years of cooperation (2004-2013), RKW Lotus became the leading plastic exporter in Vietnam with an export turnover of 60 million USD per year, accounting for nearly 30% of Vietnam's total plastic industry export turnover.
"Why did RKW and Lotus decide to part ways when they were thriving?"
-"Initially, Lotus operated in three areas: technology and equipment transfer for the plastic, water, and environmental industries; export production (foam bags, films, etc.); and import substitution production. At that time, Vietnam still imported PVC Compound plastic resins. We had a factory in Hai Phong, which was also part of Lotus.
- Later, when the factory gradually reached full capacity and the market grew, we separated into three companies. In 2003, RKW Group wanted to invest in Asia. They were very keen on choosing China, but at that time, China was already full of factories, so they chose Vietnam. The Chairman of RKW was my classmate when I was in Germany, so we decided to work together.
-After 9 years, RKW Lotus grew 10 times larger than its initial stage in 2004. In 2010, when we became the leading plastic company in Vietnam with a revenue of 60 million USD per year, we wanted to become a leading company in Asia. However, to achieve this, RKW Lotus had to meet criteria for revenue, technology, product quality, and market.
-At that time, RKW and I agreed to move further by committing to form a high-tech project with the European Technology Center (Lotus EuroTech Centre) in Vietnam. But in 2009, my friend suddenly resigned as CEO of RKW. When someone else took over, they didn't want to do the high-tech project in Vietnam but demanded to move the factory to China.
-To show national pride and maintain credibility with those who supported us to set foot in SHTP, I disagreed with the partner and insisted on continuing the project in SHTP. However, unable to handle everything, I let RKW take over RKW Lotus alone, while I took on the project in SHTP independently."
"Compared to FDI enterprises investing in SHTP, 50 million USD is clearly not comparable, but for a private investor, this is a significant amount. How did you manage?"
- "Of course, to implement the project, technology was essential, and I decided to buy back the Lotus Packaging factory in Boizenburg, Germany, opening up a vast consumption market and facilitating the rapid transfer of high technology to Vietnam. At the same time, I had to find other partners to work with because, for a private investor like me, the required investment was substantial.
- However, until now, I haven't raised any capital, as I'm not familiar with the capital market in Vietnam. Secondly, the capital I have is entirely from my connections with foreign customers, so all my finances have been self-funded, including the capital to buy back the factory in Germany.
- Besides the investment capital, market assurance is also crucial. To some extent, I can ensure the market, but clearly, I can't handle everything alone.
- Because SHTP has areas that are too new to me, such as medical products and hygiene products (baby diapers, sanitary napkins, etc.), I need partners to ensure product output. So far, everything is stable, but it's not easy, and sometimes I feel tired."
"Investing in high technology is strongly supported by the State. From a private enterprise's perspective, what are the difficulties and advantages?"
- "In terms of policy, I see that enterprises receive a lot of support. However, because the high-tech park is the face of the city, the pressure on participating enterprises is also very high. That is, enterprises must meet the requirements for high-tech production techniques, technology, and product quality. Perhaps this is why FDI enterprises have more advantages than Vietnamese enterprises.
- Even my company is facing obstacles in the factory construction phase, although the project was licensed for investment and allocated land since 2012. The reason for the obstacle is that our partner withdrew capital midway, leaving me as a sole investor.
- Being alone, I had to start over, from procedures to market, technology, and product search. Currently, I'm preparing for the market. At the end of 2013, I bought a factory in Germany, restructured it, and now I'm starting to build a team for the high-tech park."
"Do you think this investment is beyond your capacity?"
- "Investing in a high-tech factory in the packaging and plastic industry is a matter of national pride, the dignity of a Vietnamese enterprise. Some members of the high-tech park's management board understood and approved our entry here.
- Vietnam talks a lot about economic restructuring, but if you want to move towards high technology, you must first have a market, which is why I bought the factory in Germany. This factory has both technology and a market, yet the enterprise still faces difficulties. I chose the German market because it is the most competitive market.
- Everything is cheaper in Germany than in England, France, Australia, and many other places. Walmart entered the German market and closed after 10 years. The reason is that German retailers only set a profit margin of 2%, while Walmart aimed for 5%, making it difficult to survive. However, if you can survive in this competitive market, the enterprise can grow."
"Have you ever thought you made a mistake choosing Vietnam for investment?"
- "I gave up a good job in Germany to invest in Vietnam not entirely for business and profit, but because I felt indebted to my homeland. It was also because of a promise to my teacher over 30 years ago, when I was a student at Chu Van An High School (Ho Chi Minh City).
