Dreaming big, thinking big of a 7X businessman after a historic project
Báo Dân trí•20/02/2024
(Dan Tri) - The honest sharing of a Vietnamese businessman with Dan Tri reporter about the aspiration to make the country strong, the big dreams and big thoughts of Vietnamese businesses, and the story of nurturing the young generation...
Nguyen Trong Khang's story with Dan Tri reporter is his honest sharing about Vietnamese businesses in their aspiration to make the country strong, the story of businesses dreaming big, thinking big, and nurturing the young generation... A strong and prosperous country needs businesses that dare to dream big and think big. What is your perspective? - Talking about a strong Vietnam, I think it is clear that anything related to technology requires long-term, systematic investment; the most difficult thing is where to find the resources to invest. If we are determined to do it, we will have many opportunities. In our company, besides determination, we must have a systematic, long-term strategy and the ability to master many core technologies. As you know, MK Group focuses heavily on cards and biometric authentication, which can be called the field of security, identification, and banking transactions. Recently, we have participated in several public transport projects in Hanoi and Ho Chi Minh City for elevated railways, metro systems, ticket cards, etc. and a series of other technologies. There are 3 pillars that we are developing. The first is the citizen identification project, the electronic passport project of Vietnam. Approaching the banking market, we account for 80-85% of the bank card market share. Recently, 4 years ago, we made cameras, which was very difficult. The camera market is very harsh, dominated by big companies, especially Chinese big companies. Participating in this segment, we chose the new generation of AI cameras, which means that in addition to the special features of the cameras, we have added algorithms to make them smarter. This field is difficult. When you dare to compete with the world, compete with the largest companies in the world, you need 3 things: determination, resources, and long-term strategy. And that is also our difference. How long did it take you to decide to enter the camera industry, a field you said is difficult, fierce and requires you to compete with "giants"? - We have to consider all our advantages and capabilities. With other types of cameras, mass production is much cheaper, but with AI cameras, we probably have a certain advantage. First, the US has put China's largest camera company on the "special" list. The trade war between the superpowers has been simmering for a long time. It is much more difficult for Chinese technology companies to access AI chips than before. Second, they are very limited in the market. Currently, in addition to the difficulty in exporting to the US and the West, the US also has actions against suppliers for Chinese companies when cooperating and using this country's technology. That is an opportunity for countries, including Vietnam, if we can master the technology and the market. Here, I want to emphasize one thing: the market. You have good technology but you don't have a market to exploit, you don't know how to go to market, that's also difficult. And when you launch a product, that product must be very unique. The good thing about AI cameras is that if you change the algorithm, this camera can turn into another camera very quickly. Currently, our cameras can read license plates of nearly 40 different countries, with the algorithm applied, 4,000 types of cars can be recognized and distinguished. This type can be applied well in traffic management or police work. In addition, we produce a type of chest-worn camera that can use up to 50,000 templates to hide faces, which means you can put a customer list in it, even put a subject in it to track, or if a car is lost, you can go to each camera to know where the license plate has been, where it went... With AI cameras with different algorithms, when we have our database, we can "communicate" between cameras to form a very smart, very good system. Of course, there is a lot of work to do for this, in terms of database, data compression, even what is processed at the camera, what at the AI box, what at the server, that problem is a completely different problem, and even more difficult. Those are the things that need to be done. That is the opportunity. I think the opportunity is very clear. If we go in that direction, even the applications around it will be much smarter. Currently, cameras in China, just in terms of management algorithms for public transport, have 650 algorithms, which means they are all automatic. For example, if the green light or red light is broken, the camera will immediately notify, or if there is a traffic accident, the nearest emergency or police will be notified to the scene, it is not difficult, it can be done. When we have a database of biometrics, this application is very widespread. Especially when the AI camera processes everything at the edge, that is, it processes right at the camera instead of running to the center. If we can deploy digital signatures, then every civil act, transaction between people and the government will be much more convenient. This is a good direction but also difficult. Doing this is very difficult and we invest a lot in this field. Opportunities, as you said, are there, but there must also be certain challenges and difficulties, right? Have you ever anticipated that you would clearly win in many areas, you would use capital to invest in new areas full of challenges, without knowing how it would be, so would you worry about losing money, failing? - I agree with that. When I do something successfully, it