Bee Logistics CEO Dinh Huu Thanh: When going out to sea, there is no 'umbrella' that can help

Bee Logistics CEO Dinh Huu Thanh expects that by 2025, Bee's revenue will reach at least 700 million USD, about 17 trillion VND, 1.6 times higher than in 2021.

Every time he goes abroad, 70% of the suitcase that Mr. Dinh Huu Thanh brings back is logistics and management books. “Books are knowledge that previous generations have summarized for us to refer to and think about solutions when we encounter problems. When you have knowledge, you will be very confident in making decisions and building solutions,” said the CEO of Bee Logistics. In particular, according to Mr. Thanh, logistics is a “very hard field, not making money quickly and a lot”. To be able to coordinate each “little” step in the logistics industry into a service product, it requires real knowledge, experience and thinking. Bee Logistics emerged from a tiny company to a top 6 enterprise in the logistics industry thanks to the way it built very valuable solutions in the “turbulent” context of the market in the previous decades.

Working in a foreign logistics company with very good career prospects, why did you think of establishing a private "purely Vietnamese" company when the ability for Vietnamese private logistics companies to compete is very low? During my time working in a foreign logistics company as well as meeting partners, I had to "fight" with the leaders here a lot, because they did not respect Vietnamese people. In 2002 - 2003, when I asked: "Why don't you use logistics services of Vietnamese enterprises?", they criticized all kinds of things. In fact, I see that Vietnamese people are very creative. It may be difficult to be creative or do big things, but in small stages that require meticulousness, we are very good, especially with innovative ideas and developing new processes to better serve customers. I don't like foreigners criticizing Vietnamese people like that, I said frankly: "When you come here to do business, if there weren't Vietnamese people like us, you would never be able to do your job!" At that time, most of the market was in the hands of state-owned enterprises and foreign investors under the guise of investment, and Vietnam was also preparing to join the World Trade Organization (WTO), foreign enterprises would officially enter a lot. So what playground is left for Vietnamese private enterprises? I thought and discussed with some friends, decided to build a Vietnamese logistics company with really good service, named Bee Logistics.

We determined not to compete with large companies when we did not have enough resources. Bee used the warehouse and port infrastructure of large enterprises and was the connector, providing solutions, creating new values ​​to put into the value chain of large companies. It was that simple and in fact, our starting point was also low. The initial capital was 1 billion VND with 6 shareholders. We only had one determination to provide really good services. Our advantage was that the market at that time had not yet developed professionally. Any unit that built good services and maintained its reputation would have the opportunity to show itself immediately. Besides, although we were a small company, from the beginning, we determined to apply information technology. Without money, we bought domestic software - when small private technology enterprises in Vietnam were also just starting to develop software for the logistics sector. Step by step like that, everything gradually developed.

What exactly is the better service that creates the opportunity to “show off” that you just mentioned? We provide all logistics solutions, from sea, road, air to customs services, multimodal transport services… One of Bee’s strengths is the ability to find points in the world and know how to connect those points, connect between types of transport to create suitable solutions for customers. Thus, instead of customers buying services directly from airlines or shipping lines, they buy Bee’s services to get a more reasonable price, enough to meet their needs in terms of time or volume of goods. Sometimes, with a high-value shipment, just being 2-3 days faster or slower for customers can make a difference. Providing logistics services that only focus on price is not entirely effective. “Suitable solution” - I think that is the most important thing. For example, during the period when the world had a shipping company go bankrupt, we immediately determined which customers needed goods, which goods had value, and which had to be released first. Bee was very proactive in coming up with an immediate solution: Cut off the goods from Singapore to Malaysia, then connect the ship from Malaysia. The cost was even cheaper because at that time the Singapore port was congested. Or during the recent Covid pandemic, when we heard that Sri Lanka was opening, we assessed that for a tourist country like Sri Lanka, when they opened, the number of tourists would be very high, the load would be empty, while Vietnam's load was congested, so we chartered a plane to transport goods from Vietnam to Sri Lanka, then from Sri Lanka to other countries. In general, Bee's thinking is always active to think about how to connect transportation systems together, find opportunities to create competitive connection solutions that meet the needs.

So how did you guys make your first product? First, we did the consol service, consolidating small cargo by sea. At that time, the market was very chaotic, the prices were also chaotic. People's habit was to buy at CIF price, sell at FOB price. The buyer kept paying this price, but when they went abroad, they collected differently, and at each stage they collected a little more... We committed to the customer: How much do you pay me for the freight, how much do I pay when I go abroad, and what is your total price. If we were overcharged, we would pay you right here. Bee made the first trip from Ho Chi Minh to Japan, from Hai Phong to the US, Hai Phong - Hong Kong, Hai Phong - Singapore, doing it very well, every step was very clear. From not being able to control the price, now with such a commitment from Bee, customers came in droves. Within 2-3 years, Bee's reputation was very famous.

Why is a business founded by men called “The Bee”? Bee Logistics started out very small. Its greatest strength is the warrior spirit of bees. We also want the team to be united like a swarm of bees, truly passionate and aspirational to build a Vietnamese business that reaches out to the world. That’s right, from the beginning, our goal has been to be a global company. Here, our brothers and sisters work together with the spirit of providing better and better service every day. Bee Logistics’ apparatus does not have many outstanding individuals, but when put together as a collective, I am confident to say that it is the most efficient apparatus among Vietnamese logistics companies. Even the slogan “Be expert in logistics” shows the desire of each person at Bee Logistics to be an expert in consulting, providing logistics solutions with added value to customers, not just providing simple services that anyone can do under normal conditions.

