Tan Hiep Phat Group shows outstanding efforts

October 17, 2022 | 18:44
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Tan Hiep Phat Group has a 28-year history of establishing and expanding its domestic and international presence in 20 nations and regions. Founder of Tan Hiep Phat Group, general director Tran Qui Thanh, and deputy general director Tran Uyen Phuong told VIR's Hai Yen that the organisation's unity in pursuing its goals is the most important factor in achieving such remarkable growth.

The 28-year growth journey of Tan Hiep Phat was distinguished by many hardships and obstacles, but also by numerous inspiring tales. What are the most memorable and cherished milestones and stories?

Tran Qui Thanh: I totally forgot about it!

How did you achieve the target of making Tan Hiep Phat one of the top businesses in Asia? What difficulties did you anticipate, and what helped you overcome them?

Tran Qui Thanh: To construct a Vietnamese and national brand, I want to establish a vision for Asia. However, adopting lofty objectives is like venturing into the ocean, so you must constantly be prepared to face countless hurdles. What sustains us is the will never to give up, confront hardship to fight, and prevail.

Tan Hiep Phat Group shows outstanding efforts
Tran Qui Thanh, founder of Tan Hiep Phat Group

What challenges do Vietnamese businesses encounter when expanding internationally?

Tran Qui Thanh: When Vietnamese businesses expand internationally to compete with multinational organisations, they must consider three criteria.

The first step is to organise management in a universal style. As a result of our international commerce, we must permit a great deal of authorisation.

The second challenge is selling in several nations and marketplaces, which makes it difficult to please customers with diverse preferences, requirements, and aspirations.

Thirdly, distribution is not straightforward due to the diverse market features. In some major nations, for instance, the market does not have a small local store, so the goods must be sold via the supermarket system, resulting in a separate method of purchasing and selling. Enterprises must have a solid connection with supermarkets since retailers do not always encourage business.

How is Tan Hiep Phat's future generation educated, developed, and fostered? What characteristics do you believe the future team should possess?

Tran Qui Thanh: I believe several components must be included, the first being the courage to think, establish ambitious objectives, and take risks. Simultaneously, I exercise advanced leadership skills, become more autonomous, restrict my assistance to others, and must grow from the ground up, from self-definition to self-development, with rational and independent thought.

How do you feel about corporate governance? What variables contribute to a company's success in this?

Tran Qui Thanh: Corporate governance requires that we manage the business's strategy and team development. Improving customer service must be the focal point of all firms' management strategies. Concurrently, constructing an accurate, transparent, competitive process system and creating human resources to construct a successful team are essential.

Branding is a challenging task. What do you think of focusing on manufacturing when the whole market is focusing on real estate?

Tran Qui Thanh: Entrepreneurship is a game of risk mitigation, and the crucial question is whether you recognise the potential. If you see the chance, you will also see the threat. If you can manage that, then why not?

Are family organisations and private firms playing a greater role in fostering economic growth? How do you see the economic outlook in Vietnam fostering the growth of private enterprises?

Tran Qui Thanh: The business climate in Vietnam is improving; the government has even more measures to encourage and acknowledge the presence of private firms, and the private sector's contribution is also growing. Vietnamese enterprises will build a strong economic structure and establish a brand because they are formed from the spirit.

Has Tan Hiep Phat implemented the circular economy and supported it?

Tran Qui Thanh: For each level, the materials remain essential. For the environment to be sustainable, materials must be transformed from one form to another if the circular economy is to avoid the depletion of resources. We believe that, due to their sluggish rate of decomposition, a lot of businesses must now concentrate on implementing the circular economy, although the circular economy has been in place for a long time for items that are destructive and simple to recycle, such as paper.

With many sectors demanding sophisticated technology, such as polymers, the circular process is becoming more challenging for increasingly valuable items. To ensure a sustainable development environment, we must also participate in a sustainable future with the help of the state and industry.

What would you highlight as the significant moments in Tan Hiep Phat's 28 years in operation?

Tran Uyen Phuong: When it comes to Tan Hiep Phat's growth story, there are several impressions, but the one that stands out most to me is the numerous times the company faced crises and how it conquered them.

Tan Hiep Phat Group shows outstanding efforts
Tran Uyen Phuong, deputy general director, and founder of Tan Hiep Phat and Tran Qui Thanh

I appreciate the recognition and respect from everyone, particularly the officials and workers of the whole firm. They have a great deal of trust in the organisation, and they also inspire and propagate positive ideals. In addition to the high regard of our customers and business partners, it is their faith in us that makes us strong. I think the adage "what does not kill you makes you stronger" is accurate while going through a crisis.

