Dear Sir, thank you for accepting the interview during this busy Lunar New Year period. At the opening ceremony of Land Rover Vietnam’s new showroom in Hanoi, you revealed that you have “completed negotiations with partners and plan to announce additional car brands in the next 3 to 5 years”. Could you share more details about this plan?
Hello. First of all, I must say that the demand for cars in the Vietnamese market, especially luxury cars, is increasing. Currently, the mainstream car market, which includes mass-produced cars, already has many big names. As for luxury cars, there are stricter requirements and demands. Phu Thai Mobility will focus on luxury car brands.
Firstly, we are distributing Land Rover and Jaguar. Afterwards, there will be other brands prepared for joint ventures and distribution, and our orientation will continue to focus on other luxury car brands.
2023 was a difficult year for the overall market and the automotive industry in particular. Many experts still forecast that there will continue to be fluctuations and difficulties in the economy in 2024. What is the basis for you and Phu Thai Mobility to expand your business in the automotive industry like this?
When investing and expanding with partners, we think in the long term.
Of course, in the short term it is difficult. We all know that the sales of the entire automotive market in Vietnam decreased by about 30% in 2023.
However, in some luxury car brands, for example Land Rover, we did not experience as much decline in sales. Although sales did not increase, they remained stable. This also signals that the demand for luxury cars in the market is still sustained. Based on that, we intend to focus more on luxury car brands.
Previously, the story “Caterpillar definitely signs a contract with the individual, not with Phu Thai Corporation, because they trust the individual business owner” was very famous. Does this repeat when you negotiate with other partners, especially in the automotive sector?
In my opinion, not only in my case with Caterpillar, but most major dealerships worldwide sign contracts from a personal perspective, as private individuals.
From that, it can be seen that the role of individuals in a business is very important. Partners want to find people with strategic thinking, culture, or a great similarity in vision with the brands. Overall, I think these are common criteria for entrepreneurs.
In an era of high integration and globalization like today, we need to have a very professional working perspective, transparency, honesty, and a win-win vision, with a “long-term” view. These factors will create a generation of more principled entrepreneurs. Foreign companies are eager to cooperate with such entrepreneurs. They aim to do business correctly, legally, and sustainably…
You mentioned the “long-term” factor. In previous discussions, you also never mentioned the need for speed, but that one must proceed systematically, patiently, and wait for opportunities. Whether this opportunity is now, sir?
When working with large corporations worldwide, I learned to consider “PnL”, which is profit and loss, not in 1 year, 3 years, or 5 years, but in the long run. What I want to say here is not about a very long period, but at least they should consider whether this investment, cooperation, or business operation can achieve the long-term goals of the company.
I believe that when you rush, you will not have the “fundamentals” or a solid foundation. Most people who rush often encounter problems during the process.
In general, everyone wants to be fast. We also want speed. However, the prerequisite is that we must have a solid foundation in terms of people, finances, and many other things in order for the business to develop sustainably.
There is a saying of yours that I feel is very resonant. It is “success must start with big dreams.” So, how will those big dreams for the Vietnamese automotive industry in general, Land Rover, and the other brands that Phu Thai Mobility will distribute specifically come true?
The name Phu Thai Mobility itself partly represents our big dreams. We want it to be about movement, not just limited to cars. We will be involved in other forms of transportation. It could be cars, motorcycles, e-bikes, or any other means of transportation. Of course, we will have step-by-step plans for expansion. Those plans must adapt to market needs at the right time.
As for Land Rover, as you can see in this showroom, it was built to the most modern format in the world. Vietnam is the first country to achieve this. Many Land Rover experts and architects have come and appreciated the determination of the Vietnamese people, demonstrating to surrounding countries a typical example of building such a humanistic showroom.
Earlier, you mentioned the “win-win” factor. In the Land Rover Vietnam context, and more broadly, the other brands that you and Phu Thai Mobility will target, how does this happen?
When orienting our business, we aim, first and foremost, to comply with the law and how to provide the best services to customers.
There are many business models that we have made great efforts to convince partners to come to Vietnam. It may take 3 years or 4 years for them to enter. I see that this type of business is very beneficial for Vietnam. For example, partners have deployed their laundry system in hospitals or the largest hotel in Japan. They did not intend to come to Vietnam, but I spent 3 years persuading them, bringing this technology to the country because I saw that it was good for the health of the Vietnamese people.
In short, we always believe that sustainable development must be associated with the interests of society. Our development must go hand in hand with the country’s economy.
With Phu Thai, it is also absolute transparency, a high level of legal compliance, and all Phu Thai companies undergo audits by the Big 4. Only with that can we maintain the trust of partners.
Specifically, such as Land Rover, I am not sure about their previous partners, but when working with Phu Thai Mobility, everything must be very clear, whether it is import, distribution, or sales, 100% compliance with Vietnamese law, especially tax payment.
We are proud that Phu Thai Cat [a member company of Phu Thai Group] is one of the top 1,000 largest taxpayers in Vietnam. That is a contribution to the country and society.
