From Huaqiangbei to Vietnam Roots: Hongbotong Technology Wins Its First Battle Going Global —— Interview with Li Shibao, CEO of Hongbotong Technology

 In recent years, "Go global or bow out" has become an unavoidable topic for domestic Chinese enterprises. However, how to go global? And how to stabilize after landing overseas? These remain significant challenges for many companies. As early as 2020, Li Shibao, CEO of Shenzhen Hongbotong Technology Co., Ltd., astutely seized the opportunity for globalization within the semiconductor industry. He successfully led the company in taking its first international steps, and now it is firmly rooted in Vietnam. How did they succeed in going global? What were their strategies? Recently, the Slkor (www.slkoric.com) interview team had the privilege of interviewing CEO Li, listening to him share Hongbotong's entrepreneurial journey and the experience of steadily gaining a foothold in the Vietnamese electronic components market.

Li Shibao, Founder of Shenzhen Hongbotong Technology Co., Ltd.

Li Shibao, a post-80s entrepreneur from Puning, Guangdong, hails from the Chaoshan region. In 2007, introduced by relatives, he came to Shenzhen's Huaqiangbei and formally entered the semiconductor industry. In Chaoshan culture, the close ties within families and among relatives often provide crucial support for starting a business. It was within this cultural context that Li Shibao embarked on his electronics venture.

Li Shibao during the interview

Li Shibao stated that Hongbotong Technology (www.seektronics.cn) was founded in 2009. It evolved from a small electronic components stall in Huaqiangbei into a hybrid distributor with extensive experience in electronic component distribution and representation. Over the years, the company has distributed international semiconductor brands including Texas Instruments (TI), STMicroelectronics (ST), Lattice Semiconductor, Vishay, among others. It also represents 14 well-known domestic brands such as Slkor, Kinghelm, Simcom, and SuperChip Semiconductor. Their product coverage spans power supply, medical, automotive, security, power, and industrial control fields.

Hongbotong Technology Office Environment

Reflecting on the early days in the industry, Li Shibao felt he was initially like a "mover," simply "moving" products to customers, giving them whatever they asked for. However, as he accumulated industry experience and recognized the gradual rise of domestic semiconductor brands, he began planning a "dual-track" strategy, adding representation of domestic brands. This transformation not only elevated Hongbotong from a "Huaqiangbei IC mover" to a "technical service provider" and "brand promoter" for domestic semiconductor original manufacturers, offering customers efficient, reliable, and cost-reducing one-stop solutions, but also laid the groundwork for the company's subsequent entry into the Vietnamese market.

Hongbotong's Motto to Encourage Employees

Vietnam was Hongbotong's (www.seektronics.cn) first stop in its global expansion. In 2020, the global chip shortage wave presented their opportunity for internationalization. Due to the tight chip supply at the time, customers became more dependent on suppliers. Chips themselves are highly internationalized commodities with strong universality and standardization. Leveraging their ability to quickly capture information and their strategic foresight, Hongbotong seized this chance to expand into overseas markets. They chose Vietnam first, based on two considerations: firstly, many of their customers' factories had relocated to Vietnam; secondly, compared to regions like India, Vietnam offered a better market environment and more favorable policies.

Li Shibao at Ho Chi Minh Airport during a Vietnam visit

Upon conducting local research in Vietnam, Li Shibao discovered that Vietnam's internet infrastructure was weak, and online data was limited. This posed a significant challenge for foreigners accustomed to digital work. Consequently, the Hongbotong team quickly decided to bridge this information gap by visiting clients, conducting on-the-ground market scanning ("sweeping" the streets), collecting industrial park lists and yellow pages, and attending exhibitions to gather industry directories.

Li Shibao visiting a top 50 global foreign factory


Li Shibao visiting Vietnam's PHENIKAA Group

When it came to truly entering the Vietnamese market, Hongbotong's first hurdle was language and cultural barriers. Initially, they assumed English would suffice for communication, but quickly realized local clients preferred Vietnamese. After trying translation with unsatisfactory results, Li Shibao decided to hire a Chinese individual fluent in Vietnamese and familiar with Vietnamese culture. This decision proved highly effective, yielding immediate results in subsequent exhibition communications.

In 2023, Hongbotong actively participated in the NEPCON Vietnam Electronics Exhibition, using it to signal their firm commitment: "Hongbotong is here to stay long-term in Vietnam." At the exhibition, their Vietnamese-speaking employees excelled, successfully attracting numerous clients to their booth. Compared to competitors relying on part-time university students, Hongbotong's staff not only had superior language skills but were also deeply familiar with Vietnam's terrain, traffic conditions, communication habits, and cultural background. This allowed them to interact with clients naturally and warmly, gradually building rapport and winning their trust.

A crowded Hongbotong Technology exhibition booth

Li Shibao communicating with potential Vietnamese clients at the exhibition

After nearly five years of establishing roots in Vietnam, Li Shibao has distilled his own set of global expansion experiences. He believes talent proficient in less common languages is key, especially in Southeast Asia. Mastering the local language and understanding the culture significantly enhances communication efficiency and client trust. Furthermore, on-the-ground investigation is crucial; breaking down information barriers is essential for continuously expanding the client base.

Regarding brand promotion, Hongbotong adopted proactive strategies. Li Shibao realized that overseas distributors were already saturated in Vietnam. Approaching Vietnamese clients as an "agent" promoting products resulted in higher acceptance. Therefore, Hongbotong prioritizes recommending domestic brands, offering free samples and technical support. They use brochures, videos, and other formats to showcase the strength and reliability of Chinese brands to overseas clients.

Li Shibao visiting Vietnam's Viettel Group

Through these efforts, Hongbotong's clientele quickly expanded from factories relocated to Vietnam to include local enterprises. Li Shibao reflected, "Honestly, we aren't smarter than others; we just entered the market and started planning earlier." Driven by this keen responsiveness and action, Hongbotong has not only succeeded in Vietnam but has also initiated business and achieved preliminary results in Thailand, Malaysia, the Philippines, and Sri Lanka.

Li Shibao with a client from Sri Lanka

Li Shibao and his wife with international clients

Regarding Hongbotong's future plans, Li Shibao said the company will continue its dual-track strategy of representation and distribution, while intensifying efforts to promote domestic brands in overseas markets. He believes that as domestic semiconductor technology continues to advance, the market share of Chinese brands overseas will further expand. Song Shiqiang, General Manager of Slkor, expressed a similar view. He mentioned, "We at Slkor and Kinghelm (www.kinghelm.com.cn) also started in Huaqiangbei. In recent years, we have been vigorously entering the Southeast Asian market, including Vietnam. We hope to combine our leading technology and high-quality products with the strong channels Hongbotong has established, enabling our domestic semiconductors to serve enterprises worldwide!"