General Director of Zamil Steel Vietnam: Vietnam a highly attractive market for investors

What are your thoughts on the development of Zamil Steel and other Middle Eastern businesses in Vietnam? Specifically, since the meeting between Prime Minister Pham Minh Chinh and Zamil Group leaders in 2023, what progress has been made in the Group’s business activities in Vietnam?

2023 marked a turning point in Vietnam-Gulf relations, with high-level visits and growing business ties. Zamil Steel, a Vietnamese subsidiary of Saudi Arabia’s Zamil Industrial, exemplifies this progress. A leading pre-engineered steel building brand in Southeast Asia, Zamil Steel has operated in Vietnam for over 27 years.

Its two factories produce 102,000 MT of steel buildings annually and have completed over 7,000 projects globally. During a recent visit, Zamil Industrial pledged to further invest in Vietnam in 2023-2030, highlighting the country’s strategic importance for the company. Zamil Steel’s success is a model for Middle Eastern businesses in Vietnam, and recent diplomatic events signal a rising interest in the region. We anticipate a surge of Middle Eastern investments in Vietnam across various sectors in the years to come.

What opportunities for growth do you think the Vietnamese market offers Zamil in particular and other businesses from the Middle East region in general? What advantages does Zamil hold as the first company from the region to invest in Vietnam?

Vietnam’s rapidly-growing economy has been experiencing annual growth of approximately 7 per cent, making it one of the most dynamic economies in the world. Its strategic location within the prosperous ASEAN economic region and stable political environment make it a highly attractive market for potential investors, offering a range of opportunities across multiple sectors.

As one of the leading steel building manufacturers, Zamil Steel has been quick to recognize the potential of the Vietnamese market, exporting its first steel buildings to the region in 1993. It was evident at that time that the Vietnamese construction industry held significant development potential, leading Zamil Steel to invest in its first factory, at the Noi Bai Industrial Park in Hanoi in 1997.

As the only Saudi Arabian company operating in Vietnam at the time, Zamil Steel received extensive support from the government and local ministries and departments in implementing investment on schedule and according to process.

Over its 27 years of operations in Vietnam, Zamil Steel has consistently received support from the governments of both countries in resolving operational issues, and has also benefited from Vietnam’s FDI attraction policies. This has enabled the company to expand its business and, in 2008, to establish a second factory at the AMATA Industrial Park in southern Dong Nai province, creating over 1,000 jobs and becoming one of the largest pre-engineered steel building manufacturing enterprises in Southeast Asia.

Could you elaborate on the challenges and obstacles that Zamil has encountered during its operations in Vietnam, and the corresponding adjustments the company has implemented to overcome these difficulties?

Zamil Steel has been operating in Vietnam for over 27 years and has observed significant changes within the market. The pre-engineered steel building industry, including Zamil Steel, has encountered various challenges in recent years, primarily due to the Covid-19 pandemic, global geo-economic-political situation, and the shift in the post-Covid supply chains.

These obstacles have made it arduous for businesses to maintain a balance between profit growth and ensuring product and service quality as well as project timelines. To address these challenges, it is imperative to continuously improve production processes and adopt new technologies in production management, supply chain management, and cost optimization.

At Zamil Steel, our team is dedicated to delivering high-quality products and services while ensuring seamless project progression. Our focus is on balancing profit growth with customer needs, while ensuring top-notch product and service quality. We are committed to executing our projects with utmost professionalism and delivering high-quality products and services to our clients. We believe that by continuously improving our production processes and adopting new technologies, we can successfully navigate the challenges posed by the current market and emerge stronger.

How do you evaluate the current economic situation in Vietnam, and what are your predictions for Vietnam’s economic prospects in the future? Furthermore, could you provide insight into the Zamil Group’s current business activities within Vietnam?

The economy of Vietnam is currently thriving, and this trend is expected to continue into the coming decade. In 2023, FDI in Vietnam increased 32 per cent against the previous year, particularly in supporting industries, processing industries, and advanced industries such as chip and semiconductor component manufacturing. This indicates that the investment influx in Vietnam is still on the rise, leading to robust growth in the industrial real estate sector. For Zamil Steel, we can leverage this opportunity to expand business operations, explore new markets, and acquire more customers.

In today’s world, there is an increasing focus on sustainable and green development. As a company that values innovation and progress, Zamil has undoubtedly made changes to their operating methods to adapt to these new standards and regulations. Can you speak to the changes that Zamil has implemented in their operating methods and how these changes have contributed to the company’s sustained development?

Green growth is a novel approach to economic development that numerous countries worldwide are currently embracing. This approach not only yields economic benefits but also fosters sustainable development by ensuring economic efficiency while preserving natural resources and ecosystems. In Vietnam, the government has formulated several national standards and regulations pertaining to green growth.

By conforming to these standards, businesses can carry out production and commercial activities while actively participating in environmental protection, conserving raw materials, utilizing renewable materials, and mitigating greenhouse gas emissions. At Zamil Steel, we are committed to developing a production and commercial model that aligns with sustainable development objectives. Our aim is to lower carbon emissions, achieve green production-consumption, and establish a net emissions target of “0”.