While the pandemic is firmly in the rearview mirror, its impact on the global economy and the overall business landscape remains a consideration to this day. For Mohsen Sabet (Class of Global EMBA 2021, COO of VT Industrial Technology), the lessons he and his team learned during the past three years have shaped the course of their current business strategy and client relationships. It also gave them the push to take VT global.

We sat down with Mohsen to ask him about his leadership of VT's initial expansion out from its sizeable base in Wuxi, Jiangsu province. It's a bright new chapter for the company and for Mohsen personally.  His time with CEIBS Global EMBA may be coming to an end, but the application of its lessons couldn't be more relevant as VT takes this ambitious new step with a view to becoming a leading global player in the automotive tooling industry.

Mohsen Sabet
COO, VT Industrial Technology
Global EMBA 2021

01 From Canada to China – From China to the World

“It's been nearly 10 years, and it has gone fast, as things usually do in China!” Mohsen explains, recalling the last decade of his life and career in China. Prior to his arrival in China, he had cut his teeth in the tooling industry at one of Canada's top-tier mechanical engineering firms. His roots go deeper than that, however, as his father owned a manufacturing company of his own, meaning that Mohsen grew up appreciating the value of things one can make with their own two hands.

“When the opportunity to come work with VT in China came up in 2014, I had very little idea what to expect. But I took a chance, I visited, I took in a few different cities and what struck me immediately was the dynamism of the place. At the time, the industry in Canada wasn't looking much beyond its own borders, but here, I saw customers and collaborations coming in thick and fast from all over the world. I knew this was the right place to be,” Mohsen says.

Committing to China turned out to be an easy decision for Mohsen, as he joined VT at a very exciting time. Given control of a small operation, but one that came with rapid growth potential and a highly capable and loyal team, Mohsen oversaw key operations that would lead to the company's successful IPO and entry to the Shenzhen Stock Exchange (SZSE) in just three years.

“The team were just amazing,” Mohsen recalls, “they gave their all, every day, to see us reach our goals. This was my first taste of China's working culture, and I could see that the vision was there. We wanted to grow the company, and everyone wanted to be a part of that journey. It was appealing for me to stay and commit to that.”

02 Breaking the Mold – Pandemic brings Pain Points and New Possibilities 

When it hit, COVID was a shock to VT's system. With 98% of its business coming from overseas, the initial confusion and uncertainty represented a clear threat to the company's operations and long-term viability. However, with a combination of transparency and willingness to adapt, Mohsen and his team were able to turn this "Black Swan" event into an opportunity to deepen their customer relationships and overall trust.

“Clients used to come visit us all the time; it gave them a sense of reassurance and clarity. Then, all of a sudden, they simply couldn't. Rather than letting them look elsewhere, it pushed us to think: how can we encourage trust in a Chinese company when our overseas clients can't come and see for themselves?”

The answer lay in the targeted but enthusiastic adoption of communications technologies that let VT's clients receive the same level of transparency they enjoyed previously, but without having to make the long flight over. Mohsen's team took advantage of the capabilities of smart glasses and advanced cameras, “so we could literally walk our customers through what we were doing on the workshop floor as well as in the office,” he says. In addition, VT went to great lengths to reassure clients that they were aware of their pain points, and that they wanted to get through this challenging time together.

“Wherever possible, we tried to be as flexible as we could. Contract terms, logistical schedules – we let customers know that we understood the uncertainty they faced, and that we wanted to split the risk with them. We kept communicating, we kept collaborating to help each other out and give each other the breathing room as we navigated our way through the pandemic. Ultimately, we gave customers our trust and it was repaid; they wanted to keep working with us when they saw our attitude.”

Today, even though China's borders have reopened, the 'new normal' for many of VT's clients works better for them than the old system. While saving time and money that was otherwise spent in physical travel, their customers feel that VT offers them sufficient oversight and transparency through the remote channels established during these difficult years. 

03 China +1 Provides the Push to go Global

The COVID years may have built additional trust and rapport for VT with its customers, but it also brought into focus a long-standing concern for many MNCs and major industrial concerns – overreliance on China as a supply and logistics hub. Regardless of China's enduring strengths in these areas, companies of every sector were looking in earnest for viable alternative locations that could give them the reassurance of a 'China +1' supply chain model. 

The need to diversify supply chains has, in turn, pushed VT to diversify its own holdings, as Mohsen explains.

“As a supplier, we want to be seen as a global player, not purely a Chinese one. It's the right time to take this step because it widens our options. We want to have overseas bases and assets on the ground so we can ensure quality and always directly support the customer in that location. That way, they see us as having all the strengths that China offers – reliable manufacturing capabilities, great innovation ecosystem, etc., – but also the ability to provide bespoke solutions to them directly, without needing to use go-betweens.”

The goal is to eventually position VT as a global leader in tooling for premier automakers in Germany and US, as well as other key OEM countries further down the line. To begin with, the company is acquiring a factory in Germany and has established a startup solutions provider in Austin, Texas. These are just the first steps in 'planting the flag' in these two critical territories. 

“It's a very exciting new chapter. Now I'm finishing my journey with CEIBS Global EMBA, I feel I have a lot of takeaways I can apply to this new phase of my company's development and global aspirations. I can take the knowledge I've gained of China's culture, its growing influence and the trends that shape its economy and use them to help my overseas colleagues make VT the global leader it deserves to be. Now that we are directly invested in the EU and US, the geopolitical side of China's development is far more relevant to us. We need to understand China's place in the world economy and political scene because it can affect us quickly and deeply, posing challenges and opportunities.”

04 Want to Build a Career in China? Bring an Open Mind and two Open Hands 

Looking back on almost a decade working in China, Mohsen feels that the characteristic that has served him best from the outset is openness. He speaks eloquently about the depth of team spirit he has found in all his VT colleagues, regardless of their position and function within the company. As a foreigner coming in to lead Chinese teams, he feels that his successes are due to understanding what his teammates have to offer and putting them to best use, rather than imposing pre-determined strategies from above.

“Having an open mind is essential. But you also have to actively show your team that you're open to their suggestions and the way they operate. Because you will encounter cultural differences and without that openness, you're never going to establish trust. Conversely, establish that trust early on and you will see it rewarded. In China, if you make a great team, at whatever scale, you're creating an army that will always go far for you; they'll give it everything they have to see your vision realised, because they will believe in that vision too.”