Double-digit growth thanks to the own way of enterprises from processing and exporting

VCN - Choosing its own way from outsourcing and exporting, Tan Quang Minh Manufacturing and Trading Co., Ltd (Bidrico) has turned the tables to bring products abroad, making double-digit growth in revenue. Mr. Nguyen Dang Hien, General Director of Bidrico shared about how his business works.
5 “billions of dollar” groups of export products with double-digit growth 5 “billions of dollar” groups of export products with double-digit growth
Coffee exports enjoy double-digit growth in February Coffee exports enjoy double-digit growth in February
Double-digit growth thanks to businesses with unique path in manufacturing and exporting Double-digit growth thanks to businesses with unique path in manufacturing and exporting
  Mr. Nguyen Dang Hien, General Director of Bidrico.
Mr. Nguyen Dang Hien, General Director of Bidrico.

As one of the leading beverage manufacturers in Vietnam that has exported to 14 countries with the strictest standards in the world, what does Bidrico have direction to keep double-digit growth, Sir?

While most industries, including the food industry, face many difficulties in both domestic and international markets, due to rising input prices, Bidrico also suffers from these impacts. However, we choose another way to increase market share and keep growth momentum. Two main factors driving Bidrico's revenue growth are outsourcing and export. These two sectors have grown very well, contributing greatly to the company's revenue. In the first 6 months of 2023, Bidrico grew by more than 24% compared to the same period in 2022 and in July this growth also reached more than 26%.

In the difficult context, we must have our own way to survive, when input prices increase, the cost has been increased, but it is not easy for the food industry to increase prices. For only one bottle of water, if the price increases by about VND 200, the customer will leave us immediately. In a difficult situation, our company finds relationships with foreign enterprises to perform outsourcing, along with promoting exports to new markets.

Regarding technical barriers, recently, some industries of Vietnam such as textiles and garments, leather and footwear... have lost a lot of orders to other countries because we do not meet the requirements of green business standards. Then, enterprises exporting goods to foreign countries must transform themselves to green enterprises. In September, Ho Chi Minh City will hold a conference on green enterprises. In my opinion, in the future, enterprises must also aim for green enterprises, and green products to overcome technical barriers and bring goods to foreign markets. Ho Chi Minh City should reorganize the green business award to encourage enterprises to join green enterprises.

How is the current export processing rate of Bidrico's, Sir?

Previously, Bidrico's export processing rate accounted for only about 15% of the company's overall sales. However, from the beginning of 2023 until now, we have shifted to increase the field of export processing, currently the processing rate of the company accounts for over 25%. Foreign companies that outsource pay close attention to our premises, machinery, equipment, people and standards meeting their standards; they visit our factory many times… it takes about 6 months to close the contract. Currently, Bidrico processes about 3,000 products a month. It is expected that by this September, the company will process about 9 million products.

In order to process for foreign partners, in addition to having machines, factories and premises, the company must create a reputation for product quality and modern production technology. Currently, Bidrico has invested in 12 automatic production lines; exporting finished products under the Bidrico brand name to a number of countries, including China as a new market. Recently, we have signed a contract with a Chinese enterprise and start to perform an export contract with 4 containers a month.

Besides exporting, Bidrico also succeeded in localizing raw materials instead of importing, can you share about this issue?

Previously, Bidrico mainly imported some high-grade raw materials for production. But when it was too difficult, we took into account localization, finding materials from the domestic market instead of importing. For example, some fruit juices, which we had to import from Israel, the United States... The current localization rate is about 40%, which helps us reduce prices, reduce import costs and tariffs..., gradually increase the localization rate in the coming years. In addition, in the near future, we are also considering buying another companies in the food and beverage industry to expand the field of beverage production and export.

In the context of a difficult market, in your opinion, what should Bidrico in particular and enterprises in general do to boost the export of goods?

Currently, the domestic market is going down, so in my opinion the way out for enterprises is to boost exports. Meanwhile, in the European market, they also cut spending and reduce export orders, so enterprises must look for more peaceful markets, markets less affected by the Russia-Ukraine war, for example China, India, Australia... to find the exit. Vietnam has an advantage in exporting rice. But enterprises consider the time to export to avoid selling unfair prices when export prices are rising. Many countries around the world often have recommendations for people and enterprises about agricultural products, to avoid rescuing, planting a lot and then cutting down. Vietnam should also have recommended the people.

In the context that the world food supply chain is experiencing many positive changes, along with the advantages of natural conditions associated with the development orientation of high-tech agriculture, agricultural products and processed foods of Vietnam are present in over 180 countries and territories. However, the world's leading import and consumption markets such as the US, EU, China... are increasingly demanding on the sustainability of products throughout the supply chain. Changes in consumer behavior also negatively affect Vietnamese exporters, especially the trend of increasing demand for products of organic origin. This is clearly a challenge but also an opportunity for enterprises to grasp, research and develop new products to meet current consumer trends.

Thank Sir!

By Le Thu/ Binh Minh

Related News

Enterprises expect to "take off" in 2024

Enterprises expect to "take off" in 2024

VCN - After a period of sluggish business, even continuous decline, many companies have seen optimistic signals in 2024 and have outlined bold plans to quickly return to a growth trajectory.

