With the strengthening of cooperation between China and Vietnam, China's "the Belt and Road" cooperation initiative has docked with Vietnam's "two corridors and one circle" development plan, and Vietnam has become a hot spot for industrial investment. As a giant in the pile foundation industry, Jianhua Building Materials, which is in the process of transformation and development, has been accelerating its international strategic layout and has begun to take shape. In less than a year, Vietnam will complete its industrial layout in Indonesia, Malaysia, India and other important countries along the Belt and Road.
According to Wu Guhai, general manager of Jianhua Diyue Pipe Pile Company, Jianhua inspected the Vietnamese market in 2010 and built a factory in 2011. This year is the fifth year for Jianhua Building Materials to enter the Vietnamese market.
Wu Guhai said with deep feeling that he personally believes that Vietnam is the most active and promising market in Southeast Asian countries, with an annual economic growth rate of about 9%, and is a country with great prospects for development. Vietnam's market is dominated by export-oriented investment, and its infrastructure and basic industries are relatively backward. Vietnam's current infrastructure construction, such as roads, is still relatively inadequate. Compared with two years ago, earth-shaking changes have taken place. The roads used to be bumpy, and Hanoi's new airport has just opened. Vietnam has proposed that it will take 10 to 20 years to solve the problem of relatively backward development. In order to achieve the goal of basically building a modern industrial country by 2020, the Vietnamese government is ready to vigorously carry out infrastructure construction, including highways, industrial parks and so on, so there are many opportunities and potentials for Chinese enterprises. At present, Vietnam's economy is taking off. Due to its political stability, Vietnam's development is similar to that of China. Its per capita economic growth rate has leapt to the second place in the world, becoming the second fast-growing Asian market, thus attracting a large number of foreign investors. Vietnam's entry into the Asian Free Trade Agreement has resulted in the reduction or elimination of tariffs and other related preferential policies, making it easier for goods to circulate among ASEAN countries, and accelerating foreign investment while increasing exports. More and more foreigners regard Vietnam as an emerging market with perfect industrial machinery and equipment and great potential. At the same time, Vietnam has become a manufacturing center in Asia, facing many challenges, opportunities and globalization trends. Of course, this is the best time and platform for global manufacturers and suppliers to enter the Vietnamese market.
It is precisely because of this development prospect of the Vietnamese market that Jianhua started its internationalization journey into the Vietnamese market in 2011. After obtaining the business license and investment license, the Vietnamese partners did not believe that the construction speed would be so fast from August 2011 to March 7, 2012. Wu Guhai told reporters that the construction time in Vietnam is relatively fast, and it usually takes one year to build a factory in Vietnam. Our product manufacturers all hope that the shorter the construction period, the better, and put into production as soon as possible to meet the market. Our goal is to complete the construction of the plant in half a year. We have overcome the difficulties and completed it legally. During the trial production, the Counsellor of the Chinese Embassy in Vietnam, the President of the Chamber of Commerce of Chinese Enterprises and the Vice President of the Maritime Province of Vietnam were invited to attend the opening ceremony.
Wu Guhai said that after the start of construction in 2012, it was difficult for Jianhua to operate in that year, because there were more than 30 enterprises in Vietnam's pipe pile manufacturing industry, so as soon as Jianhua entered, it was excluded and suppressed by Vietnamese counterparts. However, the Vietnamese market has a characteristic that it pays more attention to product reputation. For example, Vietnam recognizes China's machinery and equipment, such as Sany Heavy Industry and Sinotruk. Especially last year and the year before last, Sinotruk sold very well in Vietnam, and trucks and trucks basically occupied 60% -70% of the market share in Vietnam. Although the Vietnamese counterparts maliciously suppressed Jianhua, because Jianhua successfully copied its mature experience in quality, management and internal cost control in China, Jianhua Diyue Company soon got on the right track and began to make money in the second year, becoming the fastest profitable branch of Jianhua. From 2013 to 2015, the influence of Jianhua Company in Vietnam brand has been very great. After years of gradual brand communication, quality control and law-abiding operation, Jianhua enjoys a good reputation in construction, the same industry and engineering projects, and the business environment is becoming more and more harmonious. At present, there are 11 pipe pile enterprises in northern Vietnam, including 3 large-scale enterprises. Many large projects are carried out by project cooperation to avoid malicious price competition.
