INVESTING IN SAI GON 3, I REALISE MY SOCIAL RESPONSIBILITY

Who owns the largest shares in Sai Gon 3 Garment Company? Nguyen Khanh Linh. Who makes decisions to penalize irresponsible shareholders who harm the collective interests? Nguyen Khanh Linh. Who chooses the best food and drink for workers? Of course, also Nguyen Khanh Linh...

The conversation with Mr. Nguyen Khanh Linh took place at the Representative Office of SG3 Garment Company in the center of District 1, Ho Chi Minh City, which has gone through a completely transformation since the previous meeting just some time ago.

The "big boss" Nguyen Khanh Linh is a strong and assertive man. Behind the white glasses that made him look like a gentle teacher are the sharp eyes of a man with rich experience who knows what he wants. He responded our questions frankly, not shying away from the risky investment decisions and the path of "transformation" to breathe new life into Sai Gon 3 Garment Company.

He paused a bit when we asked him this question: "Looking back at your investment history as a professional financial investor, we can see that you have mostly invested in capital. Why with SG3 Garment, you have been so attentive to its operation and got heavily involved in its management activities, from something as grand as strategic planning for international market expansion to as petty as choosing the best model of toilet for the workers? You seem to have been "touched" by the workers here, or what happened in SG3 that made you so into it?

He said that all the changes in the restructuring process, whether big or small, is not based on his personal interests. They must be for the sake of the SG3 community, which encompasses so many lives of workers.

As a professional financial investor highly successful in various fields such as securities, banking, real estate and pharmacy, why did you choose to invest in the garment industry, especially Sai Gon 3 Company, where the production environment is, etc. rather complex?

It was part of destiny. Previously, I only looked for reputable projects and companies to invest in. I happened to know that there were insiders in Sai Gon 3 companies who wanted to transfer shares. After some research, I knew that this company had potentials. It just lacked proper direction for further development. The other thing is that I wanted to invest in something that benefits the community.

If I want to do nothing and still gain profits, I can just deposit my money into the bank. I can sit there all day and see the money flows itself into my account. But doing something that can spark positive changes in the lives of the people is much more fun and meaningful, albeit harder. It is social responsibility. Here, getting involved in the process and witnessing the resulting change, I am very satisfied. It is real work, and it is not just empty words that you often heard or said before.

What are the potentials of SG3? How do you want to develop them?

The Company has complete infrastructure which operates well in harmony and a large and stable customer base. Employees of SG3 are gentle, loyal and hard-working, and the managers are very attentive, effective and empathetic. That is the business culture, the core values of SG3 that no money can buy. However, in the past, due to outdated and conservative ways of thinking and working which negatively affected certain individuals, SG3 couldn't properly develop as much as it should have.

Now SG3 is in the top 10 companies of the textile and garment industry in Vietnam. I want SG3 to be in the top 3 and the life quality of workers to improve, so that they can earn $ 550-600 per month on average. Someone who does well can even get $ 1,000 or more. And SG3 will not only make garment products as requested; it will expand its production capacity through associates and affiliations and create its own brands in the market.

So what does SG3 have to do to achieve those goals?

Of course we have to restructure. We must accept changes and innovation, getting rid of the old, the outdated and what goes against the development trends. We have to invest more in machineries and human resources.

Let me get straight this question, though it might be a bit sensitive. You are renowned as a financial expert, but you are just a novice when it comes to the textile and garment industry. So how did you convince nearly three thousand people in the Company to accept the changes?

We looked for the people who have rich professional experience and a passion for sharing and inspiring. Then we gave them the general orientation and nurtured the collective spirit in them, so everyone could just follow. For example, in order to effectively implement the LEAN model, we invited experts with practical experience in production and operation to work with us, those who understand the processes, the mechanisms and the typical characters of the garment industry but also conform well to SG3 culture. We demonstrated to workers step-by-step that LEAN is a useful improvement to help change their lives. Therefore, they volunteered to follow the model. We have been managing in a consistent collective spirit, and the key is winning people's heart.

