Hoa Phat and its start-up stories

Hoa Phat Group has experienced 25 years of ups and downs since its establishment to affirm its firm position both in local and foreign markets. Today, HPG News would like to introduce to readers sharing of Mr. Tran Tuan Duong, Hoa Phat Group’s general director who has built the group since its initial steps when starting a business to the current fruitful achievements.

Cross the border story

The Spring 1993, the first founders of Hoa Phat Group had a market survey after setting up the Spare Part Company Limited

At that time, private companies had been allowed to import and export through the unofficial cross-border trade. It was the reason that the members had to transport by border passport. Up to the mountain, it was a raining day.  They had to crawl to avoid being slippery. They were covered in mud, crossing the border a few kilometres. Those who were unofficial cross-border traders in that time went like that.

Before the trip, the Equipment and Accessories Company Limited mainly bought old things from Russia. This was the first time they went to foreign countries to import goods. The trip was considered as an important change for the company

“Swivel chair” and “the Interior Company” story

In 1994-95 period, the Equipment and Accessories Company Limited sought to buy chairs for their office in Giai Phong Street. It was difficult for them to buy 2 to 3 tables and 50 to 70 chairs. Sellers had to import chairs and tables which were mainly made by wood from Taiwan. Swivel chairs were hard to find at that time.

We thought that this would be a good business opportunity for us. We decided to establish the Hoa Phat Interior Company. In the initial time, we bought from around 30 suppliers from Taiwan, Malaysia and Singapore.

 An interior exhibition in Singapore in 1995-96

“Steel pipe” story

Previously, the the Equipment and Accessories Company Limited had been difficult to buy steel pipe and waiting for a long time to buy 5 to 10 tonnes. We thought that it was not hard to produce steel pipe while we had to wait for a long time to buy the product. We then agreed to make steel pipe.

We were surprised when there is 30 to 40 steel pipe factories in Taiwan but only one in Viet Nam despite Taiwan is smaller than Viet Nam.

Names

The Equipment and Accessories Company Limited was the first established firm of the group in 1992. Hoa Phat means “harmony” and “develop”.

Hoa Phat Interior Joint Stock Company was used to be named as Son Thuy.

Hoa Phat Steel Pipe Company Limited was named Dai Nam Company at the time of establishment as we thought that Hoa Phat is a Vietnamese company.

Mr Tran Dinh Long – chairman of the Hoa Phat Group’s board of directors (second from the right, first row) received the Red Star Young Enterprise 2000

In 2002s, we realised that Hoa Phat was big enough and the importance of the Vietnamese goods with the motto “Vietnamese people use Vietnamese goods”. There are many companies prefer to use foreign names. However, we thought that we should be proud of Vietnamese goods. We therefore rename all of our companies with Hoa Phat. In 2007, Hoa Phat Group Joint Stock Company was established. This has been a totally right decision.

“Difficulties” are also “opportunities”

The Government promulgated the Law on Private Enterprises in 1900. There was nearly no private firms in 1990 because of hesitance of the newly issued law, limited resources and difficult procedures. Hoa Phat was one of first companies which were established after the law in 1992.

It was not easy to set up the first company in 1992. We had to submit application to the Hoàn Kiếm’s Department of Commerce and Industry, proving assets, borrowing money and applying for licences. Our company had to use Mr. Long’s house as our headquarter.

We believed that we would have opportunities in the difficulties. Moreover, businesses had to do right things to strongly develop.

Hoa Phat determines to do the best in each sector. This is our competitiveness advantage.

                                                                                           Minh Chau