After five years of development, JHF has secured a market share in northern Vietnam and laid a solid foundation. Wu Guhai said that in the next step, the company will develop to the south, and is looking for a suitable location to set up another production base in the south, which will be more beneficial to the expansion of Jianhua brand and better customer service. The distance between the north and south of Vietnam is nearly 2000 kilometers. At the time of the interview, a cargo ship loaded with pipe piles was being shipped to the south of Vietnam at the dock of the building materials company. Wu Guhai told reporters that from the north to the south of Vietnam, the ship takes seven days to arrive. Since the beginning of this year, the volume of goods sent from Jianhua to the south of Vietnam has increased. So far, 170,000 meters have been delivered. The total sales volume of Diyue Company in the first nine months of this year was 1.1 million meters, of which the sales volume in the south accounted for 10%, accounting for a relatively large proportion. Jianhua's domestic business is transforming, extending from pipe piles to technical treatment and cement products. At present, the pipe pile market in Vietnam is in a growth trend, so the main focus of Jianhua Diyue Company is to do pipe pile and pile foundation related industries first, and then do some cement products in the case of projects. The development strategy of Jianhua Diyue Company according to local conditions is to stabilize in the north, build factories in the south, echo in the north and south, and extend the industrial chain development from pile foundation to cement products.
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Wu Guhai shared his feelings on Vietnam's business environment, which is of general concern to the industry, and how Chinese enterprises can seize the Belt and Road opportunities to go out.
Vietnam's political and economic environment is still good in an insensitive period. The government has little interference with enterprises. Jianhua has never seen people from local government departments interfere for no reason after building a factory in Vietnam. As long as all things in Vietnam are legally and legally licensed, the enterprises themselves are responsible for everything. Enterprises themselves should take responsibility for everything. After the factory is built, tax value should be determined. Vietnamese land is owned by the state, and citizens have the right to use it permanently. Vietnamese folkway is simple, very polite, polite, respect the old and love the young. Vietnam's politics are relatively stable, and its economic activities, society and humanities are very similar to those of China. Since 2012, the marketing revenue of Jianhua Diyue Company has increased every year. The rapid growth period began in 2015, and this year's growth rate is greater than last year's. Because the pile foundation industry has a direct relationship with Vietnam's investment and infrastructure. In China, the main target customers of JHF are real estate projects, accounting for 60% ~ 70%, while the real estate projects of JHF in Vietnam only account for 10%, which are basically plant construction projects, different from the domestic pipe pile application field, which also reflects the economic development of Vietnam.
Vietnam's demographic dividend in terms of labor is at least a decade away. The age structure of its population is relatively young, and most of the workers are under 35 years old. Now the per capita wage of enterprises is equivalent to about 2000 yuan, which is not very attractive. The annual wage growth rate is at least 10%, and the wage in the south of Vietnam is more than 30% higher than that in the north. Enterprises had better seize the opportunity of the rapid development of the Vietnamese market to go out.
The Vietnamese government supervises enterprises mainly through the tax Bureau, environmental protection, labor supervision and other functional departments. After the Formosa Plastics incident, Vietnam's control over environmental protection has become more stringent. Labor supervision departments are very strict with foreign investors, and the wages of employees in enterprises at night are 30% higher than those during the day, and food is distributed to special posts. Jianhua is an enterprise that takes the right path. It always believes that enterprises, products and people should be a trinity, so as to achieve the highest level of people-oriented and inaction. The company buys insurance for employees in strict accordance with Vietnamese regulations, and guarantees workers to have physical examinations twice a year.