does not mean that what I do will continue to be successful. But I see clearly that everything I do is the foundation for development, building something. In business, it is related to time, place, harmony, and luck, although of course you cannot rely entirely on luck. We always strive to do that and so do I, always striving to do the best I can, fighting with all my might to achieve different goals. I do not think our business has reached any point of success, that is, not to the point where we rest on our laurels. That is also the story of small dreams, big dreams in each person's life. In fact, for many Vietnamese people, some get "stuck" with that when they think "well, that's already a lot of success". In China, there are about 10 camera companies with revenue of about 1 billion USD or more. The biggest one has revenue of more than 10 billion USD. But the ones with revenue from 100 to 300 million USD are about a few hundred businesses. I think that if you know how to do it, you know how to go, then there is a chance, even a big chance. So what is knowing how to do, knowing how to go? - From my experience, I think that if you can do a formula like this, you will definitely succeed: how to make 30-40% of the domestic market, the rest is export, what is abroad and what is domestically always complement each other. A domestic company can be successful but cannot be brilliant. Therefore, you must be a global company, with international elements. I really hope that from the war between China, the US and between the AI development trend, the AI camera industry will develop. My opportunities and those of foreign companies are the same. For example, 4 years ago, making an AI camera hardware was too complicated. I went to many factories and I saw that foreign companies had a lot of good technology and at this moment I thought "ah, it turns out I can do it too". I visited a company in Taiwan with a revenue of about 300 million USD, I have to say that their factory is not as good as ours. And when we have a foundation, from this camera we move on to making another camera, making another product, attaching something else, it is very different. There is one point that I want to emphasize here is that when making products, we are very creative, always creating special products. For example, body camera products, worn on the chest for police, law enforcement, transactions between customers and suppliers, we use it to integrate the reading of citizen identification. When the police need to check someone, the chest camera turns into a reader, what's more special is, I researched and discovered that this is one of the first AI cameras in the world to do that. The first time I put an AI chip into a camera for a body camera, I was the first company to do that. Maybe I am late but I think of something special to make a difference, to be creative and these differences create very good value. I am not afraid of being a latecomer because being late can sometimes make a big leap. Vietnam can make the M6 reader no different from Western technology companies, and is looking for and wishing to cooperate with technology companies to cooperate in production and export to foreign countries. He shared a pretty good formula, which is 30-40% domestic, the rest is export. A company that only focuses on the domestic market can never be very successful. After all, who doesn't want to be successful in business, who doesn't want to go abroad. But is everyone successful? Is it related to the problem of dreaming big and thinking big of Vietnamese people? Why can some people do it and others can't? - I think the foundation of each person's thinking is different. People who travel a lot, study a lot, have a network of friends everywhere will be different from people who only focus on the domestic market. The way of working is the same, people who work in technology and people who go into sales will be different. In Vietnam, because the size of the market in the past and recently may have changed, but the perspective of Vietnamese businesses is still at home anyway, so they feel quite comfortable and successful in the country. I've told this story before. A rich Indian friend asked me, "How much do you plan to build your company?" At that time, my sales were only 2-3 million USD, so I said, "I want to build a company worth 20-30 million USD." My friend immediately said, "Why don't you build a company worth hundreds of millions of USD?" He asked, "Where do you plan to sell?" I said, "Sell in Vietnam." He said, "Why don't you sell to the world?" Obviously, I was still studying abroad in the US at that time, but my thinking was just like that. But during the development process, I clearly saw that the company had grown to hundreds of millions of USD in revenue, exporting to many countries in Japan, Europe, factories in Brazil, Ethiopia, etc. Traveling constantly, developing partners everywhere, then developing new industries, expanding new networks of relationships will also create a different foundation for you, a different mindset. Saying that to clearly see the current global economy, if a market is only limited to a narrow scale, then it will always be the same, you will do it on a smaller scale. It is always the same, if you do it on a small scale, your costs will not be optimized. With the same resources, if you can do it in large quantities, then you will be very successful. Obviously, the young generation today can change. But the previous generation is like me, most people still think more in a domestic direction. However, there are companies, like FPT Software for example, I have witnessed for many years that they go very fast and are very focused. Last year they exported 1 billion USD worth of software. A Vietnamese company that has