- On the day I was about to board the plane to Germany for study, I and a few friends went to say goodbye to the principal. He said, 'I'm very happy that you're going to study, but remember, don't forget Vietnam.'
- At that time, I promised my teacher, 'We will not forget Vietnam, we will return.' I went to Germany with empty hands, and after 25 years, I can take care of myself and my family, leaving only the debt to my homeland.
- While working as the Director of the Technical Services Center of ICI Group (Germany), to gain a foothold in the Asian market, I agreed to become the Director of a leading German technology group, overseeing the Asia-Pacific region, with an office in Singapore.
- When I left Vietnam, I was only 18-19 years old, and during the war, I didn't travel much, so I didn't understand Asian culture well. This was an opportunity for me to learn if I wanted to work in Vietnam. During that time, every time I traveled to rural areas in countries like Austria, Switzerland, and Sweden, I felt a pang of nostalgia for Vietnam.
- When I was in charge of the Asian market, I realized that Vietnam was still a small market with weak competitiveness compared to countries like China, Singapore, Japan, Malaysia, Thailand, and Indonesia. Along with this feeling, I felt sad for Vietnam because there were things that were too easy but Vietnam couldn't do, which motivated me to return to my homeland."
"How do you assess the Vietnamese market?"
- "Vietnam has many prerequisites to develop better, the economy could grow by 15-20%, but I don't understand why the numbers are so modest: 5%, 6% or 8%. The Vietnamese people, Vietnamese intelligence are capable of driving the country forward. I realized this from the success of RKW Lotus, from the day of establishment to 2013, we never grew below 15% per year.
- If people go ahead of you, while they grow steadily at 2-3% or 5%, you are the one who comes later but you grow 7% and are complacent with this, you will never surpass them. China, Korea, Singapore are the same, in the first years they always achieved double-digit growth.
"From an economist's perspective, how should this be improved?"
- "I believe that, as a leader, you must have ambition so that young people are also imbued with those ambitions. Like on April 30th, when I was invited to attend the military parade, I was looking forward to the speech of the student from Ho Chi Minh City University of Law, but then I was quite disappointed with that speech.
- Because we look too much to the past instead of looking to the future. What will we be like in five years, or where will we stand compared to other countries in ten years, that is what needs to be done. That is, we must set specific goals, not be vague. Faced with someone's oppression, you can only try to move forward quickly so they can't do anything to you.
- I don't talk about other speeches, but this is a representative of young people. I really appreciate swimmer Nguyen Thi Anh Vien when she spoke to the press, what has been achieved is the past, tomorrow must continue to conquer other goals, not just be complacent with what has been achieved."
"Is there a difference between working for foreign companies and working independently with your own financial capacity, sir?"
- "From the moment I started working, I never thought of myself as an employee, because I was never paid any extra salary. Even when I reached a senior position, I always finished my work, not just working until the end of the day. One thing I hated the most was compiling reports for my superiors.
- Specifically, every month I had to compile dozens of reports from different regions sent to my superiors to read. For the corporation, this was important, but for me, this didn't generate money for the company (laughs).
- When working in Vietnam, I feel like I'm working for my country, responsible for many families, because when I was at RKW Lotus, I had over 500 employees. Although I was very tired, I was happy to harmonize the different personalities of my colleagues in the company, making them always harmonious with each other.
"According to you, what is the most important quality of a leader?"
- "In my opinion, it's vision and decisiveness. Vision determines the development of a business, country, and society. Therefore, you must see where you are going, where the world is going, and where your business stands. Accordingly, you must know where your place is and where you can fit in.
- Earlier, I said that the global plastic and packaging industry only grows by an average of 3-5% per year, but you grow for 20 years, every year 20-30%, even 50% per year. This means you are taking market share from other competitors. To do that, you must be better than them, specifically, you must know where you are better than them to get their customers.
- To do that, you must do three things at the same time: develop the market, develop products, and develop customers. In Vietnam, some FDI plastic companies that came to Vietnam even closed down, because they only knew how to sit and wait for customers to come to them instead of investing in customer development.
- Each customer today buys 10 units from you, but they can actually buy 100 units from you. Therefore, your job is to find out what products your customers are buying from other companies, and where you are better than those companies so they buy from you. Similarly for products, if you keep making the same product, it's very difficult to achieve significant growth.
- Previously, RKW Lotus succeeded by growing with a new factory every year. We identified what products the market needed and affirmed that the products we made had to win. However, not by winning on price, because if you get customers by price, you will eventually fail. These are the basic foundations of success."
Vie
Eng
De
