Thu Duc EMC: Without “startup”, there is no success
The name of Thu Duc EMC has been deeply integrated into the consumer behaviour of Vietnamese people. This is both pride but also a great pressure for the enterprise. Below are shares of Mr. Nguyen Minh Quang – Chairman of the Board of Directors of the Company with a reporter of Industry and Trade Magazine.
- Reporter: Could you tell us your feelings when accompanying EMC to overcome the difficulties in the past?
Mr. Quang: The first thing to say, the reputation of the Company was formed and built from the efforts of many generations of leaders and employees through many stages since being a state enterprise. With the responsibility of a successor, we must preserve and develop EMC’s reputation to always maintain a certain position in the field of business – manufacturing Electrical equipment, promoting the traditional strengths of the company; also in order to maintain the lives of many workers, employees’ families have for many years worked with the Company.
Next, there is a very proud feeling because the EMC is highly appreciated by customers, but with it is the anxiety, how to preserve the brand’s reputation, because losing trust is losing all. This is also the thoughts of the leaders and staff of the Company over the years.
- Reporter: Surely there is a lot of pressure, right? because Thu Duc EMC’s reputation has been deeply integrated into the consumer behaviour of Vietnamese people for so long?
Mr. Quang: That’s right. The core thing to keep the Company’s reputation – brand in the mind of many customers, especially customers in the electricity industry, we have to constantly improve the management level and product quality. the factory must be technically stable; must always know to keep the word “credibility” with customers. Products produced by EMC have a direct relationship to the daily life and daily life of every citizen, every family, so if the MBA has a problem, how will people react to the electricity industry? With companies selling MBA products like EMC?
Because most products shipped to customers by the company must have a 5-year warranty period, so EMC always has to research and invest in science and technology, and train technical & design staff, skilled workers to ensure the quality of products produced by the factory to reach high technical standards; At the same time, we must always research and develop many models, many types of products to meet the usage requirements of many industrial customers at competitive prices.
The next stressful problem is finding output markets. Currently, for the types of products manufactured by EMC Company, there are many domestic and foreign companies in Vietnam that can be produced, their prices are very competitive and their designs are plentiful. Therefore, if the Company itself does not work hard to research in many ways to develop market share and develop brand name, it will be difficult to survive in the market of trading and manufacturing electrical equipment in Vietnam.
- Reporter: Could you tell us about the restructuring situation of Thu Duc EMC? What are the advantages and disadvantages of Thu Duc EMC compared to other businesses?
After equitization in early 2008 up to now, EMC has undergone three phases of restructuring, renewing management model and working methods: First, when the State still holds dominant shares; Second is when the State no longer holds dominant shares. Third, from March 2018 up to now, the State has completely divested.
There are certain advantages and disadvantages in each stage of equitization. For example, when EMC operates as a company with state capital, the company’s leadership is less likely to worry about the output of the products, they just need to focus on doing well in organizing. As a company in the electricity industry, there are a number of tasks that are almost done under the mechanism of appointing contractors, limited bidding or assigning tasks because there are not many domestic companies producing electrical equipment items such as EMC. In general, it accidentally makes the Company lack creative & dynamism in doing business, producing, and marketing. On the contrary, due to the specific characteristics of a mechanical manufacturing enterprise, the employee’s income is not high, the annual business profit of the company is low, so the level of capital for reinvestment, innovation of the technology line is somewhat limited, therefore, productivity is also affected.
But now it is different, there are many private companies making products such as EMC, the government’s open bidding mechanism is getting stricter in terms of technical standards and bidding prices.
Currently, after more than 2 years since the state stopped contributing capital in EMC, the field seems to be much more open, many financial mechanisms are open because we are a private company. Company leaders – The Board of Directors make decisions on investmenting, innovating technology very quickly, including the arrangement and renewal of human resources, in the direction of streamlining and efficiency. Getting rid of the thought “come to the Company everyday just to do one task and do the assigned task only”. Everyone is now proactive, dynamic, and know how to do many things … to meet all requirements of customers.
It can be said that changing the production and business model from the time it was a state company to a private joint stock company is not simple when starting from small things. Leaders and employees almost have to “restart” everything in the applied culture, workplace culture … If everyone integrates well, the company has much better development conditions, vice versa. , then everything is about to return to “zero”.
- Reporter: Could you tell us about the investment plan for science and technology in Thu Duc EMC? With the huge budget due to the characteristics of the mechanical engineering industry, how did you solve the capital problem?
Mr. Quang: In the upcoming directions of EMC, we still focus on investing in more modern production equipment and machines, automating the stages to improve productivity and quality. Factory products must have uniform specifications.
In addition, building a clean and spacious working environment and working conditions in the Company, meeting ISO 14001 standards and product quality management according to ISO 9001: 2015 that the Company has been certified.
In terms of capital, it is expected that in the coming time, it will continue to call for external investment, issue shares to increase capital to invest in more production machinery; cooperate in training science and technology, transferring technology with foreign countries so that EMC will soon carry out the production of quality products meeting international standards, maintain the traditional domestic market, and proceed to export abroad.