“The trade name does not come naturally but it is generated and built up in a long progress that demonstrates determinations and methods of its owner. Trade name is not simply a given name but it is the result of product quality and corporate prestige,” said Mr Nguyen Tuan Anh, General Director of Ut Xi Aquatic Products Processing Corporation (Utxico), in an interview on branding to reporter Duy Hanh.
Apart from product quality and business reputation, what are other factors that shape the success of Ut Xi?
Ut Xi Aquatic Products Processing Corporation is mainly involved in aqua-farming and aquatic product processing for export. The company has a good business foundation. The founder of Ut Xi has worked in the fisheries sector for over 40 years. The development process of Ut Xi Company started from a small purchasing unit, which then grew up to a wholesaler and supplier of raw materials for processing factories in the region. Hence, Ut Xi holds huge advantages in experience and raw materials.
From that foundation, Ut Xi has very good relationship with farmers. Why didn’t we invest in factories in more central areas like Soc Trang City but in this locality (both factories and head offices are located in Tran De district)? This is because we want to stay close to material sources.
Ut Xi was set up in 2002 as an aquatic product processor but its processing factories started operations in 2004. At present, the corporation has two modern processing plants. Besides, Ut Xi has intensively invested in modern synchronous machines and equipment, highly skilled workforce to strengthen the trust of customers. Most officials of the corporation are young and progressive. All these factors have built up the current status of the corporation.
How has the corporate restructuring improved the performance of Ut Xi?
Confronting difficulties in 2008, Ut Xi decided to reshuffle in 2009. Thus, we quickly revived in 2009 and rode out difficulties then. The corporation’s sales soared to US$62 million in 2009 and US$84.6 million in 2010.
We have 5-year business plans and 10-year business plans but our immediate target is to earn revenues of US$100 million and employ 2,500 workers in 2015. We will continue investing in aquaculture because raw materials play decisive roles in stable operations of processing facilities.
Ut Xi is a leading shrimp exporter in Soc Trang province and Vietnam as well. Would you be kind enough to tell your corporation’s branding activities in export markets?
Currently, most of revenues of aquatic exporters come from foreign markets but none of them have built up their brands overseas. In spite of the fact that many studies, discussions and seminars on overseas branding have been organised, I think it is very difficult to see a Vietnamese leading seafood brand in foreign countries in the next three years.
At present, we are depending too much on foreign brands. In reality, the brand of a foreign company is very valuable, estimated at hundreds of millions of US dollars, while a Vietnamese brand, including its factories, is valued dozens of millions of dollars. Thus, the brand development in such big markets as Japan, the United States and Europe is not easy. Presently, most Vietnamese exporters have to use brands and packages of foreign partners. The information about Vietnamese exporters is possibly the origin of products. This is our major concern. As an exporter, Ut Xi will have solutions for branding development on global markets in the coming time.
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Vietnamese
