Setting up and running engineering businesses in vietnam as a foreigner

Setting Up and Running Engineering Businesses in Vietnam as a Foreigner Lee Kar Heng TBSS Center for Electrical and Electronics Engineering Abstract Engineers invent new products, determine new methodologies and create new solutions How can these skills and knowledge be used in setting up a business? Engineers analyse and fix daily problems with great ideas, and discuss their start up ideas, with their classmates, friends and family members Many believe that it is just only a short step to take the inventions or methodologies to start up as an entrepreneur, in this case, why are there only several successful engineers-turned-entrepreneurs? In this case, in a foreign country? This paper discusses who an engineering entrepreneur is and how success is being measured The author will share his experiences on how he had transited from being an engineer to becoming an entrepreneur in a foreign country Finally, the paper will discuss the contradicting attributes and route to becoming an entrepreneur and subsequently, a leader to maintain the business This paper also discusses the difference in management style between Singaporean and Vietnamese Management Keywords: engineers; engineering; entrepreneur; start up; business Introduction This paper gives a detailed account of the real experience of an engineer who turned entrepreneur in a foreign country In addition, it discusses the attributes of an engineer that help and hinder in starting up and running a business In the pursuit of a dream, a business plan was crafted With the plan, actions were taken and lessons were learned The author is a Singaporean, what were the reasons for the author to start up in a foreign land, Vietnam? The paper discusses the challenges and how they were overcome Many engineers are good in solving problems with structured methodologies, in creating new solutions or in innovating new products, can these skills, knowledge or attitude being applied in business operations and in maintaining businesses? This paper will also touch on after stabilizing the business, what has the author been doing to expand the business by implementing Corporate Social Responsibility and raising his professional profile Background The author was a typical engineer who had worked for various government agencies such as the Defense Science and Technology Agency, DSO National Laboratories, Police Technology Department and, Maritime and Port Authority in Singapore before starting to run a business The author had also taught at Temasek Polytechnic and the Institute of Technical Education as full time lecturer In addition, the author also taught, as part time academic staff, at the Newcastle University, SIM University, Edith Cowan University and the University of Southern Queensland At various government agencies, the author was largely responsible of radars and electronic warfare, in terms of carrying out feasibility studies, writing specification evaluating technologies, implementing new 129 systems and maintaining systems With various academic institutions, the author taught antennas, propagation, RF systems, signal processing and communication engineering In addition, the author had also conducted professional short courses in the radar systems Who Is An Entrepreneur? One who sacrifices time, effort and resources to turn an idea into a marketable product or service is essentially an entrepreneur An entrepreneur takes the risks of a new venture where is a significant chance for profit One must be into entrepreneurship before evening realizing it The author had always wanted to start up, due to the need to bring up his children, more stable income government jobs were chosen With additional income from teaching and the desire to groom the children, the author’s children are now doing relatively well 3.1 The Daughter The author’s elder child, she went to a great primary school, Henry Park Primary School He registered his daughter into the school at the advanced stage by contributed more than 40 hours to the school working on a science curriculum His daughter later went to an elite secondary school and junior college, namely, the Singapore Chinese Girls’ School and Victoria Junior College She earned her Mathematics degree from the Nanyang Technological University under the Ministry of Education Scholarship She is now a qualified teacher 3.2 The Son The younger child went from Henry Park Primary School to Raffles Institution, which is arguably the best school in Singapore The boy played competitive tennis, representing his schools and country in major competitions including the Davis Cup With good physical and mental strength, he was enlisted into the Navy as Naval Diver He completed his National Service with a rank of full Lieutenant He is currently a student with the National University of Singapore a Son Graduating as a Naval Officer b Daughter Graduating with a Mathematics Degree from NTU Fig The Author with Children 3.3 The Analogy Although the author chose to give his children a good platform during their growing up phase, he applied the necessary skills required which later proved to be useful in his start up Concentration and being focus in bringing up and grooming our kids are important, the author demonstrated important engineer’s attributes 130 such as being persistence, dynamism, able to plan and solving problem These are important elements as an entrepreneur When his children have grown up and become independent, and with other rationalization reasons, the author decided to start up his own business It is critical for an entrepreneur particularly during the start up stage to be worry-free Engineers to Entrepreneurs 4.1 Engineers’ Attributes As a practising engineer, the author strongly believes that an engineer  Can build trust easily (high arguable but this is the author’s experience)  Posses great analytical abilities (helps in researching, evaluating, decision making and risk taking)  Solves problem well (engineers are trained to solve problems, it helps in solving clients’ problems too)  Is Perseverance (problem must be solved)  Is too precise (time and effort)  Must be involved (too involved but as an entrepreneur, there are more than just technical work)  Dislikes unpredictable stuffs (being too cautious and not daring to take risks)  Wants things to work (but entrepreneurs needs to manage clients too) 4.2 Books and Guides They are many books and even guides in the market that discussed entrepreneurship Some books also focus on engineers to entrepreneurs While some of the discussions are helpful, not