Chinese enterprises should go out more. This is a trend. It is better to go out early than to go late. In the future, the requirements of Southeast Asian countries are getting higher and higher. In the past, as long as the government invests, it is very welcome. Now the government has to select projects with low technology content. Chinese enterprises should seize the time to adapt to the opportunities of the Belt and Road and go out, especially those related to infrastructure construction. Nowadays, Jianhua Building Materials has determined the development direction of internationalization, paid more attention to overseas development market, and successively inspected Malaysia, India and other markets. We will not do the earliest stage of the market, but we must intervene in the stage of market development.
Dealing with the Vietnamese government is very simple, as long as the quality and quantity of products are guaranteed to meet customer needs. Now, the quality of Jianhua products is highly recognized by peers. The main platform for foreign exchanges of Jianhua Diyue Company is the Chamber of Commerce of Chinese Enterprises, and Wu Guhai is currently the vice president of the Coastal Defense Branch of the Chamber of Commerce of Chinese Enterprises in Vietnam. The state encourages foreign Chinese-funded enterprises to join the Chinese Chamber of Commerce, and does not want Chinese-funded enterprises to be scattered outside. Some interests of Chinese-funded enterprises abroad can also be protected through the Chamber of Commerce, so the Chamber of Commerce platform plays a vital role. Jianhua uses the platform of the Chamber of Commerce to maintain a good communication relationship with the Chinese Embassy in Vietnam, which also plays a very good role in protecting the interests of enterprises.
Jianhua has always insisted on regular operation and paid taxes in accordance with the law in Vietnam. In 2014, Hu Ganwen, Chinese Ambassador to Vietnam, expressed great appreciation for Jianhua's corporate philosophy when he visited Jianhua Diyue Company. "Many Chinese enterprises blindly pursue immediate interests after going out, which damages the national image and the corporate image of China.". Jianhua's pile foundation products are invisible underground, but Jianhua always insists on quality and quantity, and the century-old plan is based on quality. Ambassador Hu highly agreed with Jianhua's business philosophy, "We are not going to make some money, but to have long-term development goals and operate in accordance with the law.". Chinese enterprises should advocate the concept of Jianhua, and don't just think about making some money and run away after going out.
The reputation of Jianhua Diyue Company in the Vietnamese industry is getting better and better. As a representative of outstanding Chinese-funded enterprises in Vietnam, Wu Guhai, on behalf of Jianhua Building Materials Company, was honored to receive President Xi Jinping.
In addition to the expansion of the international industry, Jianhua Building Materials is actively building a platform for capacity cooperation, and has reached cooperation with large Chinese-funded companies such as Shenzhen Zhongjian Southern Construction Group Co., Ltd., Shenyue Joint Investment Co., Ltd., and Gree Air Conditioning (Vietnam) Co., Ltd. to participate in the construction of the "the Belt and Road" country and work together to "go to sea".
Moreover, Jianhua Building Materials has reached strategic cooperation with Vietnam's Chamber of Commerce of Chinese Enterprises, jointly exploring and innovating industrial integration, complementing each other's advantages, integrating many resources through good cooperation and interaction, and jointly playing a "combination punch" in many areas of international capacity cooperation.
In the future, Jianhua Building Materials will establish a production capacity cooperation platform mechanism with relevant overseas investment destination countries, provide a package of services such as product manufacturing, technology processing and cooperative operation, and focus on promoting the landing of China's advanced pile foundation manufacturing industry, new service industry, superior processing industry and other projects overseas. At the same time, it uses its own comprehensive service development capabilities to provide high-standard integrated infrastructure services and provide comprehensive solutions.
With the comprehensive promotion of overseas strategy, Jianhua Building Materials will continue to accelerate the layout of emerging regions in the global economy, give full play to its advantages in industrial manufacturing, development and operation, vigorously integrate industrial resources, further release the platform aggregation effect, and help the region achieve industrial transformation and upgrading and high-quality sustainable economic development.
Real estate, factories, railways, airports, hydraulic engineering.. Facing the future, the international journey of Jianhua Building Materials is setting sail.
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