Enterprise: ZO GROUP

Chairman: Nguyen Thanh Vien

Industry: Hospitality (Hotels, resorts, tourism)

Year it was founded: 2008

Location: Hanoi, Vietnam

ZO GROUP is a multi-disciplinary organization that mainly focuses on financial investment, real estate, hotels, restaurants, luxury apartments for foreigners and resorts. In addition, ZO GROUP is also an organization that implements projects on information technology, education and training. Besides, ZO GROUP expands the scope of consulting support for setup, and operation management for accommodation business units. Currently, ZO GROUP is developing a business model of hotel and apartment systems for rent globally, focusing on many countries and territories in Europe; Asia such as India, and Nepal; Middle East region such as UAE, Dubai, etc.

GB: Tell us more about the development process of your business

In 2008, we invested in opening the first two hotels in India, Agra and Jaipur, focusing on young guests and experiential tourism. In 2010, ZO GROUP opened the first facility at 7 Hang Muoi - Hanoi following the first Backpacker model in Vietnam. The scale includes 30 rooms and 20 dorm beds.

In 2014, ZO GROUP expanded to hotels in Tay Ho and Ha Long. And after 4 years, by 2018, ZO GROUP has reached the scale of 25 facilities in 7 provinces. Our facilities are in Hanoi, Ha Long, Mai Chau, Tam Dao, Ha Giang, Sapa, and Moc Chau.

ZO GROUP's 25 accommodation facilities are very diverse, from the 3-star hotel segment with 53 rooms in Tam Dao, a 60-room hotel in Hanoi, a 36-room hotel in Ha Long, or a resort villa in Ba Vi - Hanoi, etc.

In 2019, ZO GROUP restructured, establishing the Zo Hotels brand specializing in hotel chain development, Zo Village specializing in resort development and Zo Land specializing in investment and distribution of vacation real estate projects. After rebranding, Zo Hotels developed a hotel with an international focus, starting with Zo Hotels facility in Hokaido Japan, gradually reaching out to the market. international.

In 2022, ZO GROUP participates in the investment and development of residential real estate, industrial real estate and resort real estate with the brand name ZO LAND.

GB: What is the USP of your business? 

The first facility at 7 Hang Muoi - Hanoi is the first Backpacker-style accommodation in Vietnam. With 10 years of experience in the accommodation industry, 25 facilities of ZO GROUP have been present in India and Vietnam. With many years of hotel management and operation capacity, we have many advantages in negotiating and buying and selling hotels at the best prices, 30-40% lower than the market.

We also focus on developing high-quality human resources. Currently, ZO GROUP's staff in Vietnam is more than 150 people, including more than 80 employees working directly at accommodation facilities and 70 office staff, with 5-8 foreign experts directly working in Vietnam. 80% of employees in ZO GROUP have university degrees majoring in management, tourism services and economics. In addition, not only the operation staff, but all ZO GROUP employees have basic English communication skills, some are fluent in Chinese, Japanese, Korean, etc. The human resource goal in 2025 is 250 People. Currently, ZO GROUP has cooperated in training personnel and looking for high-quality Restaurant - Hotel human resources, and tour guides with many domestic and foreign training institutions.

GB: What are some of your major business challenges? 

The biggest challenge is competition. Our business faces a competitive business environment, with many competitors operating in the same industry, especially those that have recovered from the Covid-19 pandemic.

In addition, entering and expanding into new markets can be a challenge for businesses, in the recovery momentum after the Covid-19 epidemic. Capturing the needs and tastes of new customers, building an effective hotel and resort model, and creating a brand image for new customers requires considerable effort and investment, not only in facilities, and human resources but also many other factors.

GB: What is your big business dream?

From 2023 to 2025, ZO GROUP focuses on 4 core activities

1. Develop Zo Hotels hotel chain by merger and acquisition into Zo Hotels hotel chain with inefficient hotels. The goal by 2025 will be to reach 500 hotels in Vietnam and globally. ZO GROUP purchases and participates in operational restructuring for more efficient exploitation.
   
   

2. The second core activity is investing in large-scale resorts, such as a resort project in the village of Buon Me Thuat with an area of ​​​​26 hectares, including resort villas, a 9-hole golf course and high-class restaurants. In addition, ZO GROUP is promoting the implementation of real estate and resort projects in Bac Quang - Ha Giang, Tuyen Quang.
   
   

3. The third core activity is the development of industrial real estate projects in Vinh Phuc, Bac Giang, and Thai Nguyen, because, with the ability to develop international visitors since 2010, ZO GROUP annually welcomes thousands of professional international investors come to learn about investment projects in Vietnam, this is an advantage for ZO GROUP to develop industrial and resort real estate projects.
   
   

4. Finally, developing the international hotel market, attracting investment capital from foreign investment funds. In 2025, our valuation target from foreign investment funds is expected to reach $150 million.
   
   

We have a strategic vision to become the best and most diversified hotel group brand in terms of accommodation types, having a reputation for quality service in Vietnam and in the international market. Besides the head office and 25 accommodation establishments, ZO GROUP has tourism representative offices in Vietnam, India, Japan, Korea, the Middle East, France, the UK, the USA, and Germany. We want to develop the hotel and resort chain to the international market because it achieves 3 things: Proving operational management capacity; Promoting Vietnamese brands and Attracting foreign investment

GB: How do you believe GroBanc can benefit SMEs and entrepreneurs?

GroBanc is a networking platform that has covered many countries. Joining the platform allows SMEs to find new customers with opportunities to do business and expand into new markets. Thanks to GroBanc, besides new customers, we can connect with suppliers from all over the world. In addition, GroBanc is expected to significantly support Vietnamese SMEs and entrepreneurs in the digital transformation process, with appropriate solutions and support for small and medium enterprises.

GB: What is your message to aspiring entrepreneurs? 

The globalization process comes with challenges, as businesses face stiff competition from not only domestic but also global companies. To improve competitiveness, businesses need to have a reasonable strategy, know how to make good use of their strengths and have a plan to overcome their limitations. Business owners should not focus too much on immediate benefits, ignoring core values ​​and ethics, but should focus on bringing real value to customers, employees and stakeholders. Only when they come up with a clear plan that they can achieve sustainable development.

Besides, in the case of Vietnamese enterprises, we do not have strength in technology, so it is necessary to focus on accelerating the digital transformation process and applying technology to business activities to keep up with the development of the world. I hope GroBanc can support them in this journey.

GB: Thank you so much for your time!

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