With a 12-year operation period, the trademark of Sao Mai An Giang Group (SMAG) has been set and shined not only in Vietnam but also in the region. This is the first non-state enterprise in Vietnam to set up the communist party cell. The group always grows strongly and continuously develops, which is proven by a lot of achievements and titles during its operations. In 2008, the group was honoured with the title “Vietnam Glory”. How do leaders of the group operate it in the circumstance of current economic decline?
Impression in economic crisis
We are really surprised at and impressive in the achievements that the group has been recording in the circumstance of the global economic crisis. Even though many companies are struggling to survive, SMAG still grows well. The company’s profit in 2008 grew 41 percent, of which, the company paid dividend at 30 percent and spent the rest of 11 percent on production. While many companies have to close some of their factories and sacked part of their workers, SMAG bravely recruited nearly 2,000 more staffs and workers in recent two years, which is a remarkable move in the circumstance of economic decline.
Despite its short-term operations in seafood industry, the group has penetrated into many markets in the Europe, Middle East and America. The group’s exports in the first six months of this year were equal to the entire figure of 2008. Despite the world economic crisis, SMAG is still determined to expand its markets and develop more aspects of activities with priority given to potential investment. The group has been boosting up investment in building resorts to serve experts and industrial parks as well as houses to lend to workers, which boast a great demand and advantages. SMAG has built accommodations for 2,000 workers in Long Xuyen and Vung Tau cities, and Vam Cong industrial park in Dong Thap province. Mr Le Thanh Thuan, SMAG Chairman of the Board of Directors said, “Despite the economic decline, our group still operates stably and continues to develop with good financial competence.”
Secrets to overcome crisis
“SMAG leaders are fully aware that the economic crisis will be over soon and the period was a good time for enterprises to make preparations for their investment plants,” Mr Le Thanh Tuan said, elaborating that was the secrets of SMAG to maintain operations as well as continue to develop in the recent time. Moreover, the group is always active to seek new opportunities in hard time and set a good status to ensure sustainable development while being careful to make development plans in order to set a good position and prepare for future competitions upon the economic recovery.
The group attaches much importance to human resource by initiating humanity, interdependence, support, and willingness to create favourable working environment for staffs and workers. At this time, none of staffs and workers incurred salary reduction but enjoyed improved living standards. SMAG has spent VND14 billion on building a refectory at its Seafood Processing Plant in Vam Cong Industrial Park that freely serves two meals for staffs and workers all days. Therefore, every people want to work for SMAG for a long time and consider the company as their beloved families. The most important element that has helped SMAG overcome challenges is the steady leaderships of its members of the board of directors who are former general directors and directors of state-owned companies for 20 years prior to equitization. These leaders are very experienced, which fosters perfect business administration. In addition, pre-eminent health and brainpower by the leaders have facilitated SMAG to grasp opportunities, steadily stay in challenges and bravely draw out right strategies and directions to steer the SMAG “ship” to dock of success.
Sao Mai today and its prospect.
After a considerable period of establishment and development, SMAG now has five member companies with nearly 4,000 staffs and workers, mainly operating in fields of real estate; finance; restaurants, hotels, tourism; aquaculture; and seafood processing for exports. Up to 60 percent of SMAG strategic shareholders are foreign partners while many local prestigious finance institutions have pledged financing for the group’s projects. SMAG has formed its trademark by major projects of Sao Mai high-level Urban Area in Long Xuyen City of An Giang province, high-level residential areas in Ward 7 of Ben Tre Township in Ben Tre province, Sao Mai Resort, and Hotel Complexes for South Korean experts in Ba Ria-Vung Tau province. Any places that SMAG has invested in are developed with better people’s living standard via satisfactory site clearance compensation, job creation, improved infrastructure and living environment. The group has been continuously accomplishing Vam Cong versatile industrial complex that comprises three seafood processing plants with the biggest capacities in Vietnam. The first plant has been put into operation. The project has proven SMAG’s long-term and sustainable development strategy to take advantages of the endowed the Mekong River.
Mr Le Thanh Thuan said SMAG plans to approach the real estate hub of Vietnam, Ho Chi Minh City by starting construction of a twin tower to supply apartments and offices for rent in late 2009. The 32-story buildings will be built on a 90,000-square-metre area in District 8 of Ho Chi Minh City at a total of over VND1 trillion (US$59.17 million). In addition, SMAG has acquired land in Hanoi to prepare for a high-ranked apartment and office project with the same size as the twin tower in Ho Chi Minh City. Particularly, in the 2010-2015, SMAG will invest in Vam Cong Bridge Industrial Park and Seaport Complex that will occupy 260 hectares and costs a total of VND1.5 trillion to produce goods for exports by the Mekong Delta region to foreign markets via international seaports. The project will benefit over 10 large plants and serve a four-million-tonne commodity base depot system in the area.
Chairman of the Board of Directors cum General Director Le Thanh Thuan is relatively attentive to the national development in general and the Mekong Delta region’s development in particular. In 2008, he had sent a letter to Deputy Prime Minister Nguyen Thien Nhan to express his worries as well as desire to contribute a part to mitigate the increasing child drowning in the Mekong Delta region. On average, the group spends over VND3 billion on social and humanitarian activities per annum. The group has coordinated with the Can Tho City-based Television of Vietnam (CVTV1) to form a programme entitled “Disadvantaged lives” for millions of donors to fund tens of billions of Vietnam dong for the needed. Obviously, SMAG is a global economic group, which has sustainably developed and had its trademark shined as well as set a good status in the region. In the near term, SMAG hopes to record more outstanding achievements. SMAG’s success has proven the strength of brainpower, courage, determination and aspiration of Vietnamese entrepreneurs to further develop. The more challenges SMAG overcome, the more bright achievements the group have obtained.
Minh Hung
Vietnamese
