On June 30, 2011, International Development and Investment Corporation (IDI) officially listed 38 million shares of the Company (approximately VND380 billion of charter capital) on Ho Chi Minh City Stock Exchange (Stock Code: IDI). On this occasion, reporter Quoc Hung talks with Mr Nguyen Van San – General Director of IDI.
First of all, congratulations on the successful listing of IDI. On this special occasion, could you please describe the development process of IDI?
IDI was established in 2003 specializing in farming, processing aquatic products, producing aquatic food, building civil, industrial, traffic and irrigation construction projects and hotel business. Some of our biggest milestones include:
In 2005, IDI started construction of Vam Cong industrial group with a scale of 23 hectares in Lap Vo, Dong Thap province. Till 2007, IDI built No 1 seafood processing plant at Vam Cong Industrial Group and launched the farming zone of fish material.
In 2008, IDI put into operation the first stage of No 1 seafood processing plant with designed capacity of 300 tonnes of material/day and a 4,600 tonne cold storage facility. Also in 2008, IDI supported Trisedco Company, a member of the Sao Mai Group, in starting construction of Tra by-product processing workshop project,
In 2009, we increased the capacity of the No 1 seafood processing plant to 600 tonnes of materials per day. By 2010, the plant reached the capacity of 600 tonnes of materials per day. Also in 2010, IDI started construction of the fish oil refinery with capacity of 100 tonnes of fish oil/day with total capital of VND 300 billion. At the same time, we completed a nearly 6 hectare fish farming zone in accordance with Global Gap Standard.
After 3 years of operation, IDI ranked among the 10 largest seafood exporters in Vietnam in 2010, according to VASEP statistics.
Financial crisis and global recession has become a major challenge for businesses. How does this context affect IDI’s production and business activities?
Like other businesses, IDI cannot avoid the impacts of the financial storm and global economic downturn. However, with our keen actions and efforts, we have maintained the necessary stability in production and business activities. We fully expect that, even in the middle of crisis, IDI will continue to achieve impressive growth and development.
Specifically, in 2010, IDI’s turnover reached VND 974.03 billion, up 38 percent compared with 2009; profit in 2010 reached over VND 91 billion, up by 276 percent over profit in 2009.
In 2011, we target profit of VND 151 billion. In the first 3 months of 2011, IDI obtained profit of VND 24 billion. Our dividend rate in 2011 is estimated at 20 percent.
What is IDI’s strategic vision in the seafood sector in the coming time?
Currently, IDI has diversified our range of products to expand our market share and increase our sale volumes. Besides Tra fish, we have some other products such as anabas, eel, prawn, etc. In the high class segment we will encourage customers to use products with new features of no additives, and products specially packaged for restaurants and supermarkets. For the mass market, we will uphold common products such as fillet, fish cut in pieces and whole fish to utilise the production capacity of our two factories, reducing competitive pressure and increasing sales.
With the aim of increasing the competitive advantage of product quality and cost, expanding market share, diversifying customer networks and creating more stable jobs, IDI has invested in upgrading infrastructure of Vam Cong Industrial Group, making it suitable for building modern seafood plants. IDI has invested in constructing No 1 frozen seafood processing plant, with design capacity of 600 tons of materials/day. The company is now exploiting about 50 percent of design capacity of the No 1 frozen seafood processing plant, earning US$40 million in 2010 and over US$50 million in export in 2011.
Could you please reveal IDI’s development direction as well as its projects in the future?
We have been preparing to implement some important and strategic projects. One of them is the fish oil refinery factory. This project makes use of nutrients from the fat of Tra and basa fish, such as fatty acids EPA, DHA and Vitamin A, D, E; the factory will produce food oil without processing, such as salad dressings, sauces and oils processed with other foods, and nutritional fish oil tablets used in the pharmaceutical industry. This project began construction in March 2011 and expected to put into operation in April 2012 with
total capital of VND 290,87 billion, and capacity of 100 tonnes of materials/day.
The second project is the aquatic feed production workshop, meeting the demand of our farming zone. It starts work in June 2011 and will be put into operation in 2012 with a total capital of VND 100 billion, and capacity of 120,000 tonnes/year.
Our third project is investing in a material zone to increase our initiative in material resources. Our goal is to meet about 40 percent of raw material needs. The project is located at Tan An Hamlet, Tan Long Commune, Lai Vung District, Dong Thap province with total area of 25 hectares. It is scheduled to start construction in May 2011 and completed in November 2011 with total capital of VND 40 billion, fish production capacity is expected to reach 8,000 tonnes by the end of 2012. IDI is preparing to invest in building No 2 seafood processing plant with capacity of 300 tons/day. It is expected to start work at the end of 2011 and be completed in November 2012, testing will be started in 2012 and full operation begin in 2013.
In real estate, we are preparing to invest in Southern Lap Vo Urban Area project at Lap Vo Town, Lap Vo District, Dong Thap Province, with total investment capital of VND147.38 billion, constructing infrastructure, subdividing & selling plots. Total project area is over 23 hectares. Construction is expected to start in 2011 and be completed in 2014, in response to the rapid urbanization rate in Dong Thap province. The construction of Urban Area project in Southern Lap Vo.
Town and other roads, such as National Road 80 and 54, will facilitate economic development; help promote social and cultural development in the Mekong Delta area.
Our next project is Vam Cong industrial deepwater port Complex, located next to Vam Cong industrial park with seafood processing plant, fish paste production plant and fish oil refinery plant. The project will serve import-export activities for the industrial cluster and the whole Mekong Delta area. It also improves the transportation system in the Mekong Delta area, helps reduce transportation costs, improves competitiveness for local products, and reduces pressure on existing infrastructure. The total investment capital of this project is VND 1,500 billion with a scale of 157.3 hectares.
It is expected that by 2020, the area of port land is about 80.4 ha including warehouse, storage, distribution centre, and 2 harbours with total length of 640 metres for 5000 - 10,000DWT ships. Between the main harbours there is room for inland waterway transportation infrastructure, with total embankment length of 1000 metres.
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