When in Rome
Yang Kaiyong believes that Vietnam is still a ripe target for Chinese investment in Southeast Asia. While other nations in the region change their policies quickly, have poor infrastructure and are highly insecure, he says Vietnam is relatively stable and therefore profitable.
Over the years, more and more Chinese companies are trying to expand into other countries. Many are learning that to succeed abroad, they will have to do things differently.
The most important factor in changing people's perceptions of Chinese firms is product quality, Deng believes.
TCL has started to offer a three-year quality guarantee for its TVs, which is longer than most other companies offer in Vietnam.
"If our brand isn't as appealing to consumers as Samsung, Sony or LG, then we need to do something that others aren't willing to," Deng said. He wants customers to see TCL's product and compare the quality, price and service for themselves.
Yang Wenbin, general manager of the Gree Corporation in Vietnam, has his own views on how Chinese companies can do well in Vietnam.
"Companies should abide by local laws and customs," he said. "What I feel is most impressive about Vietnam is that the people all have a strong sense of law. There are some areas that we consider to be gray, but to them, it's unimaginable."
Yang gave an example. When air conditioners that have been sold malfunction, the Chinese way would've been to take back the machines and switch the parts that malfunctioned with new parts. But the Vietnamese workers in the company strongly advised him against it, saying it's illegal. Therefore, Yang had to order a new batch of machines from the Chinese headquarters to set aside solely for the purpose of exchanging.
The Vietnamese keep a close watch on foreign companies and protest if any incident harms their own livelihood, which is why the polluting steel factory case instantly went viral in the country.
It's also a local tradition to join in with charity work, a concept that may be alien to Chinese companies or entrepreneurs.
Right now, Gree is working with a local government in northern Vietnam, with the goal of building an elementary school. They are also engaging in poverty relief efforts, helping some of the country's poorest families get access to healthcare and food.
Yang hopes that by making these gestures, the company can establish a good reputation as well as actually making accomplishments in society.
Another technique is to push for localization. After years of recruitment and development in Vietnam, right now 95 percent of the employees of TCL are Vietnamese, including people in middle or upper level management posts. The company has also received awards from the local government for providing job opportunities and boosting the local economy.
Because TCL has worked on long-term localization, the local employees don't think about the fact that they are managed by a group of Chinese and develop an antagonistic point of view, Deng said, adding that the issues between the two governments don't concern them too much.
"The pay and benefits they receive at TCL and the social status they receive from having a good job can change their lives," Deng said.
Just this year, TCL started a new campaign that made ordinary employees the star of online advertisements. The ads were promoted on social media, concentrating on a few figures who have made contributions to the company.
"This is a great way of increasing employee enthusiasm and making them feel like it's their company," Deng said.
In fact, they do. Ryan Do has worked at TCL for 10 years and worked his way from a low level position up to director of their marketing department. He studied in Nanjing, Jiangsu Province and used TCL products in China. So when he went back to Vietnam, he joined the company.
"Chinese companies offer opportunities to young people, which is different from what I've seen with Japanese or Western companies," he said.
But in general, it's difficult for Chinese companies to operate overseas, especially in a country that has tense relations with China.
"Companies need to advertise, and so do countries," said Gree's Yang Wenbin. "Chinese companies took to overseas markets later than Western companies, so there's not a lot of experience of internationalization. The government should aid companies in doing more publicity overseas."
