Importation helps Secoin

Although the statistics of the Ministry of Construction shows that the real estate market last year were recorded a strong transaction volume with over 11,000 apartments in Hanoi, 10,000 apartments in Ho Chi Minh City in all segments, but according to Nguyen Van Duc, Deputy Director of Dat Lanh Real Estate Company, this excitement has not reflect the overall market. The high and ultra –high price projects (above 40 millions / m2) were fairly quiet. More importantly, Ho Chi Minh City has over 900 real estate projects "estate", which 200 projects are extracted their licenses, 700 projects are "covering projection" loans worth hundreds of thousands of billions . These are tendencies of bankruptcy and insolvency of many companies in the industry.

With the assessment of the real estate market and building materials industry, Mr. Ky, said that consumption market of building materials is quite weak due to no clear planning.

Another problem is oversupply. Previously, the cement industry had been scarce to be transported from north to south for sale at high prices. Then, the Ministry of Construction increasingly invested and within 3 years there was the excessive cement. "Vietnamese markets is missing everything, but investing in no right plan causes surplus soon", Mr. Ky commented.

When the domestic consumer market is unstable, exporting is a business strategy of building materials target to. And the highest leaders of Secoin saw this for a long time ago.

45 international markets

In the context of many companies building materials falling into the predicament, Secoin revenue growth remains steady at 20-25% per year. In particular, the rate of exportation in 2014 was 72.5%. This is the highest level in Secoin’s 25 year operating. "If not going abroad, the company cannot develop like today," Mr. Ky said.

In 1995, from Poland, Mr. Ky went back and was the official Director of Secoin Vietnam. Realizing that most building materials in Vietnam are burnt tiles while in Europe, there was up to 90% using non-burnt tiles, he decided to focus on the research and production of non-burnt building materials in Vietnam.

Two years later, Secoin started transferring technology to the 50 non-burnt factories in the country and purchase tile factory of Japan (1999) to build a factory Secoin Hatay. In 2001, the company continued to repurchase the tile factory Contrexim (the Ministry of Construction), turned into Secoin Xuan Mai. Then he invested in another 2 new factories named Secoin Hung Yen, and then took over 2 tiles factories Thanh Danh (2009) which was almost bankrupt to turn into Secoin Binh Chanh and Binh Duong factories. IN recent, the company is operating the Secoin Da Nang factory to increase production capacity in the country with 10 product lines of non-burnt building materials.

Do not disclose the production capacity, but Mr. Ky insisted that Secoin is the top of the non-burnt tile manufacturing enterprise in domestic and will continue to implement long-term strategy is expanding to overseas. "The domestic market seems to be large but small, densely populated but low purchasing power. And exporting is safe and effective for finance when bad debt in construction in Vietnam remains serious” Mr. Ky shared.

Secoin products are available in 45 countries across the 5 continents. Of these, the most difficult market is Japan because the customers often require high quality, including cultural behavior in business and perseverance in negotiations.

Secoin in guest lands

Penetrating the Japanese market since 1999, currently 30% of the construction materials in Japan's outdoor is Secoin terrazzo. The company is accounted for over 85% of market shares in Israel tiles; Secoin pool tiles were presented in the five states of Australia; and 80% of the tile brand in Europe by Secoin production.

Export Strategy of Secoin is successful based on awareness concentration. Mr. Ky stated that for being successful in overseas, the businesses need to understand what customers want, what we have; and to produce the products the customers need, not what you can do.

Setting up distribution channels is also equally important. According to Mr. Ky, there is the market only taking 2 days to select distributors, but some nations taking 3 years for product testing process is very strict from the local partners.

"Previously, a distributor from the UK come to a factory in Vietnam check the Secoin product is Secoin recycled or not, how packaging was, paying is enough or not for workers to live, how labor protection is, use child labor or not, how the waste water treatment is ... It means when Secoin has entered the international market, we must abide the general rules of the game ", the Secoin representative included.

In addition, a secret of the company to achieve stability in foreign countries is not so dependent on a few markets. The lesson drawn by Mr. Ky States should be exporting focus, but diversity in the market. "For example, while sales are in Europe fell, they are better than in Australia, and the Middle East is up but Europe is down. Market diversification will help the company at low risk, “he said.

Besides, the legal status of foreign markets is always clear to represent Secoin so that trying not to do anything "sensitive" is safe for the businesses. Another lesson is Secoin and its partners build value chain that tightly linked from the manufacturer to the end users, including warehousing, distribution, retail chains and design consultancy...

In the first days of spring, Secoin leader said he is nursing ambitions after exporting is stable and sustainable development, the company will gradually build its own brand in the foreign market. However, this is a big step over generations and absolutely not simple. Convincing international customers to accept a foreign brand from Vietnam is still very difficult.

Be in thinking, but Mr. Ky still showed determination. "It's hard, but needs to do. SCG has ever offered to buy 60% of Secoin stocks but I refused. I always insist that Secoin is Vietnamese company and branding our products from Vietnam. Someday, this brand will continue to finish the mission to bring the bell to go overseas, “he seriously stated.