Kinh Do Co.: Records Stable Growth

Kinh Do Co. Records Stable Growth

Kinh Do is regarded by investors as an important food producer in South East Asia, making on-going improvements to its production line, technology, quality and trademarks.

Continued expansion

Kinh Do has five member companies. Kinh Do Co., Ltd was initially established in 1993 with registered capital of VND1.4 billion operated mainly by agents in Ho Chi Minh City. In 2001, the Northern Kinh Do joint stock company was established, followed by the Southern Kinh Do joint stock company in 2002. The Northern Kinh Do company was quick to conquer the market. In July 2003, after successful negotiations with the Unilever group, Kinh Do bought Wall’s ice-cream enterprise and established Kido’s ice-cream. In just one year of operation, Kido’s achieved a profit of VND9 billion and a 30 per cent growth rate. In 2004, the company established Saigon Kinh Do food joint stock company. Due to changes in  its operating format, Kinh Do was able to increase its capital to VND440.5 billion and the workforce to 4,100 across the five companies.

Kinh Do now has 120 distribution agents with 40,000 retail shops nation-wide. Twenty Kinh Do bakeries have been established with modern machinery and equipment. This number is expected to increase to 100 in the near future.

The Kinh Do trademark has also been expanded to such markets as the US, Canada, Japan and Taiwan.  Kinh Do products are now available in supermarkets such as Wal-mart, Cosco, Sam’club and Albertson amongst others, in over 30 countries. In 2003, Kinh Do exported over 500 shipping containers valued at around US$5 million. In 2004, the company’s export value is expected to rise to US$6.5 million.

Diversified products

To increase its business, Kinh Do has diversified its product range to meet the changing tastes of its consumers. The company has made good business decisions in producing potato snacks, crackers, cookies, chocolate, layer cakes, high quality bread and pizzas as well as Kido and Merino ice-cream. In the future, the company also plans to release a juice range.

Construction projects

In addition to food processing, Kinh Do has also been successful in many construction projects. The Kinh Do-Savico Commercial Centre in District 1, Ho Chi Minh city, is the first of its kind and will soon be expanded to incorporate a 30-storey office and apartment complex. In mid 2004, Kinh Do commenced construction of Hung Vuong Trade Centre, set to open by 2006. Binh Duong high-class villa area was also completed in September 2004.

Famous trademarks

One of the factors of Kinh Do’s success is the development of its trademark. With creative advertising and promotional programmes, Kinh Do has established a quality image for its brand in the minds of customers. Kinh Do has also developed trademarks for each product line such as the AFC soda biscuit, Scotti bread, Sacchi snack and Kido’s and Merino ice-cream brands. Recently, Kinh Do became the sole sponsor of Kinh Do V-League football tournament, the first Vietnamese enterprise in this field. AFC, Scotti and Sacchi brands have also financed competitions for young singers.

Kinh Do has been elected as a Vietnamese high quality product manufacturer for eight consecutive years. In 2004, Kinh Do won the Golden Prize for best quality at the Fair for Vietnamese high quality products.

Long-term strategy

In face of the international economic integration, Kinh Do is transforming its activities into a model of group operation. However, the legal framework of such a model for the private sector has not yet been established in Vietnam. Kinh Do hopes that the issue will be soon solved so that Kinh Do and other private companies can make greater contributions to the economic development of the country. It is also expected that the State will continue to improve the investment environment to make the best use of the resources of all economic sectors, increasing business efficiency in the interests of the whole nation.