GELEX's big move with R&D

By investing 2% of its revenue in R&D in the field of electrical equipment, GELEX is entering the big game by focusing on improving its technological capabilities to increase its competitive advantage in the market.

Take off with a new product.

Recently, CADIVI – a brand of electrical cables belonging to the GELEX ecosystem – launched a line of lead-free (LF) electrical cables that are low-smoke, flame-retardant, and do not produce halogen gases when burned (Low Smoke Halogen Free - LSHF).

This is an advanced solution that meets stringent safety standards and is environmentally friendly. Over the years, investment in product development (R&D) has enabled the company to launch many innovative and safe new products for every Vietnamese family.

Meanwhile, at EMIC Electrical Measurement Equipment Joint Stock Company, the R&D center was established in early 2020 with the goal of developing new product lines, reducing dependence on traditional products, and developing new value chains based on EMIC's technological advantages, resources, and brand.

Besides maintaining and improving the design of traditional products (electronic meters and automatic data collection devices for electronic meters, meter communication modules, etc.) to maintain EMIC's market share, quality, and brand; researching and developing new generations of traditional products; developing a new product line of water meters - a comprehensive solution for the water industry; researching and developing equipment for the fire fighting industry…

This is considered a breakthrough for EMIC after more than four decades of development, transforming the company from a traditional mechanical manufacturing business into a technology-driven company with a diverse range of products.

In its development strategy, GELEX identifies R&D as the key to a company's success or failure. Thanks to investments in R&D, GELEX's member companies all possess reputable brands and products that are leading in the electrical equipment industry.

Leading the trend with new products that are superior in quality, impressive in design, and safe for life, GELEX has affirmed its position with strategic products, while gradually expanding into foreign markets.

According to the 2024 financial report, the entire electrical equipment segment recorded net revenue of VND 21,130 billion and pre-tax profit of VND 2,153 billion, making a positive contribution to GELEX's strong performance.

Breakthrough opportunities stemming from a crucial piece of the puzzle.

The race among manufacturing companies is also a race in R&D. This is considered a key factor in the success of many "giants" around the world .

The goal is to create groundbreaking products with new technical solutions, applying new technologies, adapting to new consumer trends, and bringing significant advancements to businesses.

Singapore, known as a small island nation with no natural resources or large markets, has risen to become one of the world's leading centers for R&D and innovation. Since 2020, Singapore has spent 2.2% of its GDP on R&D, compared to the average of 2-5% of GDP for other developed countries.

Recently, Vietnam's 2025 budget estimates require at least 3% of total budget expenditure to be allocated to science , technology, innovation, and digital transformation, and further increased to 2% of GDP in the following five years. Along with this, there is a focus on transforming the scientific and technological content of products and goods to enhance competitiveness.

R&D is no longer an option but a mandatory requirement for Vietnam to rise to the group of high-tech countries.

Large domestic enterprises not only possess strong financial resources but also have high-quality human resources and management capabilities to implement large-scale R&D projects. The goal is to create breakthroughs, boost the entire domestic value chain, and spread the benefits to the wider economy.

Boost investment in R&D.

Therefore, in its development strategy, GELEX has identified the need to strengthen R&D activities to develop new product lines with high intellectual content, environmentally friendly green products, and to expand international cooperation and technology transfer.

In particular, with its strategic development plan until 2030, GELEX aims to become the leading investment group in Vietnam, a symbol of Growth - Efficiency - Sustainability.

Mr. Nguyen Trong Hien, Chairman of GELEX Group, emphasized the importance of investing adequately in the development of high-quality human resources and talent, science and technology, research and development, and innovation, based on encouraging member companies to allocate up to 2% of their revenue to research and development in the field of electrical equipment.

"The corporation is strengthening its internal capabilities and technological infrastructure; proactively and selectively applying new technologies, digital initiatives, digital transformation, and leveraging data from the artificial intelligence revolution," Mr. Hien shared.

In addition, the partner ecosystem strategy (major domestic and international partners) will continue to expand into the fields of electrical equipment, digital infrastructure, and telecommunications, aiming to participate in the global value chain; expanding and upgrading product segments/industries with higher added value and proactively receiving and mastering technology from international partners, thereby boosting exports.

Therefore, R&D not only creates a competitive advantage but also demonstrates social responsibility, optimizes resources, and minimizes environmental impact. Even more importantly for GELEX, R&D is not just a growth strategy but also a mission to contribute to elevating Vietnam's position on the global industrial map.

Source: https://tuoitre.vn/cuoc-choi-lon-cua-gelex-voi-rd-2025032010403391.htm