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For far too long, the building that
now houses the Trang Tien Plaza
mall was vacant and falling into
disrepair – a sorry state of affairs
given its prime location in the heart of
Hanoi, right next to Hoan Kiem lake.
However, Hanh Nguyen recently
pumped nearly $20 million into the
complete overhaul of its façade, while
a further $150 million was spent trans-
forming the interior, creating 112 retail
shops, of which he owns 20.
Hanh Nguyen is a Filipino business-
man of Vietnamese origin. He is cred-
ited with having a large hand in the
mall’s 95 per cent occupancy rate. Over
40 premium world brands such as Louis
Vuitton and Dior are already trading
in the mall, just one month after its
opening. Given the current market vul-
nerabilities and sinking consumption,
Hanh Nguyen’s achievements are all the
more notable.
Hanh Nguyen’s IPP Group has made
its mark throughout Vietnam with a
string of investment projects, including
those in economic zones such as Moc
Bai (southeastern Tay Ninh province),
Lao Bao (central Quang Tri province),
Kim Thanh (northern highland Lao
Cai province), Mong Cai (northeastern
Quang Ninh province) and Tinh Bien
(Mekong Delta’s An Giang province).
Among the projects is the Rex Ar-
cade premium fashion shopping centre
in Ho Chi Minh City’s Rex Hotel and
high-end fashion booths at Vincom-
Eden shopping mall.
Hanh Nguyen also works with the
Ministry of Culture, Sports and Tourism
to promote the brand-oriented tourism
year 2013 programme in Vietnam, to
help the country attract hard currency
from millions of foreign visitors through
selling top brand goods.
Asked why he spent such big sums
on such a tiny market segment as pre-
mium fashion in a newly emerging
economy like Vietnam’s, he said: “I re-
turned to my home country, Vietnam,
and came to Hanoi in 1984. I stood
in the front of the Trang Tien general
department store for a long time and
had an aspiration that one day I could
partake in the renewal of this under-
developed trade centre to bring a new
face to Hanoi.”
Hanh Nguyen and his family left
the country to settle in the Philippines
when he was around 20. He later ma-
jored in aviation in the US and was
appointed as Philippines Airlines’ chief
representative in the Indochina region.
When Vietnam opened its doors to
the world, Hanh Nguyen returned to his
home country where he was able to
meet top government leaders and listen
to their proposed tactics and strategies
for the country’s economic development.
“One meeting with former Prime
Minister Pham Van Dong particularly
impressed me,” he says. “He believed
the overseas Vietnamese community
should play a part in homeland devel-
opment. He told me: ‘Never ask what
the Motherland has done for you, but
ask what you have done for the coun-
try.’ That motivated us to jumpstart in-
vestment plans in the home country.”
His first investment venture in Vi-
etnam involved launching the air route
between Manila and Ho Chi Minh City.
From 1985-1986, the volume of foreign
visitors remained modest as Vietnamwas
not yet fully open to the outside world
and visa procedures were complex.
“I persuaded the Filipino investors
that this would be a long-term venture
and I bet my reputation and a signifi-
cant sum of money on the project,” says
Hanh Nguyen.
The air route has now brought divi-
dends, following a $5 million loss over
the first three years.
In 1995, when the US administra-
tion normalised relations with Viet-
nam, Hanh Nguyen acted as a bridge,
calling for foreign investment. His first
project in southern Nha Trang city
involved exporting bamboo and rattan
items, providing jobs for 8,000 local
labourers.
To date, Hanh Nguyen has been in-
volved in over 30 projects, with a com-
bined value of over $455 million, gener-
ating $580 million in revenue annually
and creating 22,000 jobs.
IPP Group, which was founded by
Hanh Nguyen, operates projects across
the fields of food and drink, service pro-
vision, hotels, tourism, duty-free, and
provides distribution for over 70 per
cent of Vietnam’s global premium fash-
ion and cosmetic brands.
“Doing business, one must have a
long-term vision. Our projects may yet
to have generated returns, but they are
at least bringing jobs to local people
and serving market needs,” he says,
adding that when the tourism indus-
try resumes growth, shopping could be
one of the key factors to lure visitors.
Hanh Nguyen remains uncomfort-
able with being labelled a billionaire:
“I will make strides to truly deserve that
status; I do not want to be a billionaire
just on paper, or a ‘bubble billionaire’.”
In respect to Trang Tien Plaza,
Hanh Nguyen believes it is impos-
sible to recover investments after a
short period; instead, he says investors
should willingly accept losses in the
first few years.
Looking forward, he sees a bright
future for the sector: “My dream of
turning Trang Tien into a world-class
trade centre has come true. In the com-
ing time, I dream of partaking in other
premium shopping mall setup projects
in Ho Chi Minh City. By that time, Vi-
etnamese people will be proud of their
Jonathan Hanh Nguyen, president and chief executive officer of Imex Pan-Pa-
cific Group (IPP), was one of the key architects behind the launch of Trang Tien
Plaza, the latest of his many major development projects. By Vi Quan.
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