Mission accomplished: NZ businesses glean contacts in Vietnam
In early March 2011 Asia:NZ trustee Sir Ken Stevens led a New Zealand trade mission to Vietnam, organised jointly by Export New Zealand and the ASEAN New Zealand Combined Business Council. Business representatives had the opportunity of gaining precious insights into the Vietnamese economy, meeting NZTE Beachhead advisors for the region and meeting useful contacts.
Asia:NZ chairman Hon Philip Burdon and executive director Dr Richard Grant, who were in Asia at the time, also had a chance to meet with the Kiwi delegation. Gilbert Peterson from Export New Zealand was part of the trade mission and described it in these glowing terms.
It’s 8 am on Friday, 11 March in Hanoi, and Sir Ken Stevens calls for a de-briefing in the foyer of our hotel. He wants us to share thoughts with each other on what our trade mission to Vietnam has achieved.
Photo: Sir Ken Stevens, first from the right, with trade delegates at breakfast
How much have delegates been able to sell? Have we made the right contacts for future business and visits? Will there be future visits? What have been the highlights? What mistakes have been made, and what lessons can we learn?
Sir Ken has led this trade mission organised jointly by Export New Zealand and the ASEAN New Zealand Combined Business Council, and as both a board member of the Asia New Zealand Foundation and chairman of Export New Zealand, it is naturally important to him that the project is a big success. He has also been investigating the Vietnam opportunity for his own firm, Glidepath Group.
Sir Ken introduces the de-brief by saying for his company the trade mission has been a great way to build a picture of the country.
“If you came here on your own, you would not get this,” he says.
Sir Ken is referring to the packed programme of briefings, meetings with officials, site visits and pre-arranged meetings with prospective business contacts.
Forging relationships
The delegation met the New Zealand Trade & Enterprise (NZTE) Beach Heads advisors for Southeast Asia in person – all of whom are board directors, and all extremely well connected. Mission delegates had the chance to present to them formally, as well as chat informally. They were updated on Vietnam’s economy by local bank economists and lawyers, and briefed on their own specific industry sectors: food and beverage; construction; and aviation.
In Ho Chi Minh City, Danang and Hanoi they met government officials, which in this country can be highly valuable. They visited a port, a shipbuilding yard, a ceramics factory and a local brewery, and the mission’s own contacts along with those of NZTE ensured they were matched to meet a diverse group of Vietnamese in their own sectors of business interest.
Photo: BITEXCO Financial Tower in Ho Chi Minh City
“The market is a whole lot bigger than I thought,” Sir Ken said. “But we have to meet it on price, and world trade has changed.
“It’s no longer a matter of bilateral trading. We can’t scatter gun everywhere. So we need to partner locally in the markets where we decide to participate. We need to source some components locally. And we need to tap into the diaspora.
“The mission presented a busy schedule but we got it done. It was also very valuable to have three Vietnamese speakers on the tour.”
Mike Petersen reported all the meetings arranged for his company NALCO, makers of aluminium window and door joinery, were good contacts. The follow-up will count, of course. “We have been invited to participate in a $US1bn development project, but we need to decide which projects we will take on.”
For Mike the best meetings were the last two, one with the Ministry of Construction in Hanoi. “That was vital. Our host said if we made up samples she will help make them available to local architects.” The second visit, to the Vietnamese Glass Association, was also very genuine: “they want to help.”
“These two gave us better insight into how the industry works here. Their interest was also in what’s good for the country, not self-interest. I learned in the construction sector it’s a lot easier than I thought from a regulatory sense. I’m pretty sure we’ll come back – our next step is to set down our objectives then get our Managing Director over to consolidate and strengthen the contacts we’ve made.”
Mike adds discussions were also started with NZTE on the scope for establishing a representative office for a group of New Zealand construction businesses, a specialty export cluster. “We’ve come from zero to a level of activity in the fastest possible time, and to do this we would have spent far more as an individual company than we’ve spent on this trip.”
Shane Binney represented Lake Chalice wine and others on the mission. For him it was very much about ‘R&R – research and relationships.’ “I got a great deal out of the Beach Heads Advisory Board people,” Shane said, “They are very experienced and knowledgeable. The trip itself was go, go, go, but I wouldn’t expect less. All in all the follow-up starts now."
Viet River Farm’s Richard White said the mission took their activity to a new level. Richard said as a result they could now expect more orders, for instance for up to 10 tonnes of cherries, apples and others for meat cuts. “We find we are price-competitive,” he said.
Ron Hendl has been making the trip to Vietnam for many years. His Waikato-based company makes stainless steel vessels for the dairy, food processing, brewing and chemical industries. In 1993 he shipped a milk processing plant north of Hanoi, and he returns there when the chance offers.
Though often a sole traveller, Ron was enthusiastic about the mission. “It’s a very worthwhile way of doing things,” he said. “I like the concept of group travel and on this trip I made a lot of contacts I wouldn’t have otherwise. Some of them will come to New Zealand to discuss more business with me. It’s been very useful.”
Architect Ken Stanton, a partner with Auckland architectural practice Stephenson Turner, said the mission gave him the chance to meet a better number of contacts.
He said he was going to leave with a good set of contacts and a good view of the country. His only complaint was he felt he didn’t have time to prepare himself better before leaving home!
Photo: Photo: Trade mission leader Sir Ken Stevens, NZ Ambassador Heather Riddell, NZ Consul-General and Trade Commissioner Graham Sims, with Luong Minh Sam, Director of Danang’s Foreign Affairs Department welcoming the New Zealand trade mission delegation.
Building research executive Chris Kane from BRANZ was delighted to be on the mission. “The programme went brilliantly,” he said. “We learned a lot from the Ministry of Construction – there are lots of opportunities for New Zealand firms as suppliers of builders’ supplies. The networks and contacts established are incredibly valuable. It was definitely worth it.”
New Zealand Consul-General and Trade Commissioner in Ho Chi Minh City,
Graham Sims, added a few parting words to our de-briefing: “Now, if you come to this market as individual businesses, we will know what to expect, and we will partner with you, and set up a programme for you. Please call us to assist.”
Asia:NZ young leader values the experience
One other person who found the mission eye-popping and part of an intensive learning experience was Asia:NZ young leader Charles Wilson. Based in Ho Chi Minh City on a two-month business internship organised by Asia:NZ and KPMG, he had the opportunity to be included in the mission Charles’s time in Vietnam is almost up, so the chance to join in the mission programme was a very welcome last-minute bonus.
On Vietnam Charles says: “It’s great to have this overseas experience in the real business world so early in my career. Vietnam is an amazing place. There’s huge potential here.”
Photo: The mighty Saigon: Ho Chi Minh is a bustling city on the banks of the big river
Charles has had several memorable experiences including attending a colleague’s wedding two hours south of Ho Chi Minh. He found that totally new and unique. Another business trip with a KPMG team of auditors took him for 10 days to Vung Tau, and another was to the beach resort Na Trang.
Charles reports the trade mission experience was “a huge privilege” and he feels incredibly fortunate to have been able to make friendly acquantaince with Sir Ken Stevens, New Zealand ambassador Heather Riddell, Consul-General Graham Sims and ASEAN New Zealand Business Council director David Catty.
“I owe these people a huge vote of thanks,” he said. “The mission has certainly been a big highlight of my stay in Vietnam.”
Asia:NZ is grateful to Gilbert Peterson for this report on the New Zealand trade mission to Vietnam.