CIMAS 10 Years Looking BackSUPPORT - CÔNG NGHỆ VIỆT .,JSC
2000-2010 Vietnam Economy Overview
In 2000, Viet Nam’s economy almost escaped from the social-economic crisis. The structure of the economy shifted positively from agriculture to industry. Agricultural weight in the economy reduced from 38.7% to 24.3% while industrial & civil weight raised from 22.7% to 36.6%. With advantages of high population density, abundant materials, cheap labor cost and open Foreign Direct Investment (FDI) policy, Vietnam was turning to become a promising destination to foreign investors.
For the period from 2000 to 2010, Viet Nam targeted to double its GDP and accelerate industrial growth rate by 13% ~ 14%. Industry and civil weight were targeted to account for 40%-41% of GDP and industrial exports weight to account 70%-75% of total export. With an aim to obtain the set up goals, Vietnamese Government focused on the development of all economic industries, of which, strongly geared up the building and development of top prior sectors including energy, petroleum, gas, chemical, fertilizer. Their by-products such as petroleum refining, petrochemical processing, gas processing were also emphasized with the same priority.
The tendency of Vietnam’s Economy in 2000-2010 promised to bring about the blooming of energy, refinery, gas and chemical manufacturing industries in the market. They could be assumed to play active roles in the socio-economic development of Vietnam and other countries in the neighbor. With these advantages, Vietnam was regarded as a delicious cake that attracted so many foreign investors. The picture of a country with simple industries will surely be changed in the coming years when giant engineering corporations which would helped to eliminate the poor industrial infrastructure and build up new modern facilities with great capacity jumped into Vietnamese market.
Status of Local Engineering Firms in 2000
At that period, there were around 150 to 200 local engineering companies in Vietnam and most of them focused on civil and architectural design for transportation and civil project. For those large-scale industrial projects, especially in the field of chemicals, petroleum and gas, local companies entirely lost their competitiveness against foreign companies and only played the roles as sub-contractors for them. These foreign companies often kept a symbolic representative office in Vietnam. Once they won a contract, they usually implemented the contract abroad and employed local engineering companies to execute a part of works for the purpose of lowering the cost.
CTCI Group’s Global Ambition
For the past ten years, CTCI Group had successfully established subsidiary companies in Thailand, Malaysia, Mainland China, and would keep expanding to other parts of the world. With the supports of these subsidiaries, CTCI has considerably lowered its cost. These subsidiaries would help penetrate local markets, take advantage of local resources and increase their chances of wining project internationally.
As mentioned above, with plenty natural resources and cheap labor cost, the industrial business of Vietnam was evidently a potential market to be discovered. Regretfully, local companies were not experienced and competitive enough to compete with foreign companies. Consequently, they lost their opportunities even within their territory. Being aware this situation, CTCI believed this investment would bring bilateral benefits to both sides.
The joint investment for CIMAS company was decided very quickly in the autumn of 2000 after few summit meetings among CTCI, Vietnam Machinery Erection Corporation (LILAMA) and Sincerity Engineering Company Limited (Sincerity). The registered legal capital at the establishment time was USD1.9Mil. and was all contributed in cash. The stake of CTCI makes up 50% in the company, while LILAMA of 33% and Sincerity of 17%.
The company name CIMAS is the combination of the names of its 3 major shareholders: “CI” in CTCI, “MA” in LILAMA and “S” in Sincerity. This combination reflected the expectation that CIMAS would become a powerful company as their parents companies.
On March 28th 2001, CIMAS was officially granted Business License from government authority. Then it came to series of busy days to CIMAS pioneers leaded by CIMAS 1st General Director Mr. Steven Chang. As a results of vigorous efforts, CIMAS Grand Opening Ceremony was successfully launched on July 14th 2001 in HITC building under the witness of 50 CIMAS employees and hundreds of distinguished guests from local and overseas.
