Forbes Vietnam: “Trung Hau has brought the EPC service to the international market”.

Within 08 years of establishment and development, Trung Hau has become the trustworthy industrial contractor for a number of domestic and oversea projects.

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(From the left side: Mr. Hoang Ngoc Minh Toan – Deputy General Director; Mr. Vo Dai Khoi – Founder & Chairman; Mr. Ryoo Hyun Kuk –     Co-founder & Vice-Chairman at APP factory, High-Tech Saigon Park)

In the middle of October, in the manufacturing workshop of Auremumaex Precision Plastics factory (APP), a group of workers was assembling the device. A few steps away, the other team was coating the LCD TV plastic back cover. Right behind this workshop area, Trung Hau construction workers were building the second factory. APP (Malaysia) who specilizes in manufacturing TV screen and plastic back cover for LCD TV and LED has recently got the investment permit on Jan 7th 2016 in Saigon High-Tech Park. APP’s factory complex is still under construction but it has already been used partly for manufacturing activities. “Samsung’s supervisor comes to check the construction progress every hour.” – said the Site Manager of Trung Hau.

Locating on 1,3 hectare area, Auremumaex was invested 21 millions US dollar to support Samsung’s  2-billion-dollar project in Vietnam. Trung Hau signed the contract with APP on Jan 8th 2016 right after APP got the investment permit. This eight-year-old medium-sized company achieved 700 billion VND in 2015 revenue with near 40 projects across the country. Trung Hau also delivers the Design and Construction services to projects in Papua New Guinea, Myanmar and Indonesia. “The foreign investment, especially from South Korea, will continue in the coming years. We aims to gain these opportunities.” said Mr. Vo Dai Khoi the Founder and Chairman of Trung Hau while standing in front of APP factory of Samsung.

Trung Hau focuses on the Industrial Construction which depends on the growth of investment and manufacturing expansion of domestic and foreign firms. Therefore, the industrial construction is affected by Vietnam economic health and foreign direct investment flow. FDI in Vietnam has mainly flowed into manufacturing sector. Within recent 3 years, FDI from Korean has grown in Vietnam with many billion dollar projects from Samsung, LG, Lotte, etc. These long-term projects creates many supporting firms to come in Vietnam. “We focuses on 3-5 million US dollar industrial construction project.” – said the Chairman of Trung Hau.

“Our competitive advantage is the full-package services.” Mr. Khoi said. Understanding the time pressure which the supporting firms of Samsung or LG often meet, Trung Hau offers the full-package service of the engineer procurement and construction to ensure the construction progress, quality and completion to hand over to the client. APP factory fully operated in June 2016.

Mastering on the procedure and process of local authorities as well as the market insight, having good relationship with other contractors and suppliers, Trung Hau standardizes the procedure from time to time when working with South Korea and European clients. “To a construction company, the procedure and structure is important. Our system is quite complete so that we can support the foreign companies with different solutions in order for them to quickly start manufaturing.” said Mr. Ryoo Hyun Kuk – the Co-Founder and Vice-Chairman. Trung Hau also provide the 5-year-warranty policy for clients. “The maintainance fee, normally, is around 0.5% of  the total project price. We consider it the marketing fee.” – Mr. Khoi explains.

Regarding the transformation of Trung Hau into a 6-company-member group, Mr. Khoi shared: “Construction is cycical so that we aims to keep the company at medium size and expand the business into different company members which are based on the actual development strategy.” Mr. Khoi believes that honesty – unity – humanity is the keys to run the business in the long term. “Our finance system and policy is transparent so that the client, the partner and staff keep trusting and going with us.”

In the construction industry, the big-sized projects often go to big brand names such Coteccons, Hoa Binh, Lilama. The 100-200 billion VND projects are the best place for SME construction companies to compete. “The South Korean-invested companies are 200 in HCMC.” Delivering the service at a competitive price with commitment on time and quality, Trung Hau aims to develop with foreign projects within the next 5 – 10 years. Recently Trung Hau completed the Pungkook Indonesia project in June 2016. After this 8-million-dollar project, Trung Hau continues to come to Myanmar for a new one which the company’s engineers just visited to do the survey.

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With only 60 millions VND in 2008 at an office in Ky Dong Street, District 3, HCMC, Mr. Khoi founded the company with the biggest asset which is the experiennces of managing 40 industrial and infrastructure projects and good relationships with suppliers. Mr. Khoi met Mr. Ryoo during this time when Mr. Ryoo was the Project Director of another construction company. They had lead Trung Hau overcome the difficult time of 2011 – 2012 when Vietnam economic went down and the construction industry nearly stood still. During that time, they heard about an European client who were going to build a new factory in Vietnam. After meeting the client to talk about the procument and construction service of Trung Hau, Mr. Khoi won the project – VOL ACOM Gia Lai cafe factory. This project brought back 40 billions to Trung Hau and opened opportunities to work with the European client. “They also assigned us to design the factory in Papur New Guinea.” – said Mr. Ryoo.

When transforming the company in to a 6-member group, Mr. Khoi invited Mr. Hoang Ngoc Minh Toan, who was the Deputy General Director of Orient Commercial Bank, to join Trung Hau as the Deputy General Director. “Trung Hau’s way to growth is not only up to me, but also all my team.” Mr. Khoi said.

The company established Trung Hau Academy to train all staff members and prepare human resources in order to become the leading in quality EPC contractor in ASEAN in the upcoming 10 years and more. “We have a training session every weekend.” Mr. Ryoo said. “We also prepare by joining foreign investment promotion activities in Vietnam. We supported the 45 Busan entrepreneurs to visit Ho Chi Minh City for business opportunities in October 2016.” Mr. Khoi shared with Forbes Vietnam.

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FORBES VIETNAM NO.42