“High-Growth Startup Facilitating FDI Businesses and Ethnic Minority Workers Secures 300 Billion VND Investment from Shark Hung: A 7X Revenue Growth in 3 Years with Aims to Double It to 1.2 Trillion VND in 2024”

The issue of unemployment in highland areas is a significant challenge for the economic and social development of these localities. Due to geographical conditions, harsh climate, inadequate infrastructure, and limitations in capital and skills, many people in highland areas, especially young people, lack stable job opportunities.

Addressing this issue, Mr. Nguyen Tuyen Huan – CEO & Founder of Vietnam Manpower Supply and Training JSC has developed and promoted a model to provide labor to FDI enterprises (foreign-invested enterprises) in industrial parks, partially resolving the employment issue for many workers.

Mr. Huan shared:

“Throughout my business journey, I am proud of three things. First, I have brought a prosperous life to many people in the highlands. Second, none of my staff have left. And third, all of our clients continue to partner with us.”

According to the CEO of Vietnam Manpower Supply and Training JSC, the company’s revenue was 9 billion VND in 2021, 65 billion VND in 2023, and is expected to reach 120 billion VND in 2024. Regarding revenue sources, Mr. Huan mentioned that the company’s income comes from two main sources: labor leasing and labor introduction.

The enterprise provides 100% unskilled labor to 97% of its clients, who are FDI enterprises in industrial parks. He also revealed that the company currently has about 1,800 workers and more than 30 clients. With this financial picture and operational status, the Founder aims to raise 2 billion VND for 10% of the company’s shares.

From an investor’s perspective, Shark Minh Beta inquired about the cost calculation for these two services and was particularly interested in the difference between the cost paid to the workers and the amount received from the enterprise’s partners. Mr. Huan provided a detailed explanation, stating:

“The cost calculation depends on the contract with the client. For example, if they rent our workers and pay us by the hour, we will consider factors such as the region where the workers are based, including basic salary, allowances, attendance bonuses, transportation, etc.”

The CEO of the manpower supply company further added that for labor leasing services, the profit margin is around 10-12%. For the startup brokerage service, they charge 10-15% of the worker’s total income for the first 90 days, depending on the actual client. Most of the revenue comes from labor leasing services as they meet the temporary labor needs of factories.

Concerned about the enterprise’s potential for future development, Shark Binh expressed his thoughts:

“As far as I know, factories have been introducing automation quite extensively lately, so the demand for workers seems to be decreasing. Your enterprise still seems quite manual and traditional, and I am unsure about the capital call and its utilization.”

Addressing this concern, the CEO of Vietnam Manpower Supply and Training JSC confidently stated that for at least the next 5-10 years, factories would still require a significant number of workers. He explained that creating machinery capable of performing tasks similar to humans would be much more costly than hiring workers in Vietnam.

Finally, Shark Hung made an offer: 2 billion VND for 30% of the shares. Shark Hung justified his offer based on the company’s valuation:

“The equity capital is 9 billion VND, and the actual contribution is 4 billion VND. So, my offer of 2 billion VND for 30% shares is a fair valuation, with you holding 70%.”

However, the CEO of Vietnam Manpower Supply and Training JSC believed that since the company has been operating for some time and has achieved results, he wanted to negotiate for a share percentage below 20%.

Ultimately, Shark Hung agreed to close the deal with a final agreement of 3 billion VND for 21% of the company’s shares.