Van Laack established its presence in Vietnam in 1993 when the country was still a new market to foreign investors, as the trade embargo was still being imposed. This was considered a bold and risky decision. But, after more than 20 years, Van Laack has proven its correct direction and affirmed its pioneering calibre. Vietnam Business Forum has an exclusive interview with Ms Kim Thu Huong, Director of Van Laack Asia Co., Ltd, to learn more about this issue. Nguyet Tham reports.Why did Van Laack enter Vietnam?
When making the investment decision on Vietnam, Van Laack’s leaders had seen market potential here. Although the Vietnamese market was very nascent and the trade embargo was not yet lifted at that time, Van Laack’s leaders soon saw that the Government of Vietnam was very open and Vietnamese people were very friendly, hardworking and progressive. Based on these grounds, Van Laack decided to make investment in Vietnam.
Many FDI companies doing business in Vietnam share the common remark: Investment in business and production activities in Vietnam is fairly challenging, ranging from administrative procedures to infrastructure, logistics system and professional skills among others. How about Van Laack Asia?
In reality, doing business in Vietnam involves a lot of difficulties, ranging from administrative procedures to infrastructure, logistics systems and professional skills, particularly in the early 1990s. And, Van Laack was no exception.
After more than two decades doing business in Vietnam, I see that the Government of Vietnam has made much effort to improve the investment environment and brought significant changes. However, to integrate into the world, create a better reputation with foreign investors and attract more German investors, the Government of Vietnam must add investment for infrastructure, improve legal, tax and customs policies, and raise the quality of human resources, especially technical and high-tech personnel, because administrative costs, transportation costs and labour productivity, and other elements constitute product costs and determine the success of every business.
Would you be kind enough to tell us the key export markets of Van Laack Vietnam and customers Van Laack targets?
Van Laack is a global brand name with a more than 135-year history. Van Laack Vietnam is one of major production bases owned by Van Laack Group. Our major products are men’s and ladies’ shirts. Target customers are business owners.
Van Laack’s main market is Europe, including Germany, Belgium, Austria and Switzerland. Currently, Australia is the second market of Van Laack after Europe. Besides, the Group is present in the United States, Singapore, India, Malaysia and India. In late 2013, we opened more companies to introduce products to customers in Vietnam. Thus, Van Laack has succeeded in diversifying markets and increasing sales.
As an apparel expert and a famous apparel business leader, what do you think about Vietnam’s development prospects in this field?
The Vietnamese apparel industry is making enormous strides in the right direction and bringing a huge value for the country. Apparel companies have focused more on raising product quality, improving working environment, enhancing productivity and diversifying designs to compete with foreign rivals. However, Vietnam is primarily an offshore outsourcer for foreign companies as it lacks input materials, technological prowess and qualified human resources. Therefore, the country needs to take the initiative on input sources and improve human resource quality soon. Besides, it needs to focus on quality-based competition rather than volume-based competition to generate higher value in production. Then, Vietnam will surely have a better position on international markets and attract long-term customers.
What should Vietnam and Germany do to enhance their investment and trade ties?
The friendly relations between Vietnam and Germany have been enriched since the two set up ties in the 1950s. Their relationship has grown well ever since. The bilateral ties are expected to further thrive after many agreements are signed in late 2014, including FTAs. Functioning as a bridge for their business communities, the two Governments need to strengthen their cooperation to build appropriate legal frameworks for their companies to do business.
For its part, the Government of Vietnam must continue reforming administrative procedures and creating a sustainable, stable and transparent legal framework. It also needs to add investment for vocational education infrastructure. The Government of Germany and the Government of Vietnam signed many agreements on vocational training support, school opening and human resource improvement for Vietnam. This is a good opportunity for Vietnam and it should take advantage of this to make intensive investment, along with its right policies, to build a highly qualified workforce.
As for the German side, German firms should boldly invest in Vietnam if they find it right. In my opinion, earlier comers usually find better opportunities, and Van Laack is clear-cut evidence of this. More than 20 years ago when no other companies dared to invest in Vietnam, we made the right decision and affirmed its correctness. Van Laack is willing to share its experiences and challenges with German firms when they invest in Vietnam.
Đăng ký: VietNam News