done it to such a level abroad, bringing in such a cash flow, that is a very positive result. I really want Vietnamese companies to look at a larger market, with an international scale, then the level of Vietnamese people will be raised very high. Well, instead of setting ourselves as number 1 in Vietnam, let's set ourselves the goal of being number 1 in Asia. Obviously, to do this, we need resources, so where and how the resources come from is very important. But besides resources, perhaps it is also timing? - Yes. There are many things that are decided too early that are not good. We have also encountered. So timing is very important. I would also like to share that in addition to making AI cameras, we also participate in the defense industry. I have been paying attention to this field for many years. The defense industry is my passion for technology, defense technology is the pinnacle of all types of technology, so it involves many very interesting things. MK Group's approach is also different, it is impossible to invest in research and development from the beginning. We have just bought 2 companies, yesterday we closed another company, making it 3 companies, and will add another one soon. With 4 companies that master core technology, we will be able to do a lot of things for this country. Back to the story of 30-40%. In 2023, South Korea exported 12 billion USD of defense equipment, Türkiye also earned several billion USD, so in addition to mastering technology, it also greatly increased the size of the country. In the past, the world was very open, people thought that if you didn't have it, you could buy it, but the recent world situation shows that we need to be self-reliant in capacity, if we depend on technology, it will be very difficult to develop. We are trying to participate in an international military exhibition at the end of this year, introducing some "made in Vietnam" products. That is also a new direction, an important pillar for the company to develop. Before, we planned to become a 100 million USD company, now we plan to become a 1 billion USD company, so the way to go and the direction are very important. I also hope to have luck, without luck, we cannot succeed, I hope to have luck at the right time for it to take off. The fields we are working on are all related to digital transformation. Regarding digital transformation, MK Group has recently invested in 6-7 technology companies in Vietnam, with 500 engineers outside, we invested 30-40% and created an ecosystem where many brothers can participate, go abroad with us, work on projects with us, share new technology with us. That is also an opportunity for us to create a playground for a slightly later generation. I am 7X, now my company has a director born in 1994, that is creating new opportunities for brothers to develop together. You say it sounds simple, but behind it must be a long story, like MK Group's acquisition of a South African company, for example? - Actually, the South African company mentioned above is not the first foreign company we bought. Five years ago, we invested in a Brazilian company, then invested in the US, invested in Singapore, last year we built a card factory in Ethiopia, or worked with foreigners, went to the Japanese market, Japan invested in us... All these stories have been done for many years. Perhaps the story of international cooperation is MK Group's DNA, it is not new. What is new here is a different approach. Before, we bought a company to sell our products. We built a factory, we brought our technology to sell in their market. But now we solve one problem: we buy a company, that company has a market, has technology and the approach will be different. There are probably some challenges. That said, I personally cannot grasp all the technology, so I have to use people, individuals, and organizations with expertise. For example, we recently recruited a foreign employee who was formerly the general director of a very large military corporation in South Africa. He was one of the first engineers to make the first South African missile, and later on, he worked for many large companies, and his network of relationships was very wide. He was also the vice president of the South African Defense Industry Association. Now he is my advisor. We pay hundreds of thousands of dollars a year, very expensive but very worthwhile. Actually, we have been using good human resources for many years. For example, in the smart card field, I have the best people in the world to do those things and I need to do those things (pay high salaries - PV) to get those people. The other day, we also successfully negotiated an engineer who is very good at sales. If you have a product, you need a salesperson, but selling in this field is very different from other industries. We also clearly define MK Group's market as developing countries. We really like crowded places, crowded markets, for example Indonesia, Myanmar... coming up next is Egypt or Ethiopia. Africa is a potential market but also has certain difficulties. Geely, a Chinese company, bought Volvo from Sweden. By chance, I know the CEO of Geely and heard the story of why a Chinese company bought Volvo and they are very successful now. They gradually transferred all that technology to China. Now, mastering technology is like that, in addition to drawings, it is also mastering people. Buying drawings, sometimes we don't know what to do, but the problem is people. Then we have to change our vision. Before, we produced in Vietnam, Vietnamese technology, then we exported, now we are in the middle of managing new organizations, new cultures, new people, we manage all foreign personnel, how to motivate, how to exploit our strengths and theirs, how to master all that technology, this