“We Must Listen and Observe,” Says President of Toan Thinh Phat Corp

Five years ago, Mr Huynh Phu Kiet, Chairman of Board of Directors cum General Director of Toan Thinh Phat Corporation, drew the attention of young entrepreneurs in Ho Chi Minh City with his strategy of package investment in education, from primary to junior high school. At that time, in terms of real estate investment, attention was only paid in contemporary products of apartments and housing instead of investment in education, due to their quick capital payment and much higher profits. However, in his opinion, investment in education is investment in people and the whole society. Now, Toan Thinh Phat is investing in the 305 hectare Vinh Dam Harbour project in Phu Quoc, which is a concern among many investors.

 

In 2005, we took a trip to Phu Quoc seeking investment opportunity in coastal villas. However, in the last four years, Phu Quoc’s infrastructure’s slow development has kept many investors waiting and some projects now are suspended in unoccupied land. Only good infrastructure can pull investors back. One reason for the slow development of infrastructure here is difficulty in transporting building materials from mainland, especially in storm season, when the cost can be doubled. For example, Toan Thinh Phat’s office building on Phu Quoc cost VND10 billion, instead of five or six billion on the mainland.

 

Seeing Phu Quoc’s urgent demand for building materials, goods and transport means to modernize infrastructure, I decided to invest to provide building materials for island. Therefore, a harbour is needed for convenience in distributing goods.

 

An Thoi is in the West and, in storm season (usually from May to October in Lunar calendar) suffers strong winds; therefore, ships with building materials and goods cannot dock there. At the moment, An Thoi has three duties of welcoming travel ships, fishing ships and freight ships. As for Vinh Dam Harbour, we focus on services of welcoming freight ships. In the more distant future we will welcome travel ships.

 

However, even for just the services of receiving freight ships and building materials, fuelling ships and purchasing fish by fishermen, there are so many things to prepare. In Phu Quoc – there is only Southeast Vinh Dam area – I stress – which will be able to welcome ships throughout the year. Wind is blocked from the bay safely even in storm season and now fishing boats come there to shelter from storms.

 

Vinh Dam Harbour belongs to Toan Hai Van Company, a member of Toan Thinh Phat. Hai Van is owned by Vo Phuoc Hai, with over 20 years experience in marine harbours. We completely trust him and consider ourselves lucky to join this project.

 

At present, our company’s market share of materials in Phu Quoc is 58 percent and tends to increase strongly. At the time of my visit to Phu Quoc in 2005, there was a governmental plan for Phu Quoc until 2020, but little happened in the years following my visit. Airports were not improved and roads are of low quality. How can we invest in this context? Enterprises often orient their investment under governmental investment orientation, but also have to follow others. I think the best enterprises are the ones which know how to listen and observe. Now, when the airport is quickly being built, the main road going through the island is being implemented, and the Government adjusts planning with the vision to 50 years, we think it’s time Phu Quoc was awoken.

 

Those six ships take nearly VND 30 billion and we have no plans for more such investments. However, at the moment, including those six ones, there are 40 freight ships serving the island which we can hire at any time. It is the same for freight trucks; we have ten, but if needed, we can call for 50 ones at the same time. Moreover, Vinh Dam Harbour can welcome ships of 1,500 tonnes, as in our new plans. In peak season, in one month, company can provide 32,000 cubic meters of rocks, 500 tonnes of cement and nearly 10,000 bricks.

 

The project is divided into three periods from now to 2015. At the moment, we are in the first period with investment of about VND 100 billion. Toan Thinh Phat has 13 company members and two branches with total charter capital of VND 300 billion. Expected turnover in 2010 is VND 700 billion and we will definitely reach that number. We have considered entering the stock exchange for a long time, since our company has grown and should go public, not because of need for more capital. The recent economic crisis fiercely affected construction, slowing this project down. Maybe at the end of the year or early next year, we will quote on Hanoi Stock Exchange.