HIDAJournal 2012 SPRING No.2

12/18

HIDA Journal No. 2 ● SPRING 201310The last company reported on is VINA KYOEI STEEL CO., LTD. (VKS). VKS is a joint venture established by KYOEI STEEL LTD., MITSUI & CO., LTD., MARUBENI-ITOCHU STEEL INC., and VIETNAM STEEL CORPORATION. The company’s head office and factory are located in Phu My 1 Industrial Zone in Ba Ria-Vung Tau Province, approximately 80 kilometers southeast of Ho Chi Minh City.VKS has taken risks and played a pioneering role since it was established in 1994, deploying cutting-edge equipment at the initial phase of its operations, when Vietnam saw an expansion of demand for steel. The company also dispatched dozens of its employees to Japan in the initial phase of setting up the company and starting factory operations, and during the subsequent phase of further enhancing the technical levels of its operations so that it could provide high-quality steel bars and wire rods. Most of the training was provided by AOTS (currently HIDA).Two employees from VKS participated in the management training course provided by HIDA in November 2012, which prompted us to visit VKS and talk with Deputy General Director Osamu Narumi about VKS’s policy on human resource development. We also asked the two participants about what they learned in Japan. [Date of interview: December 20, 2012]First, please explain what business VKS is in.VKS is a joint venture established by KYOEI STEEL LTD. (headquartered in Osaka City), MITSUI & CO., LTD., MARUBENI-ITOCHU STEEL INC., and VIETNAM STEEL CORPORATION, mainly manufacturing and selling steel bars for reinforced concrete. 95% of our customer base is domestic and mainly includes local Vietnamese companies. We have deployed the latest equipment from Japan since our foundation and enabled our engineers and operators to learn Japan’s superior operational skills to manufacture and sell high-quality products. As a result, VKS has been well-known in Vietnam.You used a program provided by AOTS (currently HIDA) to train your employees when you established the company.Yes. Our company was established in January 1994 and our factory started operations in January 1996. Throughout this period, we dispatched 33 employees in total, including engineers and operators, to a half-year training in Japan and made them learn operational skills. On that occasion, we utilized the program by AOTS to enhance their communication skills with Japanese staff. We once again leveraged the program by AOTS between 2001 and 2002, when we dispatched a total of 40 employees to Japan for their continued skill enhancement.Do you think dispatching employees to Japan is an absolute necessity to let them obtain technical skills?Of course sending our employees to Japan is the only way for them to learn about technology that is not yet deployed in Vietnam. However, even if that is not the aim, I think it is necessary for our employees to be trained in Japan so that they will understand their manufacturing philosophy, which forms the basis of the technology.I always tell my team that knowing something and understanding it are two different things. Making our employees understand technology requires them to go to Japan and understand the manufacturing philosophy behind it. If they grow further, they will reach a higher level and be able to teach the technology to other employees.What prompted you to dispatch Mr. Nguyen Hoang An and Mr. Nguyen Thanh Le to the management training provided by HIDA this time?The training was in line with the theme the two employees were working on, but the main reason we dispatched them to Japan was to help them understand the essence of Japan’s manufacturing philosophy. They learned fundamental skills during the start-up phase of our company and received subsequent follow-up education, but 10 years have already passed since then. We should give continual training to 【VINA KYOEI STEEL CO., LTD.】Location: Ba Ria-Vung Tau Province, Vietnam (Phu My 1 Industrial Zone)Established: January 1994Capital: USD 20 millionEmployees: 254 (as of December 31, 2012)Description of business: Manufacturing and sales of steel materials (steel bars and wire rods) used for constructionFrom left: Deputy General Director Osamu Narumi, Mr. Nguyen Hoang An, and Mr. Nguyen Thanh LeProducts by VKSExamples of HIDA ProgramsTraining Program (From a Company Dispatching a Trainee)VINA KYOEI STEEL CO., LTD.

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