Three Kuo Family Plants in Vietnam

After Vietnam implemented reform, opening policies and carried out trade promotion activities, several businesspeople from Singapore and Taiwan arrived in Vietnam to survey the market. However, most of them showed tentative attitude toward business here because infrastructure was poor and they waited for policies changing the superstructure in Vietnam. Their tentativeness lasted from 1996 till the end of the 20^th century.

 

However, Taiwanese businesspeople seemed the bravest because they accepted the initial risks to deepen their foothold and create opportunities. Mr Kuo’s family chose Vietnam as their second homeland, as his son inherited his business of expanding factories and lived in Vietnam.

 

In 1993, Mr Kuo Jung Hua selected Bien Hoa Industrial Park II to invest US$6.3 million to build his Yng Hua factory to build aluminium products. In 1995, his factory began operation.

 

The Kuos found that, “The local market was still quiet. Everywhere was under construction and it was still an undeveloped country, but we sensed potential. We knew and believed that, based on the location and culture, Vietnam would grow fast.”  

 

The belief has strong ground because Yng Hua aluminium products are favourites in the Vietnamese market because they meet the EU standards and have high quality. The company’s products are also exported to other countries in increasing volumes.

 

To meet the demand of the customers, after six years, the Kuo family started construction on the second Mien Hua aluminium plants in Khanh Hau commune, Long Anh province. The business philosophy of the Kuos is “Endless learning, application of the latest technology to production to improve product quality and style.” Chairman Kuo’s son, Kuo Chia Ming, always launched the highest quality products at the most competitive prices in Vietnam. At the same time, Kuo Ming also flexibly applied management standards learned from Taiwan University to practical situations in Vietnam. His intelligence and sensitivity helped bring Mien Hua aluminium products to the second largest sales position on the market within two years, although the products faced strong competition from other brand names like Tungshing and Tung Kuang.

 

Kuo Ming said, “The prestige, punctual goods delivery and quality are crucial in business and a common voice between employers and employees is also vital. These are grounds for development.” Mien Hua products penetrated the market when other companies were looking for ways to approach.

 

The studiousness, creativity and flexibility to fit market changes are typical properties of Taiwan enterprises in general and the Kuo family in particular.

 

After nearly 15 years in Vietnam, the Kuos understand business practices as well as cultural routines and lifestyles in Vietnam. Thus, in 2005, they decided to invest US$20 million to build the third factory in Vietnam. Named Mian Lan Mechnical, it specializes in manufacturing home appliances with 9 lines; namely TV and Communication Dept., Air Conditioner Dept., Refrigerator Dept,. Aluminium Dept., Mould Dept., Plastic Injection Dept., Pressing Dept., Surface Coating Dept., and Evaporator and Condenser Dept.

 

“We will bring the best electronic and refrigeration products to Vietnamese customers. We pay special attention to product quality, colours and designs and we also attach much importance to customer convenience with the best customer care network,” Kuo Hsiu Lan, director of Mian Lan and the daughter of Mr Kuo, affirmed.

 

“With great experience, highly technical supervisor and staff, modern equipment which is operated by highly trained employees, plus 15 people from overseas who are leading each department, we are expecting a bright future for Mian Lan. We will continue our company’s philosophy of customer orientation (quality, price, delivery and service), Honest and Straightforward (attitude and relationship), Continuously creative (development and creation), and Employee Orientation (Respect and Appreciate),” she added.

 

Future Mian Lan products will be Mian Lan fridges and Niken TVs. This also shows the clear evidence for the flexibility of the Kuo family in business development in Vietnam.