This is a new trend of the industrial construction industry in the future, where detailed, transparent and highly specialized online consultations, debates and reports will gradually replace the traditional form of interaction.
- Changes in the FDI factory construction industry in the period of 2019 – 2021
- The Difficulties of Foreign Investors
- Adaptation of major construction contractors in Vietnam
Changes in the FDI factory construction industry in the period of 2019 – 2021
In Asian countries in general and Vietnam in particular, foreign investors are facing many difficulties in accessing and implementing investment projects due to the 4th wave of COVID-19. Investors cannot be directly present in Vietnam to survey and conduct investment procedures, as well as work with contractors to build factories on schedule. It is forecasted that in the future it will be difficult to achieve “zero Covid”, while production plans, investment plans and factory expansion still have to take place, investors gradually turn to other methods: remote working, organize meetings and exchanges with contractors through online tools, select contractors through interviews,
test professional capacity and financial ability… instead of previous traditional methods.
The Difficulties of Foreign Investors
Complicated investment procedures
The regulations and procedures for foreign investment in each country are very different. In a country that is developing strongly in economy like Vietnam, many administrative procedures, legal regulations, etc. are constantly changed and updated, making it difficult for many investors to access.
In the field of industrial construction, there are also continuously new standards and regulations on the design – construction of factories, fire protection systems, etc., which are proposed, approved, and applied. They will confuse foreign investors without the help of experienced consulting units, especially during consultations and working remotely.
Environmental and cultural differences
The investment environment as well as culture in Vietnam is considered by investors to be very different from European and American countries, even different from East Asian countries such as Korea, Japan. Vietnamese business culture is considered to be strongly influenced by Confucianism, focusing on relationships, responsibilities and obligations. Vietnamese people are collectivist and most decisions will come from collective consensus instead of individual decisions. Besides, in the business environment, Vietnamese people also attach great importance to the social connections created between business partners; The relationships and interactions between investors and suppliers can influence the final transaction and negotiation results.**
If it is impossible for investors to be directly present in Vietnam and experience, it is very difficult for investors to understand the business culture as well as to clearly feel the character and culture of the Vietnamese people. This can significantly influence investment decisions.
Difficulty in evaluating contractors
When it is impossible to directly meet and interview the contractor, the investor may face many difficulties in assessing the contractor’s scale, capacity and financial ability.
However, investors can still evaluate contractors through data on capacity profiles, financial capabilities… as well as online interviews, or consider capacity through contractor’s design concepts. From there, there will be a suitable partner shortlist to organize bidding.
Adaptation of major construction contractors in Vietnam
Update the latest solutions and technology
In order to keep up with the complex requirements as well as the latest technologies and production lines of the Investor, Vietnamese factory construction companies ineed to continuously research and update all kinds of materials as well as the latest design – construction solutions. New trends can be mentioned such as: 2-storey factory helps to optimize twice the space on the same land area; smart factory technology helps to monitor remotely and automatically handle problems, helping the Investor save operating costs, reduce risks, save warranty and maintenance costs. They are being consulted and applied by DELCO in many projects in Bac Ninh, Binh Duong…
Maintain the quality of the construction with a more reasonable bid
In the context of the increasingly competitive Vietnamese construction market, the major construction contractors in Vietnam must constantly adapt to continue to develop. On the one hand, Vietnamese factory construction companies must maintain design and construction quality close to that of foreign construction companies in Vietnam but with a more reasonable price. On the other hand, they must constantly update technology and learn on behalf of the investor the latest construction standards and regulations to advise more effectively. Those are also advantages that help investors choose companies like DELCO to assign responsibilities.
Professional and transparent working attitude
From DELCO’s experience, it is the dedication, professionalism and transparency in the process of commercial communication – bidding will be the main factors to convince the big investors. When the parties cannot directly contact, it is the careful advice, professional working style and financial transparency of the general construction contractors that will impress foreign partners.
Online meeting between DELCO and Italian investor, consulting technology for the factory project in Thai Nguyen
For DELCO, in the period from the second quarter to the third quarter of 2021, the business situation still achieved positive results despite the outbreak of the disease and many stalled activities across the country. DELCO has effectively consulted online investment for nearly 10 FDI projects during the 6 months of the outbreak. At the end of October 2021, DELCO officially signed a contract of General Contractor for M&E design – construction of the factory of a leading European brand in the field of motorcycle and motorcycle protective gear. In addition, many other potential projects of investors from Taiwan, Korea… are also planning to be implemented soon.
Further, we believe that this is also a new trend of the industrial construction industry in the future, where detailed, transparent and highly specialized online consultations, debates and reports will gradually replace the traditional form of interaction, helping investors be more flexible in the process of organizing tenders and selecting contractors, even in conditions limited by epidemics, natural disasters… and reputable construction companies in Vietnam like DELCO will be the best options for investors.
** Source: TMF Group / Top 10 challenges of doing business in Vietnam
—- The copyright of the article on the delco-construction.com website belongs to DELCO® Construction. Please do not copy or edit any images or content without the written consent of DELCO®. —-