Modern Management for a Vietnamese Industrial Park

Hung Yen. Le Manh Hung is Deputy Chairman of the Executive Board at Pho Noi Textile and Garment Infrastructure Development in the Vietnamese province of Hung Yen, which develops and manages industrial sites for investors – mainly from the textile and clothing industry. He participated in the MP for two reasons: on the one hand, his company was looking for investors for the construction of factories in its new industrial park; on the other hand, already established foreign investors expected modern industrial park management.

2012 in Germany then Le Manh Hung visited the German catering chain HOTALO. Its owner is originally from Vietnam and has already been living in Germany for decades. At the time, the chain operated 16 branches and was on course for expansion. In addition to the restaurant operation, the chain wanted to extend its activities to other business areas and, at the same time, benefit from the rapid development in the home country Vietnam.

At first sight, the two sides did not quite seem to be compatible. However, due to their mutual language and similar way of thinking, Le Manh Hung and the owner of HOTALO found a possibility for cooperation after several discussions. The chain wanted to invest in Le Manh Hung’s industrial park and establish a factory for fittings for the catering industry. Le Manh Hung agreed to utilise his business network in Vietnam to find customers for the factory, should the products manufactured there at some stage exceed the chain’s own needs. Pho Noi and HOTALO signed an agreement in May 2013 covering the implementation of a joint project in Le Manh Hung’s industrial park within two years – with a total contract value of five million euros.

The prospects for business with further partners are also good. “In Germany I was able to expand my network of contacts”, he says. Through the MP, he gained connections to both German and Vietnamese potential partners in Germany. Moreover, he established good contact with the other Vietnamese Programme participants from a variety of industries.

Le Manh Hung has succeeded in integrating the modern management methods that he got to know in Germany into the management of his company. He introduced standards for daily work, with which target achievement can be objectively measured. This meant a quantum leap in comparison to traditional methods, which depend more on intuition. Since his participation in the MP, the entrepreneur draws up a detailed plan for every new project, in which he defines all measures, tools and goals.

The new industrial park also benefits from modern concepts that Le Manh Hung got to know during his training: in planning and building as well as marketing, advertising and later on the management. His park distinguishes itself as an environmentally friendly area with pleasant work surroundings. The “green” character, which is seldom found in Asian industrial areas, has aroused interest on the part of investors from Europe and North America. The founder says: “The business benefits greatly from the Manager Training Programme”.