In the past 2 years, the logistics industry has faced many fluctuations, in which logistics costs have increased many times, helping the business results of enterprises in this industry grow very strongly. How do you evaluate this period? The past 2 years for the logistics market have been a screening period. Customers will screen service providers. Any unit that is capable, really open-minded, and comes up with solutions to serve customers will develop very well because while everyone is still wondering, they compete in terms of speed. Whoever is faster will seize the market's opportunities. At the end of 2019, in January 2020, we had already planned a scenario for Covid but did not think it would last so long. And Covid has changed everything about transportation routes, forms, and processes, it has disrupted the supply chain, and means of transport are congested, requiring us to make very quick decisions. With all the difficulties, at that time I just determined how to find solutions so that customers can feel secure, share some risks with them. At that time, of course, this customer will introduce another customer. After 2 years of war-like efforts, I found that everything was not only good but... so good that it was quite difficult to return to that period. It created a hinge to shorten Bee's global development process, although in form, it could reduce and slow down the expansion of offices, but on the other hand, it contributed to improving internal strength, improving our resilience and our ability to adapt to changes in the market. In those 2 years, Bee's staff were tested warriors. We could affirm our position, our way of doing things, our commitment and our reputation. When there is commitment and trust in each other, we can accompany each other for a long time. How is Bee at the present time? Bee is now also in the top 6 logistics enterprises. Actually, if we calculate the consolidated revenue, I would rate it not only as top 6 but even more. Most importantly, the system is expanding every day, currently in Vietnam, the entire system has 23 offices plus 17 foreign offices in 10 countries. The entire system has more than 800 employees.

During the process of changing from a company with only 1 billion VND to become a top 6 enterprise in the logistics industry, have you ever wanted to "give up"? Once in 2017. That was when we were misunderstood as... smugglers. I am from Hai Duong, studied foreign trade in Hai Phong and founded Bee Logistics in Ho Chi Minh City with other founders, simply because in 2002 - 2004, this was the place with the most favorable environment for business. However, because of such "origin", and also due to unfair competition from other units, public opinion appeared with information as if we had committed fraud in business activities and were inspected by the inspection team. Many other tiring problems occurred. I was also discouraged, but I thought that doing business must be difficult. And my difficulty compared to many others was just as small as a grain of sand. There is a truth that if you are not wrong, you have nothing to be afraid of. Just do what is right with your conscience and responsibility. If you give up, you are cowardly. Our dream of building a business that reaches the world is so big that it motivates us to stand up and do it again. After many months, according to the law, we did not encounter any problems, but we did suffer damage to our reputation and money. Much later, when bidding for contracts in the US, Bee still had to explain.

The characteristic of logistics enterprises is that they have to work with the government a lot. People say that they need an "umbrella" to develop in this field. Having determined to expand globally, I think that no umbrella can help. Of course, business people must know how to adapt flexibly to the environment. With the efforts of the Government, the business environment for enterprises has been reformed a lot and thanks to that, companies can now live cleanly. We are also proud to be one of the largest tax-paying enterprises in Vietnam in the top 1,000. Tax obligations are also a social responsibility. When we have not yet contributed to society with specific or great actions, we should first comply with our responsibilities to the State, because through the State, we will help many people in difficult circumstances and conditions. That is my point of view in operating the company. For Vietnamese enterprises in general, of course, if there is a suitable policy to facilitate development, the competitiveness of Vietnamese enterprises is very good. In my observation, what Vietnamese enterprises often lack is great ambition, determination as well as a long-term vision. The logistics industry is a service industry. As a service industry, it requires long-term investment and building motivation, which takes a lot of time. If there is a lack of long-term vision, enterprises will lack investment in people, technology and other conditions to be able to develop.

What will be your goal by 2025? First, we must complete the goal of opening offices in 15 countries. Second, the network system must be connected and increase efficiency. Bee's resources compared to other businesses in the industry can be said to be optimal, but I personally see that there are still many suboptimal points in the system. From now until 2025, I have to solve those problems. I hope that by 2025, Bee's revenue will reach at least 700 million USD, about 17 trillion, 1.6 times higher than in 2021. By 2027, the revenue could be 20,000 billion VND. It's quite heavy, but let's try. At that time, step 1 of the "global" process can be basically completed.

When businesses reach a certain scale, they often like to invest in other industries, such as real estate. What is your opinion? My opinion is that whatever we do, we have to focus on it. When we grow, we will still invest in things related to logistics, that is, within the field where we have knowledge, understanding, and management ability. Moreover, my goal is to build a Vietnamese logistics business that reaches the world. I do not participate in things that I think will not create value for society. Recently, there was an opportunity to do business abroad that could make Bee famous and earn enough money to live for many generations. But we did not do it, because although it did not violate the law, it was not in line with our business philosophy, which is to create a transparent, ethical business that serves customers with valuable solutions. How much money is not important, what is important is that we feel happy and peaceful. My philosophy is that simple. Thank you for sharing this! (According to Market Life/CafeF)

Vietnamnet

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