The journey to become a “miniature Foxconn” of Vietnam

Choosing supporting industry as the spearhead in the journey of more than a decade of development, CNCTech has established a wide ecosystem with a “made in Vietnam” supply chain.

Up to now, CNCTech has become a supplier of products in the supporting industry, logistics industry, logistics services and warehousing industry on a large scale for a series of FDI corporations from 15 countries around the world. The scale of personnel expanded to more than 2,500 people working at CNCTech’s offices, branches and factories spread across the country. Its business results has always achieved a stable annual growth rate of over 20%.

From the support factory…

13 years ago, a group of newly graduated engineers from Hanoi University of Science and Technology, chaired by engineer Nguyen Van Hung, established G7 technology solutions company – the predecessor of today’s CNCTech Group.

Starting with CNC machines with monthly rental payments, G7 cherishes the dream of creating a brand “made in Vietnam” in the potential but still relatively new supporting industry in the country.

Anh Hùng bàn về công nghệ với anh Nghị công ty HP

Chairman of CNCTech from the early days of establishment.

In 2010, CNCTech opened its first factory in an industrial park in Binh Duong. “During the time of the global economic downturn, many businesses narrowed their production and human resources, but at that time we were still quietly determined to invest in factories and train skilled workers to wait for the right opportunity.” Mr. Nguyen Van Hung – Chairman of the Board of Directors of CNCTech Group recalls the arduous early days of starting a business.

It was a bold move when the company decided to try with difficult orders, which are orders that other companies have refused to the foreign customers. And then that difficult problem gave excellent results above all expectations: Capacity was recognized by customers, prestige was built in the market and the first orders came from big customers like Denso, Toyota, Misumi…

The success of the first processing orders has shaped CNCTech’s business style in the future: pioneering, dynamic, creative, making large-scale and methodical investments to catch new opportunities from the market.

To the "miniature Foxconn" model

In 2018, the outbreak of the US-China trade war created a trend that some manufacturing industries located in China began to shift to Southeast Asiea, including Vietnam, where the geographical position is favorable, the labor force is abundant and at a low cost. Seizing the opportunity, CNCTech continues to expand investment in the core business of supporting industries, with a series of large-scale manufacturing factories located in key industrial zones in the 3 regions North – Central – South.

CNCTech currently owns 5 large factories with synchronous infrastructure, modern equipment and machinery, ready to meet the needs of international orders such as: CNCTech Thang Long, CNCTech Bac Ninh, CNCTech Hanoi, CNCTech Saigon and CNCTech Binh Duong.

CNCTech Thang Long

CNCTech Thang Long at Thang Long Industrial Park Vinh Phuc.

Setting up the CNCTech ecosystem

In recent years, Vietnam’s participation in many free trade agreements, stable annual growth rate of FDI at 10.4% (from 2013 to 2019) has opened up great opportunities for CNCTech to engages in service-industrial real estate with investment and operation activities for leasing factories and offices.

The first remarkable opening is CNCTech Binh Xuyen located in Binh Xuyen Industrial Park (Vinh Phuc province) with a total floor area of 38,590 m², consisting of 7 modern factories, the occupancy rate always reaches 100%. This is considered a complete “piece”, making CNCTech the leading package supplier in Vietnam with a unique and extensive industrial ecosystem.

Up to now, CNCTech’s business area is spread all over the country from Hanoi, Vinh Phuc, Bac Ninh, Ha Nam, Da Nang, Quang Nam, Binh Duong, and Ho Chi Minh City. CNCTech’s head office is located in Thang Long Industrial Park and more than 20 projects are in operation including supporting industry factories, technology industry companies, industrial clusters, factories for lease, and office complex buildings.

In the period of 2016 – 2020, CNCTech has positive growth in revenue, profit, as well as capital and asset size with an average of over 20%, is a partner of more than 200 domestic and foreign customers, in which There are leading corporations of America, Europe, Japan, Taiwan, Hong Kong, China, etc.

CNCTech Thang Long Overview

CNCTech’s bonded warehouse.

According to Mr. Nguyen Van Hung, CNCTech’s sustainable development strategy is to establish a unique closed ecosystem of industrial products and services, both as a manufacturer, as a supplier and as a supplier, providing logistics and warehousing services with a leading scale, like a “miniature Foxconn” of Vietnam.

In Resolution 115/NQ-CP on solutions to promote the development of supporting industries, the Government has set a target that Vietnam will have about 2,000 enterprises capable of supplying. Especially in the context of the Covid-19 epidemic disrupting the supply chain, the strong investment shift cash flow will be an open door for Vietnamese enterprises to invest methodically and take the lead like CNCTech.

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