Latest News

Deep processing increases agricultural product export value: experts

Deep processing increases agricultural product export value: experts

The current proportion of processed pepper products for export stands at a mere 30%, indicating the need for a significant improvement.
Shipping companies are currently charging about ten types of surcharges for goods at seaports

Shipping companies are currently charging about ten types of surcharges for goods at seaports

VCN - The Vietnam Ship Agents, Brokers, and Maritime Services Providers Association (Visaba) has recently expressed concerns that a series of fees and surcharges are unilaterally determined by foreign shipping lines without agreement with customers.
Electronic products are the driving force for export growth

Electronic products are the driving force for export growth

VCN - The export growth momentum in early 2024 is assessed to have a major contribution from all types of phones and components.
Answering many questions for Korean businesses at 2024 tax and customs policy dialogue conference

Answering many questions for Korean businesses at 2024 tax and customs policy dialogue conference

VCN - At the Dialogue Conference with Korean businesses on tax and customs policies and administrative procedures in 2023-2024 organized by the Ministry of Finance on the afternoon of February 29, representatives of leaders of units under the Ministry Finance, General Department of Taxation, and General Department of Customs directly answered in detail questions of Korean businesses related to the field of tax and customs.

More News

Reconfigure the global cashew supply chain to prevent disruptions

Reconfigure the global cashew supply chain to prevent disruptions

VCN - On February 27th, the 13th Vietnam International Cashew Conference officially opened in Dong Hoi City, Quang Binh Province. This event was part of Vietnam's National trade promotion program, organized in collaboration with the Vietnam Cashew Association (VINACAS) and the Ministry of Industry and Trade of Vietnam.
Durian emerging as "golden fruit" among Vietnam"s exports

Durian emerging as "golden fruit" among Vietnam"s exports

Vietnam is striving to further assert its durian export position and join the billion-dollar export industry with the current advantages in hand, coupled with efforts to better the fruit quality. The country is working hard to tap the potential and expand global reach for the sector.
Impression of exports at the beginning of the year

Impression of exports at the beginning of the year

VCN - In early 2024, our country's export activities prospered. Statistical data of the General Department of Customs records many impressive numbers, especially from key industries, markets and localities with billion-dollar growth figures.
Packaging among sectors with highest growth in Vietnam: insiders

Packaging among sectors with highest growth in Vietnam: insiders

The packaging industry, which is projected to expand 15-20% in the next few years, is among sectors posting highest growth rate in the country, experts said at a press conference held in Ho Chi Minh City on February 29 to introduce the 17th International Processing and Packaging Exhibition and Conference for Vietnam (ProPak Vietnam 2024.)
US extends investigations into wooden cabinets from Vietnam

US extends investigations into wooden cabinets from Vietnam

The US Department of Commerce (DOC) has announced the extension of the deadline to issue the final conclusion on the investigation of the product scope of wooden cabinets imported from Vietnam, according to the Trade Remedies Authority of Vietnam (TRAV).
Will Vietnam

Will Vietnam's seafood pass the IUU inspection in April 2024?

VCN - The 5th inspection on combating illegal, unreported, and unregulated (IUU) fishing in Vietnam by the EC is scheduled for April 2024. Localities are focusing on conclusively addressing existing limitations and restrictions, with an emphasis on implementing urgent tasks and solutions, particularly by April 30, 2024.
Fruit, vegetable exports see green shoots, targeting 7 billion USD

Fruit, vegetable exports see green shoots, targeting 7 billion USD

Vietnam’s fruit and vegetable exports in the first two months of this year surged 38% to about 749.7 million USD, which is expected to peak at nearly 7 billion USD this year.
Tra fish leads Vietnam’s seafood exports to strong January growth

Tra fish leads Vietnam’s seafood exports to strong January growth

Vietnam's aquatic product exports saw a strong start to the year, recording a 60.8% annual increase to reach 730 million USD in January, reported the Ministry of Agriculture and Rural Development.
Agro-forestry-fishery trade surplus up nearly 2.9-fold

Agro-forestry-fishery trade surplus up nearly 2.9-fold

Vietnam earned some 9.84 billion USD from agro-forestry-fishery exports in the first two months of this year, representing a year-on-year rise of 50.3%, and a trade surplus of 2.68 billion USD, up nearly 2.9-fold, the Ministry of Agriculture and Rural Development reported.
Read More

Your care

Latest Most read
Deep processing increases agricultural product export value: experts

Deep processing increases agricultural product export value: experts

The current proportion of processed pepper products for export stands at a mere 30%, indicating the need for a significant improvement.
Shipping companies are currently charging about ten types of surcharges for goods at seaports

Shipping companies are currently charging about ten types of surcharges for goods at seaports

Visaba has recently expressed concerns that a series of fees and surcharges are unilaterally determined by foreign shipping lines without agreement with customers.
Enterprises expect to "take off" in 2024

Enterprises expect to "take off" in 2024

VCN - In the strategic report for 2024 just released by SSI Securities Company, experts believed that the Vietnamese economy would rebound in 2024 with traditional growth drivers such as trade, public investment, and growth-supporting policies being the g
Electronic products are the driving force for export growth

Electronic products are the driving force for export growth

The export growth momentum in early 2024 is assessed to have a major contribution from all types of phones and components.
Answering many questions for Korean businesses at 2024 tax and customs policy dialogue conference

Answering many questions for Korean businesses at 2024 tax and customs policy dialogue conference

VCN - At the Dialogue Conference with Korean businesses on tax and customs policies and administrative procedures in 2023-2024 organized by the Ministry of Finance on the afternoon of February 29, representatives of leaders of units under the Ministry Fin
Mobile Version