Talking about milestones in Tan Hiep Phat may include development milestones, advancement milestones, and conquering obstacles and obstacles milestones. I would want to discuss the five most significant achievements.

First, it is Tan Hiep Phat's transition from the carbonated water business to the non-carbonated water business.

The second is that the new management paradigm expects everyone to be more rigorous and professional, that all departments are interconnected and influence one another, and that there are no isolated departments.

Thirdly, Tan Hiep Phat is the first firm in Vietnam to integrate the ISO system into a beer manufacturing line successfully (Ben Thanh Beer of the Group is ISO 9001-2000 certified). The consultant at the time said that it was too complicated for the alcohol sector to get ISO certification, and they refused to take the deal. However, Tan Hiep Phat accomplished this, and the consultant became a close friend of the firm.

Tan Hiep Phat's fourth milestone is the release of "Trà Xanh Không Độ" - "Zero Degree Green Tea" items in 2005. The most noteworthy aspect of this product is the development of a packaging plant, especially a factory to create tea bottles—a new manufacturing sector when no one could supply a bottle that could carry tea and only pure water bottles were available. Tan Hiep Phat made a courageous choice.

The fifth breakthrough is the investment in aseptic technology by Tan Hiep Phat. At that time, the staff in charge of production at a significant firm in the world warned Tan Hiep Phat not to undertake it since it was not only costly but also extremely difficult to maintain a sterile atmosphere for the factory to run, and many initiatives in many multinational organisations had failed. A local business like Tan Hiep Phat is hard to replicate. However, Tan Hiep Phat opted to deploy and complete the task.

No one picks the tough tasks, but we feel that if we can do it, it will make a difference and provide the company with a competitive edge. This is what Tan Hiep Phat is attempting to do. In recent years, aseptic technology has gained popularity in European nations. Tan Hiep Phat's strength was its ability to recognise and use emerging technologies to raise the group's goods to new levels.

Tan Hiep Phat has progressed from a local business in Binh Duong province to second among the top 10 beverage companies in Vietnam. What has contributed to the group's long-term success?

Tran Uyen Phuong: Tan Hiep Phat's success results from our constant pursuit of ambition and enthusiasm. The goal is to demonstrate that the Vietnamese are capable. Then there is the system's conformity with the group's vision, purpose, and shared objective.

Your generation, F2, is in charge of the family business. Do you feel any pressure, and how do you manage conflicts with the F1 generation, the founder?

Tran Uyen Phuong: At Tan Hiep Phat, there is no difference between F1 and F2, but all management levels are the same. If there is a dispute, it will involve the capacity to prove and defend one's position. That depends on the capabilities of each individual.

It refers to the connection between parents and children in the family during the F1 and F2 generations. At Tan Hiep Phat, family concerns will be resolved at home, while work-related decisions will be made at the office, as is customary in family-owned businesses.

There are extremely young employees or F3s, but Tan Hiep Phat does not make generational distinctions. Regardless of your position, if you are working and demonstrating your competence, safeguarding your perspective on effectively executing the task, you will be acknowledged.

People frequently link family businesses with unprofessionalism. However, in the case of Tan Hiep Phat, despite being a family business, everything is quite clear and professional. Personally, I consider it a privilege to have my family as coworkers.

The founder's influence is enormous in many companies. How does this apply to Tan Hiep Phat?

Tran Uyen Phuong: The founder's influence is inevitable since they are the organisation's essence and shape its culture and basic beliefs. They are role models for this fundamental virtue. However, the inhabitants of Tan Hiep Phat are not self-deprecating because of the founder's legacy; rather, they are praised and appreciated. Each individual's unique qualities are the result of learning fundamental principles, and at Tan Hiep Phat, an exceptional person is defined as an ordinary person who does an average task in an amazing way. This is the feature that generates culture and talented people. They evolve into their greatest selves.

The group's vitality derives from the commitment of each member.

A strong, creative, and highly productive workforce is necessary for the growth of a company. How has Tan Hiep Phat grown and nurtured the team's vigour?

Tran Uyen Phuong: Identifying the company's vision and mission-aligned core values is the most important basis for training healthy employees. Everyone in the organisation has the same daily objective, which is to generate value via collaboration. Without the power of solidarity, an individual's pursuit of his own interests will produce no results. It is critical that all members of the group are heading in the same direction and working toward the same goal.

