Nhan Hoa Co., Ltd - Investment in the Future

3:26:39 PM | 7/8/2005

Established with the function of trading motorcycles, in 2002, facing severe market fluctuations, the management board of Nhan Hoa Co., Ltd. decided to start a new development trend. “2002 was the most successful year of our company with a turnover of more than VND600 billion. However, in the following period, with State tightened policies, the company’s turnover decreased to VND179 billion. In this situation, we realised that a new direction should be found for sustainable development of the company”, Mr. Pham Van Khiem, Director of the company said. Thanks to the strong trademark of Honda on the Vietnamese motorcycle market holding 30 per cent, sometimes even up to 40-50 per cent of the market shares, being the general agent of Honda, the company has created a sound financial status. Last year, the sale turnover of the company went up to VND193 billion.

After careful market research, realising that fast growth of the market economy, the presence of foreign enterprises due to international integration and the changes in the thinking of domestic businesses have caused a boom in demand on high-quality office buildings. This is a potential market with great development in the coming years. The company’s management board has decided to build offices for rent, hotels and supermarkets.

First of all, it should be mentioned the company’s joint venture with the Unification Bicycles Company to build a Trade Centre at 198B Tay Son Street with an investment of VND198 billion in the first stage. According to the design, this will be one of the most modern trade centres in Hanoi with two floors for car-parking. Floors 1 to 6 will be used for supermarkets, the floors 7-16 will be developed into offices for rent. Expectedly, the work will be completed and put into operation in 2006. This will be a highlighting trading address at Chua Boc crossroads. The Join Venture decided to hire international consultants to ensure the best quality as well as compliance to strict regulated procedures for construction.

In addition, the company has also decided to invest in developing the four-star Majestic Hotel in Ha Long City. According to the design, this will be a 200-room hotel of international standard with special service quality to meet the requirements of European and Japanese guests. All the services of information technology will be available at the hotel. The hotel is expected to be put into operation in 2007 and will be an ideal destination for international visitors when they come to Ha Long Bay.

In addition, by the 3^rd quarter of 2005, Nhan Hoa Co., Ltd. will invest in an air-condition installation factory in the Cau Giay Industrial Park. With a plan to set up a joint venture with a Thai air-conditioner firm, Nhan Hoa committed to bring about the products of ensured quality at reasonable prices. This is an important progress for the company on the road to development from a trader to a manufacturer.

Information technology has played a big role in the success of the company. Being a non-state enterprise operating in the economic integration process, the company’s management board acknowledged that information plays a great role in enterprise development. “We understood that, the biggest difficulty faced by the company is catching up with the pace of information technology development, which is changing everyday”, Mr. Pham Van Khiem, Director of the Company said, “We need qualified staff, who should be regularly upgraded with professional knowledge, to apply information technology suitable to the company’s businesses”. Since 2002, Nhan Hoa has used the “Fast” accounting software to speed up the preparation of the company’s financial and business reports as well as assisting the managers to issue timely and accurate decisions.

Furthermore, the company has applied Honda’s DCS software Vietnam in its sales activities. Good use of updated information from the Internet through computers connected to the Local Area Network has helped Nhan Hoa Company to have an overall look of the market. Expectedly, in the coming time, along with the investment in trading supermarkets and hotels, the application of information technology will also be fostered. According to estimations, the company will invest more than 10per cent of its total investment in information technology. This important improvement and the management experience are “accumulating” day by day to help the company in obtaining sustainable development and confidence in global economic integration.