HIDA Journal 2015 SPRING No.6

18/26

HIDA JOURNAL16World Convention of HIDA/AOTS Alumni Societies Special Edition Examples of HIDA’s Training Programs for Human Resource Development In the Success Story Contest we received numerous case stories of Japanese companies that are working on human resource development for their local subsidiaries through the use of HIDA programs like its training programs in Japan and expert dispatch programs. In this issue we will introduce case examples of companies that are proactively working on “localization” for their local subsidiaries. We will start with the story of Gifu Kogyo Co., Ltd., which introduced its initiatives to date in our Success Story Contest. The company boasts the largest market share in Japan when it comes to formworks for tunnels. It has made use of HIDA’s training programs in Japan and overseas training programs to foster candidates for executive positions at its wholly-owned group companies that have been established in Vietnam and Cambodia, and this training has been achieving results. Mr. Pham Dinh Luat, who attended one of HIDA’s training programs in Japan, was appointed the local director in Vietnam in June 2011, and since then their Japanese local staff have been brought back to Japan and the local subsidiary is being managed solely by Vietnamese people.Head office: 811 Tanokami, Mizuho-shi, GifuEstablished: 1973Capital: 60 million yenEmployees: 200 (as of April 2014)Description of business: Design, manufacturing, and sales of formworks for tunnels and construction machineryManaging a Local Subsidiary Company Solely with Vietnamese People without Local Japanese StaffGifu Kogyo Co., Ltd.Director Luat of Gifu Kogyo Vietnam Co., Ltd. gave a presentation on conducting management solely with Vietnamese people in our Success Story Contest. Please tell us about the sequence of events leading up to the localization.Gifu Kogyo Vietnam Co., Ltd. performs CAD/CAM design on formworks for tunnels and bridges. Our local company’s work when it was initially founded was just being asked to do design work by the head office, but since 2011 the local company has done business directly with Japan and the amount of design work it received from Japanese companies has increased.But we weren’t exactly thinking about managing this company solely with Vietnamese people when we first expanded into the country. We knew that having Japanese staff stationed there imposed enormous costs, but it was only after we actually tried local management that we understood the practicalities of that. Monthly reports that it was in the red began to arrive, and when we looked into the causes of this we found that the expenses for the local Japanese staff played a major part in this. It was natural at the time of the initial expansion into Vietnam that the employees were not skilled in the work and so things were not going well. Therefore we considered two options: continue to assign costly Japanese staff but have them finish their work in a short time period to ensure that the company would not fail, or else entrust this work to inexpensive Vietnamese people and lengthen the amount of time that they can keep working hard at it. Our company chose the latter of these options. The year 2007, when Gifu Kogyo Vietnam Co., Ltd. was established, was prior to the financial crisis at a time when Japan was in a mini-bubble. The engineering works industry was suffering a labor shortage, with small and medium enterprises (SMEs) in particular having a hard time attracting people. So given the circumstances we had to quickly train people from overseas. We held training in Japan in 2005 for the first trainee. Our thinking was that we had to quickly increase the number of people, and so from the outset our plan was to invite trainees to Japan every year.In 2011 the Japanese staff were called back, and following our localization the costs of stationing Japanese people in Vietnam were repurposed for training local people. What is the relationship between Gifu Kogyo Vietnam Co., Ltd. and your head office in Japan like?The head office will tell them to “Grow the company,” but on the local side they are free to determine what they should do to accomplish this. To put this in extreme terms, they are free to do as they please so long as it is profitable. The current deciding factor in their success is the fact that they can make drawings and speak Japanese.Hiring people has also been left up to them. You cannot tell if someone is capable and skilled unless you actually hire them. That being Mr. Luat, Director of Gifu Kogyo Vietnam Co., Ltd., giving a presentation in fluent Japanese at the Success Story Contest

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