Your journey of entrepreneurship will definitely be a great inspiration for young people today. To talk about your path to success, it would probably be a very long story because you have gone through many ups and downs. But to talk about the main milestones in your career, according to you, what are the memorable things in that journey?
Since the start of my entrepreneurship, I never imagined that my business would become this big. My dream after graduating from the University of Engineering and Technology was to work for a government agency and then start a business, hoping to make a million dollars someday. It is clear that a business always starts with small goals, and then gradually strives to reach higher goals.
To imagine the $1 million figure back then, I will give this example. In 1994, I had about $3,600 in hand. At that time, I thought $10,000 was already a lot. $1 million was a very large amount. In that context, if I had $1 million, I might have had enough, only spending a little each month, so when would it ever run out.
I had a conversation with Mr. Truong Gia Binh at FPT that in the past, we always dreamed of having a few million dollars for software exports. Now, FPT has exported billions of dollars in software and it is still not enough.
There is a saying, “What will be, will be.” I try to develop and improve, then gradually, a certain goal will be achieved.
Of course, the path of starting a business and building a large enterprise is not as simple as that. There are many times when businesses face difficulties. Not preparing well in terms of finance, having an imbalanced cash flow will be a major challenge for many Vietnamese businesses today. That is, not having a good CFO, not having a good cash flow plan, but having ambition and breaking through when there is not enough money or an economic crisis occurs can easily lead to serious imbalances. Many businesses go bankrupt because of that.
That is a lesson for later, especially at the present time when competition is extremely high. That competition can be between companies, between people, between robots, between technology, and many other major waves of competition. I think not only my business but other Vietnamese businesses should be cautious.
At that time, $1 million was the dream. At the present time, what number comes to your mind, sir?
At the moment, I hope that I can become a billionaire like many Western billionaires, meaning a businessperson, intellectual, who works transparently, complies with the law, and is a billionaire.
As you once remarked, and I also agree with that notion: “If life is compared to the game ‘Journey to the Olympia Summit’, then each stage of life will be divided into different phases: at 25 years old, it will be like the “Warm-up” step, 30 years old will be the “Overcoming obstacles” phase, which is a difficult phase of accumulating experience, at 40 years old, it will be the “Acceleration” phase, at 50 years old, it will be the “Finishing” phase, and at 60 years old, it will be the “Transition” phase. So, how will this transition go for you?
For foreign companies, they are also very cautious when I reach the age of 60, and they will immediately ask how well I have planned the transition and who will be the successor.
By that time, I had introduced my eldest son. They requested that I bring my son to the United States to meet, connect, and even introduce him to the Chairman of the corporation there. Previously, my grandson also studied in the United States for a long time. When I took him there, he interacted with the Regional Director, the Vice President of the company, as well as the CEOs and Chairmen, and had dinner with them. After talking, they said, “He is suitable.” Before making a fitting decision, they had also thoroughly assessed the person.
At the age of 60, I have to plan for my succession. Maybe it will take 10 more years for the transition to take place, but it doesn’t matter, their partners don’t care about that. They just need to know that I have made plans, who the successor is, and if necessary, they will bring him to the US to work, train to ensure a smooth transition after that.
I apologize if this question is a bit personal. In many families, parents work in one field, but their children do not like that field. Has this happened in your family? How do you know if your children are suitable for this transition?
Currently, I am also the Chairman of the Vietnam Family Business Council, and I see that other large family businesses are currently facing challenges in terms of transition.
There is always a generation gap. To decide whether the transition is successful or not, there must be a common voice from both the F1 and F2 generations. Therefore, I always try to be in harmony with my children, treat them as friends, respect them, and gradually guide them in their careers. For example, my youngest daughter used to have different directions, but gradually, through talking, sharing, and befriending, she is now following my path. The transition may not be a one-time event, it may take 10 years or 15 years…
In your position, as you once said, you must overcome difficulties, take care of many details, understand every detail of the business. Now, at the time of the next generation, people often use phrases like “surpassing pleasure” or “born from the finish line”. According to you, does that affect the will of the younger generation?
Take this example, in the past, I had to walk from the field up to the riverbank, but now, my business is no longer on the riverbank but on the hilltop, so I want the next generation to climb from the hill to the top of the mountain. That means their vision, thinking, and plans must be at a higher level.
I don’t force the next generation to start from small things like me. The transition or succession of businesses or succession training for young people will be different for those who have resources. For those who have resources, they have to think about how to turn the business from millions to billions. If there are no resources, they can still be successful by following a different path. Different missions will require different types of training. The important thing is that they have respect, and I have to have a training plan. As I can see, many billionaire families in other countries are still very successful when transferring to the next generation in a very systematic way.
It should also be added that family businesses that handle the succession themselves may not necessarily succeed. There are large consulting firms. They will advise you or coach and mentor the younger generation to ensure the best succession.
It must also be said that family businesses sometimes face difficulties in terms of succession. Therefore, it is necessary to have a roadmap, a professional transition program. If there is a person in charge of this work in the family, it is sometimes not successful. So there are large consulting companies worldwide that specialize in family business succession, and they are highly appreciated.
Thank you for sharing. I wish your plans and aspirations success in the coming year and in the years to come.
