During the trip, they took time to have a detail review of the functioning of the Finance Activities and Department in Vietnam, get to know members of the Finance team here and also to get an overview of Vietnam market for ABB. It focused on the competitors' landscape, what are the growth potentials, how the Region as well as the Group functions can support ABB in Vietnam in increasing orders in Vietnam and other business areas.
The first and main course went around Finance topics. In general, they commented on a positive note about the growth ABB in Vietnam has achieved in its business in the last few years. Mr. Schoenenberger also observed that the Group's impression on Vietnam has had a positive change in recent years. He also lauded the efforts made by the team in streamlining processes and achieving good results in last ABCR audit which was carried out in Nov/Dec 2014. He also said that ABB in Vietnam has come a long way in proving their capability in product quality and in executing projects improvements by collaborating between different LBU/Divisions by bundling offers like Nui Phao.
In his message to Finance team, Mr. Schoenenberger mentioned his expectation that Finance, Controlling and IS should work as a business partner, understand the business well and support in their decision making process. He pointed out that Finance and Controlling had the responsibility to guide business in adhering to the highest standards of ABB guidelines and procedures. He also emphasized upon working as a team and getting fun in whatever we do. At ABB in Vietnam, he could feel that this team is fun to work with each other!
In the business and operation of ABB in Vietnam presentation, both honored guests were shown the overview and development of ABB in Vietnam, which brought in the involvement of market outlook as well as different projects that ABB in Vietnam has delivered. The sales and bidding processes and the importance of support from ABB units outside of Vietnam were also discussed. Mr. Schoenenberger was involved in the Market Study which was done in 2008 and he had a few questions about that study and how it related to our present estimations. After the presentation, he explained what the region expects from ABB in Vietnam, and also reviewed the company's strategy to 2020.
On the business front, Mr. Schoenenberger emphasized the fact that business would now need to look beyond EBIT to Net margin. Also, more and more focus would be on Demand Order, Earnings per Share and Comprehensive Return on Investment as well as on strengthening Internal Control environment.
Apart from that, they also had several meetings with the Management Board. The topics discussed including training and development for finance, report and objectives of Finance Department for 2015 as well as the transformation program and what the department should improve and prioritize.
After meetings, on 26th July 2015 the CFOs had a safety observation tour in SPT and DTR factories. They really appraised the factories facilities, production lines and manpower here, especially Health and Safety areas after the factories visit and employee talks and also recognised the significant developments in ABB in Vietnam recently. They were exciting at the working procedures in our factories. In many corners of each factories they visited, they could find emergency kits. The idea of the kit is very welcomed. It is really useful in emergency in production environment where accidents can happen at any time and a proper and fast aid is necessary before doctors come. They also raised many detailed questions to staffs there about their daily work and satisfied in terms of the working environment.
Moreover, the completed products seem to be quite interesting to them with great size and complexity. They also noticed workshop target and actual work, production plan and time sheet and safety messages on broads in all factories for employees easily understanding and following. The production process is scheduled, which demonstrates the professionalism and well-planned production in order to control inputs and outputs as well as costs and investment efficiency.
After the visit, both of them were very pleased to see the effort of the Finance team in getting long outstanding VAT refund and streamlining the process of refund. They have also appreciated the focus of the team towards Cash, Working Capital management, Country ERP competence development and improving on forecasting quality. They were happy to see that our Finance Transformation Program has already covered all the areas of 2020 Finance Strategy, which will be declared very soon. Mr. Schoenenberger expects Vietnam ABB will do more in terms of capturing more market shares in the growing Vietnam economy. He also believes that ABB has the potential to capture more market shares in terms of Demand Order in the Vietnam market. He hopes to see more significant developments of ABB in Vietnam in his coming visit in the near future.