10-Year Development Review
Heavy duties were put on the shoulders of CIMAS management team and employees because they should fulfill the technical training in the shortest period to be capable enough for projects subcontracted by mother companies. To prepare for this, CIMAS engineers underwent training courses through dummy projects to on-job training. After that they involved in real projects with experienced experts and drew valued lesson to themselves. They have grown up along with the difficulty and complication of each project.
Foreseeing the upcoming projects, CIMAS BOD set up plan to widen company size. After one year of operation, CIMAS recruited 40 engineers in addition and expanded the office to 800m accordingly. By the end of 2002, CIMAS manpower reached the number of 90 engineers. Under the supervision of CTCI and LILAMA, CIMAS started the design work for projects such as Civil work for Kuo Kuang 480MW CPP Plant, Electrical design for TSC Talin Plant & Na Duong Power Plant, Instrumentation work for ABS Plant, etc.. By the end of 2002, CIMAS was handed over to CIMAS 2nd General Director Mr. Kevin Jen.
During the next two years, CIMAS continued executing projects with the role as an engineering workshop for parents companies such as KMRT R3/R4 Station lighting design, Petron Refinery Project in Philippines, site engineering work for CDI/MDI project in Shanghai, Ca Mau Power Plant. Especially, CIMAS had independently ran some local projects i.e. PhuMy-GoDau 7km pipeline instrument and process design, Ebara Kim Lien & Truc Bach WWT. CIMAS also cooperated with LILAMA to provide engineering services to MC/MELCO for DaNhim Hydro Power Plant revamping works. During that time, deeper professional trainings were carried out in preparation for more complicated work in the future.
2004 was a significant year to CIMAS when it completed the 1st stage of development. It is in 2004 that CIMAS ,for the first time, gained profit after 3.5 year of operation. This small achievement, actually, turned out to be an important milestone and great dynamic for all CIMAS family to move ahead.
CIMAS stepped into the 2nd development stage in 2005 under the leadership of the new General Director Mr. Steve Jean. It was in this year that CIMAS office was, once again, expanded to be enough for a bigger family with total 130 engineers. The “CIMAS” name, step by step, was known by many other partners and clients. Many courtesy visits had been made to CIMAS for surveying its capability and setting up business relation.
In 2006, CIMAS continues expanding its office area to more than 1,200m2 with 200 seats available. 2006 was also a very remarkable year when CIMAS by itself was awarded the 1st EPC project with contract amount up to USD5 Million for Garment Textile Factory Phase 1 by PHI Co., Ltd in Hai Duong. For financial view, this was also the first year CIMAS exercised profits dividend to its three shareholders.
From 2007, CIMAS gradually shifted its role as an engineering workshop of parents companies to another role as an independent partner to execute engineering work through vertical cut instead of horizontal cut as past years. Some projects executed by CIMAS in this year such as Polysilicon Project, AN&MMA project, Saudi Kaiyan EO/EG project had been awarded good comments from the clients. CIMAS kept profitable this year and part of its profits was extracted to increase its legal capital in 2008.
Year 2008 reflected the gloomy picture of a world-wide financial crisis. Like many other companies, CIMAS had to cope with numerous challenges. CIMAS BOD and staff together pulled all energy and resources to create internal power and overcome this uncertain condition. Thanks to that endeavors, CIMAS still successfully completed its first 2 full-scope engineering projects i.e. D-HDS plant project and RFCC plant project with high quality & good progress. While redundancy was seen in several companies outside, CIMAS manpower continued to increase to 194 employees. Above all, CIMAS still earned profit against the general hardship situation of the economy.
Under the leadership of the new General Director Mr. Paul Yang, CIMAS passed 2009 with the determination to turn local crisis into its own opportunities. CIMAS marked its capability improvement by independently and successfully performing the full-scope engineering works for RFCC project and CPC No6 Naptha Cracking project.