takes a long time and requires certain resources. As you can see, we are currently in the investment phase, but with the sensitivity of a human being, I see that we will definitely succeed, it is impossible not to succeed. Just now you talked about trying to do everything so that not only the 7X generation but also the 8X, 9X generation and even younger can inherit and access, it makes me think of the story 2-3 years ago you shared that you were very worried when seeing the majority of young people sitting around "chatting" about hundreds of millions of dong, billions of dong, recently even getting into virtual money, wanting to work and make money right away like driving a Grab motorbike taxi. What about now? - With Vietnamese culture, young people receive great attention from their families, giving them education, and personal development. I'm the same, having children means worrying about everything. But I clearly see that culture determines a lot. If culture makes us forget our roots, chase after immediate things (even though after all, everyone has to live), and think short-term, it will be very difficult for you. I think 3 years ago and now, things seem very different. Cryptocurrency is down, the stock market is down, everything is not as people think, so people also have to learn those lessons. So sometimes I think that I have to let life teach me, stumble to see. This trend of young people is not only in Vietnam. I went to some countries and it was the same, a part of young people in Japan, China... are the same. When life becomes faster and more competitive, there is a group of people who seem to only want to make money quickly, leading to high-tech crimes, this crime, that crime... Back to the problem, there will never be an end to such groups of people, but what is eternal, what creates value, those people need to contribute to that chain to have value. And if someone does not create their own value, then they themselves have eliminated themselves from the opportunities they should have received. Vietnam has a great opportunity, reform, innovation, creativity, development. Meanwhile, there is no place with international relations as extensive as Vietnam. When developing like that, we have a very large space to develop. So how should we orient the younger generation?- It must be said that today's youth are much better than us. At 20 years old, they speak English fluently and use technology very well. But what is needed for people like that is how to become an international workforce. If you are at the international workforce level, you will naturally have to be different. It is difficult to just hang around coffee shops all day. Short-term opportunities to make money will eventually run out, for example, driving Grab, those are very short-term. All things like virtual currency cannot be banned, but let people try. I think about how to teach young people to be determined, so that they can think in a legal, long-term way to make money. But I have faith in young Vietnamese people, they have a very good entrepreneurial spirit. It looks like that, it fails like that, but sometimes hanging around coffee shops, they can think of something. If Vietnamese people are determined, they can do it. The main thing is to create a "healthy" environment, not just a normal environment but the whole society. When society's perception is positive, it is very important. If people think negatively, they will be negative immediately. But if a society is very positive, people will also be good, people will improve, and do much better things. I don't think I am criticizing that group of people. Because in fact, society will have these people and those people. Everyone wants to make money quickly and it is not bad if it is legal, but often making money quickly is risky. You should always think like this: I am not better than them, I have to put myself below, I have to make an effort, that's what young people should be like. The Vietnamese people's arrogance is also a problem. After doing a little bit, they think I'm the best in this, I'm the best in that. When you put yourself in the position of the best, you probably don't want to learn anything anymore, don't want to do anything anymore, you always think you're good. For example, when we study, some people say I'm very good at studying, but studying well doesn't necessarily mean I'm good at doing things, so we have to experience and encounter reality. As for young people, first of all, they need a university degree, even this degree is the easiest thing to get, to enter life. Secondly, Vietnamese people have quite fierce egos. Recently, I attended a business honoring ceremony, businesses were advised to cooperate with each other. But the big ego makes Vietnamese businesses not accept each other. And if they don't cooperate, it's very difficult to go out into the world together. The more they go out into the world, the smaller they feel. I see real opportunities but when I look at them, I feel so small, sometimes I feel lonely because just saying that Vietnamese technology companies going abroad is very few, very few. Regarding the youth, I think we don't need to worry too much about that. The main thing is that we create a positive, friendly environment, a learning environment and a positive, clear legal foundation, which will motivate many people to succeed. Vietnam has many opportunities. Now with a computer, webcam, many people can make money. So to bring technology into life, we need to communicate, change the mindset, for example, that small citizen ID card is just an electronic key for electronic transactions because the goal is to identify. Even for the people, this communication is very necessary. Thank you!
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