What do you say and do at Tan Hiep Phat to persuade like-minded individuals to commit to the business?

Tran Uyen Phuong: Before a person may begin executing successful work, the position must first fulfil his or her own aspirations and the organisation's objectives. Then, they will undoubtedly try their best, and things will become simpler. When applying for a job, each applicant has a specific goal in mind, which they strive towards while contributing to the organisation's overarching objective.

Tan Hiep Phat's logo consists of two hands clasped together and a thumbs-up, signifying the superior quality of the product and the determination to become the leading beverage provider in Vietnam and the region. How does Tan Hiep Phat plan to achieve this?

Tran Uyen Phuong: The pursuit of a goal and vision is a lengthy road. Tan Hiep Phat's philosophy is that "today must be better than yesterday, and tomorrow must be better than today." This is the developmental guideline for Tan Hiep.

As a company, no one can predict what will happen next; all that can be done is strive to create better goods and expand. Trading is inherently dangerous and unpredictable, but we always try our best.

Tan Hiep Phat understands that businesses that want to grow must start with sustainable development and has taken pioneering steps towards sustainable growth. Can you provide further information on this?

Tran Uyen Phuong: After 28 years, Tan Hiep Phat views the industry's corporations as giants. Tan Hiep Phat is among the top three in the field. The group regards sustainable growth as adding value for society, such as the environment and social responsibility. In terms of development, we are not only focused on finances and specialisation but also on community and ecological concerns. Tan Hiep Phat presents a research challenge to develop items in the chain of tools that the company recycles to manufacture additional products. The issue constantly offers unknowns, such as not just discussing business but also how beneficial business is for society and how to improve on what we have today.

Currently, Tan Hiep Phat is manufacturing and recycling plastic to create pallets to satisfy the group's requirements and may supply companies in the sector with demands, contributing to the growth of the circular economy.

David Charles Riddle - Member of the Board of Directors

Tan Hiep Phat's uniqueness leads to outstanding efforts

I have had the privilege and pleasure of being an advisor to THP and the Tran family for several years now and I am continually impressed with the drive and ambition to be the leading food and beverage company in Asia. This is not hyperbole on behalf of Dr Thanh, the founder and CEO, and Phuong and Bich, deputy CEOs; it is a genuine commitment to building a company through investing heavily in the best manufacturing equipment and systems available and implementing processes that deliver the best quality products for our customers.

While these are essential tools in the challenge to be the best, business is a team sport, and we focus on our people. In my opinion, the critical aspect of our success to date is the family’s dedication to supporting and enhancing the culture within the company by building and sustaining capability within the leadership team and staff.

Capability in our context is not simply hiring and retaining people with the skills to complete the tasks required by the respective roles. Skills can be learnt. We are looking at the people's character: integrity, trust, team spirit, etc. to ensure they will fit, enhance, and support the culture and their colleagues.

We have very aggressive growth ambitions, strong leaders with a clear strategy and great resources, both physical and human, and we are fortunate to be primarily operating in a country that is one of the shining stars of Southeast Asia, which fills me with confidence that we can achieve our targets over the next 3-5 years.

Yap Teow Hiong - Member of the Board of Directors, in charge of IT governance , corporate risks and suppliers

Tan Hiep Phat Group shows outstanding efforts

To be leading, one must be pre-eminent and acknowledged. Respected for integrity and a continuous drive to satisfy the end-consumers, Tan Hiep Phat’s systems, including research, product and service development, and production, are aimed at one simple objective – to bring the best for its partners and customers. Everyone in the value chain has an important part to play in achieving this goal in the market.

To date, Tan Hiep Phat has achieved market leadership in Vietnam through diligent hard work, intelligence, and determination led by the founder, Dr Thanh. He has created a miracle over the past few years. To accelerate and make Tan Hiep Phat international and global in this Asian century, systems thinking, judgement and good talent are necessary components of the growth strategy.

Good talent is hard to find and retain. Tan Hiep Phat is working hard to nurture talent through its Talent Academy, training future leaders for itself and the industry. Its commitment goes beyond the enterprise and aims to benefit society. Its push into sustainability and the environment to contribute to planet Earth, and its stakeholders are second to none.

Congratulations to the Thanh family and the next generation of leaders in taking Tan Hiep Phat to greater heights, from Vietnam to Asia and worldwide.

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By Hai Yen

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