CIMAS entered year 2010 with the target of re-organizing company, improving capability and moving ahead as an EPC Contractor. CTCI dispatched a new technical Deputy General Director, Mr. Ting-Kuo Li, executed the PMI (Process Management Integration) training and guided CIMAS to apply the ERP and MIS. Besides strengthening engineering capability through executing of two big projects CPC No6 and Alkylation, CIMAS was also awarded two EPC projects: Vung Ang Thermal Power Plant and CSVC Project. CIMAS has won the trust of customers and gained the growing reputation in the field of engineering. Moreover, CIMAS already completed two important works in this year: revised and upgraded SOPs and obtain ISO 9001:2008 Certification, which are regarded as two key factors to consistent CIMAS business with global standards.
Year 2011, Mr. Paul Yang handed over the General Director to his successor Mr. Ting-Kuo Li. CIMAS will celebrate the anniversary of ten year development. Looking back past 10-year achievement, the management team and employees of CIMAS can be proud of company growth thanks to their endless endeavors and devotion during these years. CIMAS would keep focusing its services categories on engineering, procurement, construction and project management for refinery, petrochemical, power, infrastructural and environmental projects and turning its vision “To become a leading internationalized provider of engineering services in Vietnam” into reality. Entering the next decade, CIMAS will spare no efforts to become a designated partner of many companies and strengthen its dominant position in Vietnam.
Technical Training in CIMAS
The business field that CIMAS operates is quite new in Vietnam market and requires high technology as well as specializing profession. Therefore, a newly graduated student or even an experienced employee who has never worked in this engineering field fails to meet the requirement at CIMAS. The knowledge that a student acquires at university is just the background for the future work and non-related experiences are inapplicable to projects at CIMAS. In other words, suitable software, modern technology and specialized experiences needed for the operation of work at CIMAS can only be got when being trained by technical experts and involving in these practical projects.
It can’t be denied that technical training plays a vital role to the sustainable development of CIMAS company. Without technical training, CIMAS engineers are unable to master and control the work. Moreover, technology is changing overnight. If CIMAS employees do not keep equipping themselves with updated technology, they will be left behind and fail to deal with current work. Therefore, technical training is not only a must to newcomers but also a critical requirement to experienced engineers. CIMAS engineers never let themselves stop keeping pace with the change of technical development over time.
What is the value of an engineer after they are equipped with technical training at CIMAS? The longer an engineer stays with CIMAS, the higher value he owns. As a child of CTCI, CIMAS engineer is not only trained in CIMAS office by CTCI experts who are assigned to CIMAS for special training, CIMAS engineers are also mobilized to CTCI headquarter and other subsidiary offices to study and work with foreign experts. The knowledge and skills they obtain, therefore, are updated. They can share with each other the most effective and useful technology needed for work. Each CIMAS engineer, who has ever been trained in CIMAS is valuable asset if he or she is put in a position of any company operating in the engineering field.
People are CIMAS most valuable assets
At CIMAS, people are esteemed as its most valuable assets. CIMAS’s success is mainly contributed by hardworking and devoted staff members. CIMAS always puts top priority to make a family-like home for all members which allows everyone to work and develop their career together in harmony environment
CIMAS’s current MP of 200 employees is four time higher than that of the early establishment date. In parallel with the qualitative increase, the quality of CIMAS task force has been upgraded and strengthened. CIMAS always creates favorable condition for employees to fulfill individual Development Plan (IDP). Besides cultivating talents, CIMAS will ceaselessly upgrade its policies to retain employees stay long with CIMAS.
CIMAS believes that the expertise, creativeness, and contributions of the staffs are the core factors for further development and success of the company. To retain talented people for the company and fulfill its commitment on its staff, CIMAS always treats its employees with respect, fairness, and encouragement through proper communication, incentive plan, and rewarding policies.
The following Milestones and Achievements are the bright and significant reflection of CIMAS 10 –Year Development
Important Milestones and Achievements
|2001 ~ 2003||Engineering Workshop|
|2004||Obtain Break-even Point|
|2006||Sign 1st EPC Contract (US$5Mil.)|
|2008||Start to execute full-scope engineering projects|
|2009||1st Capital Increase|
|2010||Re-organization to EPC Contractor|
|2010||Obtain ISO 9001:2008 Certificate|
|2010||Application of MIS & ERP system|
|2011||2nd Capital Increase|