all books or guides are appropriate Although it is necessary to refer, engineers need to be aware of the authors’ background and their perspectives on entrepreneurship Is the author an engineer? Is the author a successful entrepreneur? Is the author a successful engineer-turned-entreprenuer? Entrepreneurship is not about attracting seed capital, neither does it mean to build a multi-million dollars company 4.3 Misconceptions  New and cool technology can sell - it is important to assess the market, not all technologies are practical and cost-justifiable to the consumers  It is important to the job myself - engineers sometimes work alone because they believe only in what they see but this is the case in running a business where diversified skills are required  Marketing is wasting time - it is necessary to inform potential consumers of how good your solution or product is, a great product may lose out to one with great marketing strategy  Functions before customers - this is a common behaviour that engineers believe, but customers will only pay for the functions they want and if we not listen to the customers, we can’t offer them right functions, right solutions, right services with right prices  Engineers dislike risks and unpredictability - entrepreneurs must accept and manage risks to become successful in running a business  Solve problem first money later - being too focus in solving a problem, working out a solution or designing a product before considering the cost is not business, it is just engineering  External funding causes loss of ownership - for expansion and growth, it may be necessary to accept fund injects 131 4.4 To Start or To Remain? If you are considering starting a business because of being jobless then it is better to consider looking for a job Starting a business is much more difficult because there is no job description and there is no fixed income every month Do you really want it? Considering the author’s experiences below  You will be alone most of the time because you are different things  You friends will miss you, so does your family  Many tries, one or two successes and there is no guaranty for it  Initial results may be discouraging (but it will improve if you persist)  There is no real support, encouraging words are encouraging  Cruelly, not many really want you to success  Luck plays an important role and being lucky means you have to be prepared when it comes, the more you are prepared, the more lucky you will be The Journey The author left his last employed with one of the ministries to start us in 2012 It has been more than years How had it been achieved? Is the author still passionate about the business he had started? 5.1 The Initial Stage The author actually planned to start up years before his children became independent The author had been an engineer for many years, what can he offer? The easiest way is to represent a product This is tough in Singapore where almost all the possible products that the author can sell have either agents or representatives The author had also planned to offer services of his specialized skill and knowledge domain However, this sector has been occupied by the Government Linked Companies, in addition, the author did not have the financial capability to handle defense projects directly While the author was in the early start up stage, he continued to teach as adjunct or part-time academic staff He had refused to join these institutions as full time staff, it did not make sense to be a full-time employee again after leaving a government agency as a full-time staff The only choice to was to venture overseas due to limited opportunities 5.2 Which Foreign Country to Go? Entering a new ground as a start up is different from large corporate Large corporate have sufficient resources to engage services to carry out feasibility study, matching and application of business licenses As a start up, we have to handle it personally We would need to understand the local business registration process, taxation and legal systems In addition, we will have to decide on whether if we need to station in the foreign office permanently or operate between the home country and foreign land The support of family and friends are important, one needs to be worry-free in the initial start-up Depending on the business activity, you may need to have a local coordinator for assistance In the minimum, you need a assistance to transfer cash Issues like lodging, transportation and food are also important as a start up when expenses must be careful The author carried out an analysis on several neighbouring countries, based on the foreign country’s requirements of the skill sets, potential for growth, present economy and living lifestyle, Vietnam and Myanmar were shortlisted 132 The author could speak a little Vietnamese which he had picked up in social activities When one of his business contacts required a trusted coordinator in Ho Chi Minh City, the author agreed to go over despite not having overseas working experience The author viewed this short-term job as an opportunity to assess Vietnam further The author around meeting and interacting with the locals after work was completed daily or weekly Soon, the author verified that specialized skills in Radar, Defense Systems and large-scale project management, which were earlier assessed to be lacking then in Vietnam An office in Ho Chi Minh City, Cong Ty TNHH Khai Kinh was subsequently formed When opportunity comes, seize it 5.3 Casting When the author first started, he selected the net casting approach, that is, besides lobbying for work in his specialized areas, he also tried to bring Vietnam goods back to Singapore and provided tour services Soon, his presence in Vietnam was spotted by a radar manufacturer whom he had worked with during his civil service days This radar manufacturer needed one specialized company to represent them in Vietnam., the author began his route in radar and defense businesses To catch, one needs to cast 5.4 Casting The author later stopped all the trading and tour services to focus on the radar business It is important to focus on a primary product or service once the direction has been set The author would visit all potential end users and partners The author would also provide technical inputs to the potential end users and partners Today, the radar manufacturer has a total of 14 radars installed in Vietnam It is important to be focused and specialized 5.5 Alignment The author went through the difficulties in starting an office in Vietnam in terms of government processes, local work methodologies, languages and differences in culture As the primary business enters the steady state, the author subsequently started another business to assist foreign companies to start up in Vietnam When time is right, diversified Steady State A business is in a steady state when it generates sufficient income to maintain all the expenses Today, the author has paid off his housing loan in Singapore, bought an apartment and built a holiday house in Vietnam He also owes several vehicles He also travels on business class more frequently now But does this mean that the author is successful? 