A strange business model in Viet Nam

TIN LIÊN QUAN
	ABAC: Three major proposals
	Forum looks to scale up business solutions to sustainability challenges

Talking to CHC Group Chairwoman Do Thi Hoai, people could be “flabbergast” at extremely daring ideas of the firm. Compared to other private groups in Viet Nam at present, CHC Group has its own development strategy that does not copy any existing models.

CHC Group Chairwoman Do Thi Hoai.

While the development of other groups is based on the practice that a parent company sets up subsidiaries or a big business acquires many smaller firms to form a group, CHC Group has its own strategy. With her sharp mindset, experience in doing business since a young age, and the boldness of a daring leader, Do Thi Hoai has developed CHC Group by decentralizing power and responsibility. It means that CHC Group has a corporation – the “central level”, big companies in charge of certain lines of business – the “ministry level”, subsidiaries in charge of multi-sector business lines in all the 63 provinces and cities of Viet Nam, and smaller companies at the district level. The group aims to have about 1,000 affiliates across Viet Nam by 2020.

Do Thi Hoai said: “With their management method, parent companies hold a 51% stake at their subsidiaries that are responsible for operation expenses, losses, profits, and growth… I believe that companies in the CHC Group system will form a solid bloc with a proactive and independent working manner. If they do well, subsidiaries themselves benefit, and if they fail, we have a system of functional units to solve problems, in both economic and legal aspects”.

“CHC Group does business in the “supremacy of transparency” spirit. Our functional businesses such as security, law, tax, finance and communications gather persons skilled at those fields, and they are in charge of monitoring subsidiaries’ activities to ensure that these firms operate in line with the group’s guidelines and purposes,” Do Thi Hoai added.

It is noteworthy that with business experience since a young age – an advantage that few people have, along with her family’s tradition of doing business, Do Thi Hoai has turned CHC Group into a multi-sector conglomerate with nearly 100 member companies.

CHC Group was founded on May 19, 1999. Thanks to non-stop efforts, drastic and prudent steps and concrete strategies, it has grown strongly and confidently with of all of its resources with a view to setting up a system of member companies across Viet Nam and taking firm steps towards the global arena.

Aside from the ambition of building a group with numerous subsidiaries, Do Thi Hoai has long thought about making inroads into major markets around the world. She pays special attention to key markets in the EU and the Asian-Pacific such as Germany, the UK, France, Japan, the Republic of Korea, the U.S., Canada and Brazil.

The businesswoman said: “In a flat world nowadays, nothing is impossible. The development of a solid “centipede-leg-like” system of CHC Group’s subsidiaries in the domestic market will be a firm fulcrum for the CHC Group brand to stretch its reach to global markets”.

“Stretching the reach” is one thing, but the root of CHC Group’s strength is still the principle of honesty and the interest of clients and the society above the firm’s profit, Hoai noted. CHC Paint is an example. It is one of the profitable business lines of CHC Group. While the paint market in Viet Nam is now in a crisis of quality and origin trust, CHC Paint buyers can trace the origin of paint products they purchase just by scanning QR codes on the labels.

“I think it’s strange that such a simple thing, which is to assert quality and consolidate customers’ trust, has been done by only CHC Paint so far. I believe that with such a truly responsible and transparent manner, there will be no reasons for CHC Group to fail to develop sustainably in the domestic market and stretch its reach to the region, as well as the world”, Do Thi Hoai affirmed.

CEO Do Thi Hoai received the Viet Nam’s Innovation and Quality Business Award. CORE VALUES CREDIBILITY CHC Group puts CREDIBILITY on the top position, considers CREDIBILITY as a weapon in competition, and protects CREDIBILITY like it protects its honour. CHC Group always strives to gear up sufficient implementation capacity and makes efforts to meet its commitments to clients and partners as good as possible, particularly commitments relevant to product and service quality and implementation progress. MORALITY CHC Group considers MORALITY as one of the important business foundations. It has adhered to law and professional and social morality at its best. CHC Group respects customers and always gives the top priority to their interest and wishes. The firm has continually made concerted efforts to provide customers with the most perfect products and services as it considers customers’ satisfaction as the measurement of success. CHC Group wholeheartedly cares for customers, is thoroughly aware of the mission of serving customers and only undertakes a task when it knows it is capable of. INTELLIGENCE CHC Group considers creativity as the vitality and a lever for development so as to create different and distinctive values in each product and service. CHC Group prioritizes the spirit of “thinking big, acting bold”, encourages the application of scientific and technical advances and new technologies in management and production, and always proactively innovates and improves the quality of products and services. CHC Group promotes the idea of “learning enterprise”. It is not afraid of difficulties in learning and “overcome itself”. SPEED CHC Group considers “Speed and efficiency of each action” as a principle, and “Quick decision making – Quick investment - Quick implementation - Quick selling - Quick change and adaptation” as one of its identities. CHC Group attaches importance to the aspiration for taking the lead and believes that “Glory belongs to those who finish on schedule”. It lays stress on speed but also keeps in mind that “more haste, less speed”. QUINTESSENCE CHC Group has an aim at gathering quintessential people to create quintessential products and services. All members can benefit from a quintessential life and help to build a quintessential society. CHC Group wants to have lean personnel who have both morality and talent, and each of them excels in their work. CHC Group believes that its system must be like a healthy person without excessive fat. It welcomes skilled people and seeks talents in order to find out suitable personnel and give them appropriate jobs so that they can optimize their abilities.

Deputy PM advocates sustainable business models Deputy Prime Minister Vu Duc Dam held a working session in Ha Noi on October 10 with the Executive Board of the Vietnam Business Council ...

Thai businesses encouraged to invest in Vietnam's central coast A workshop on investment opportunities and potential of Vietnam's central coast was held in Bangkok, Thailand on October 6 with the aim of calling for ...

Vietnam’s women entrepreneurs win APEC BEST awards Two Vietnamese businesswomen won prizes of the second APEC Business Efficiency and Success Target (BEST) Award presented in Hue city on September 27.