So what is the collective spirit, or "winning people's heart", of the Board of Directors?

Manpower is important. Only when people can develop themselves, their quality of life is good and their family is stable, can the company develop, customers and partners are satisfied and willing to cooperate further. Each part of the company is equally important. It’s not that only the person bringing the money or the contract to the company is about to be recognized: it’s just not like that. The success of the company, of the community, must rely on the achievements of each individual.

However, we want to create useful and effective employees rather than creating stars, because the stars will find it difficult to get along with SG3’s culture.

Are there any differences in the recruitment criteria of SG3 these days?

Firstly, the people we take in must have real abilities; they stand out and climb up the career ladder because of their own power and not their connections. Secondly, they must have strong work ethics; they don’t act out of personal gains and affect the community’s interests. Thirdly, they must get along well with the culture of SG3. As I said, the honesty, sincerity and kindness are the main cultural features that have been nurtured from the early start. These factors make up the strength of the Company. Here, the people chosen as leaders and managers must always be the role-models: they can do as they say.

What does the new Board of Directors need to do to enable employees, particularly garment workers, to unleash their full potentials?

We invest in modern factories, machineries, cutting-edge facilities and processes, which means we give them more tools to work effectively and let them take the initiative at work. We also create a friendly, fair and professional working environment so that they can feel safe and comfortable to work and to improve their quality of life.

Specifically, we emphasize transparency and mutual interaction. There is no way the leaders just gives orders and the staffs must obey at all costs. If there is anything workers might disagree, they can challenge the leaders, and whoever is wrong must admit their mistake and write official apologies. The person with the right answer must also explain to make sure the message is communicated accurately to everyone. There is no exception from the Board of Directors to the employees. We also remove the distinction between administrative offices and manufacturing factories, or between junior and senior staffs. Regardless of job positions and workplaces, if someone in this group has 3 months' salary, the other in the same group or of the same organizational level must be treated the same. Some years ago, there used to be a gap. The managers and the employees of the same company should eat the same food, drink the same water, and take care of basic needs at the same place.

Then, when the employees propose to use new machinery, if it can truly help to improve labor productivity, we will approve immediately and make purchase orders despite significant costs. We let our employees take part in further education to improve their knowledge and skills.

We take care of the employees by funding renovation of offices and factories so that their workplace is not only beautiful but also large sums of money to buy insurance, repair the cafeteria, toilets, create funds to support the poor, build charity houses, and provide more social welfare services.

We aim to be professional in everything we do, even in the smallest activity and at the farthest place where no one would notice. At this stage, we are investing a lot and gaining almost no profits. All the revenues have been reinvested, and we even added another VND 160 billion to carry out our plans.

How does the human resources transformation process take place?

We screen out, then classify and reassign staff members to the right jobs. Those who have made mistakes are given opportunities to change themselves. We also add new elements to the workforce, which are experienced workers with progressive thinking and great problem-solving skills. These new elements will lead the whole system to operate more effectively in modern ways.

Do you think the restructuring at this stage has been successful? What are some evidences for that?

At the beginning, we anticipated that a system reorganization that would take place over one to two years, but now it’s been just seven months and all the basic changes have finished. The LEAN process, originally intended for only one production line, has been implemented successfully on multiple lines. Employees work fewer hours but their income remains the same. There are many other positive results that the staff themselves can experience, we directors do not need to say.

Our conception of investment is always for long-term, sustainable development, in which quality makes difference. We say no to speedy investment, using fraud and violence. This is also what makes customers have their trust in us. They say they are very assured when doing business with SG3. This is a huge asset of SG3.

Quotes:

The goal of development for SG3: solidarity and unity to bring benefits to both individuals and the community.

Customer-oriented values: Cooperation and sharing of common goals for mutual benefits and healthy development.