6.1 Steady State Success is not defined by the profit generated but whether if the purpose of setting up a business has been met There is only one Mark, Steve, Jack or Sim To be a successful entrepreneurial, you not need to be millionaire The author defines a successful entrepreneur as one who takes the risk to start up by providing unique services or products to generate an income to substitute a salary to feed all the dependents A successful entrepreneur usually demonstrates  Enjoyment in work  Seriousness in pursuing success  Planning for achievements  Managing the cash-flow wisely 133  Leading the team  and last but not least, knowing the customers well Success can be redefined when the business runs well, from satisfying fundamental needs to other needs such as a dream to own a luxurious car or a sea view house Fig Some Achievements 6.2 The Real But Painful Truth An an entrepreneur, no one pays your salary monthly, irregardless of the business an entrepreneur is doing, the following experiences the author has gone through and believes should apply  No one is responsible for your success and failure  An entrepreneur is neither a free nor lazy man/lady  Do not always think of making money, you need to improve your profile  There is no easy trade as an entrepreneur  There will always be hiccups, and problems you have to solve and settle: finance, technical, operational,  If you can't make money from a deal, pick up the knowledge  If there is no knowledge to pick up, learn an experience  Attitude is the most important factor to success  Do it, too much thinking is a burden  Start small 6.3 How To Achieve? Customers are everything, a start up owner must make sure they are understood You must also be a shameless marketing guy, whenever there is an opportunity, it is necessary to highlight the success of projects and achievements It is necessary to also project a positive image by giving good service, working solutions and effect training It is also necessary employ as and when necessary, a team is always better an individual The offer must be competitive and therefore it is a must to negotiate More importantly, an entrepreneur is not a robot but a human who needs to Rest, Relax and Recharge 6.4 Maintaining the Business One must always take care of the family and groom their children to fullest potential If one can’t bother to groom he/her children, it reflect how good he or she is 134 It is import improve continuously, this can be achieved by reading, writing and presenting The author started to publish and present in various international professional conference regionally This does not only push the author to read and write more, it also raise the author and subsequently, the company’s public image In 2016 and 2017, the author presented in Singapore, Malaysia, Vietnam, Hong Kong and America The audience size ranged from 20+ to 1600+, this has also made the author a better presenter and more knowledgeable This helps in securing deals It is important to network to know more business associates, this had created some jobs for the author More over, it is a must to attend important functions to enlarge the network a Mr Teo Chee Hean, Deputy Prime Ministry, Singapore b Mr Lee Hsien Loong, Prime Minister, Singapore Fig Some Photographs Taken During Networking Sessions The author initiated a Corporate Social Responsibility drive within the company to encourage “earn from the society, return favor to the society” Under this drive, the company donated necessary items to the less privileged, contribution prizes to top students and challenges In particular, the author is keen to carry out a STEM drive to inspire younger boys and girls to take up technical and engineering as career a Contributing to Local Community b Appreciation Certificate Issued by Province Government Fig Some Photographs Taken During Corporate Social Responsibility 135 Acknowledgment The author would like thank his family members and friends who had really helped Without them, there is no success A dinner was organized to thank all the friends and business partners who had helped during the author’s start up recently Fig Appreciating Friends and Business Associates Who Had Helped Quotes “Start up is an Ironman race where amateurs and professionals race in the same race and it is continuous Pace yourself.” (K.H Lee) “A successful entrepreneur is one who takes the risk to start up a business, provides unique services or products to generate an income to substitute a salary.” (K.H Lee) References M Cladwell, Outliners - The Story of Success Allen Lane an Imprint of Penguin Books, 2008 Committee on the Engineer of 2020, 2004, The Engineer of 2020: Visions of Engineering in the New Century The National Academies Press, Chapter A Duckworth, Grit, Scribner, 2016 About The Author Dr Lee start up and currently runs TBSS companies in Singapore and Vietnam In Singapore, Lee designs and delivers courses in Radar Systems, Communications and EW for officers and engineers from the government agencies and defense industry, in Vietnam, Lee manages radar systems, radar training system and radar fusion software projects for Vietnam Maritime Administration, Vietnam Navy and Vietnam Naval Academy Lee had designed small profile antennas and microwave circuit applied in detection of authorized mobile signals, developed radar analysis tools and conducted feasibility study on the use of radar in swimmer detection and the use of FMCW in swimmer detection 136 ... in Vietnam, Lee manages radar systems, radar training system and radar fusion software projects for Vietnam Maritime Administration, Vietnam Navy and Vietnam Naval Academy Lee had designed small...systems and maintaining systems With various academic institutions, the author taught antennas, propagation, RF systems, signal processing and communication engineering In addition, the author had also... to maintain all the expenses Today, the author has paid off his housing loan in Singapore, bought an apartment and built a holiday house in Vietnam He also owes several vehicles He also travels