Vietnamese tobacco for export

Vietnamese tobacco for export 

On the occasion of the 15^th anniversary of the establishment of the Vietnam Tobacco Company, VIB Forum had the opportunity to interview its Director, Mr. Nguyen Tai, about the recent activities and future plans of the company.

Could you outline the recent activities of the company?

In the past five years, the company has shown good performance and continued growth. In 1991, its export value was only US$821,000, it increased to US$3.2 million by the year 2000 and US$4.9 million in the first half of 2004. Productivity in 1991 stood at 0.96 tonnes per hectare, in 2000 it reached 1.7 tonnes per hectare and will continue to rise with adequate support. The company will develop two high-yield and high-quality areas in Ninh Son and Krongpa and will also expand to other areas in order to meet the demand of the local processing industry and the export market.

The company has built a processing factory capable of turning out 24,000 tonnes per annum with an increase in quality and a reduction in production costs. Due to the application of science, technology and improved crop species and assistance to farming households, production output has continued to grow despite a reduction in our areas under crop.

How are you developing your markets?

Our main partners are large corporations such as British American Tobacco (BAT), Dimon, Universal, and Philip Morris. We have expanded our production relations, learned better planting, harvesting and processing methods, and improved our development of tobacco farms. The present markets with an export value of US$5-10 million/year are the UK, US, Singapore, Malaysia, Australia, Sweden, Belgium, France and South Africa. Based on the demands of these markets and clients, the company has improved its farming and processing methods, thereby increasing its exports. The company has also guaranteed supply to the local factories.

What are your plans after equitisation?

In recent years, the company has embarked upon the process of equitisation and the application of the ISO 9001:2000 standard. First, the company will move to industrialise all areas of its production operations. Second, it will increase its output to 24,000 tonnes per annum, raise its working capital by 30 per cent, while at the same time developing other industries to ensure stable growth. We will increase the quality of our products, reduce production costs, gradually substitute imported materials with local products, increase our competitiveness and get ready for regional economic integration.