To develop an enterprise or to build a brand in the market is a desire of any entrepreneur. On a challenging path for brand building, each entrepreneur has to exert his or her efforts to be successful. This can be seen via the development of the Vifon brand, the success of which resulted from great efforts made by enterprises’ leaders when their enterprise is in difficulty.
The Vietnam Food Industries Joint Stock Company (Vifon) was established in 1963 by 14 Chinese-Vietnamese capitalists with first three plants of Vifoinco, Vilihico and Vikainco. Of the three, Vifoinco was the main plant with a common brand ‘Vifon’, specialising in manufacturing instant noodle, confectionary products, soup powder, canned meat and fish. After the liberation of the south, the plant was nationalised in March 1977 under the new name of the Tan Binh Monosodium Plant. In April 1981, due to a shortage of materials and outdated equipment, the plant suspended its production of soup powder and instant noodle. Along with a production cut, the plant had to cut its number of workers, from 900 to 300. The plant was on the edge of bankruptcy.
To overcome difficulties, Vifon decided to invest more in production as it manufactured soup powder and sugar. This helped the company restore its production lines of instant noodle and rice vermicelli. Not until 1985 did the plant begin a stable operation.
Since 1986, the plant has witnessed its most successful development. In that period of time, the company has taken measures to renew its production equipment and technology. It has applied the ISO 9001:2000 quality management system. In 2005, the company was granted the HACCP certificate. Thanks to this, the company’s products have become a favourite choice of Vietnamese consumers while the company has improved its production capability. Accordingly, each year the company produces 20,000 tonnes of instant noodle, 10,000 tonnes of rice vermicelli and 6,000 tonnes of soup powder. The company’s products occupy more than 20 per cent of the local market and have been exported to more than 40 countries and territories. The company’s annual growth rate is more than 10 per cent. Its annual revenues are put at VND 675 billion. Thecompany’s export turnover in 2005 stood at US$22 million. The company now has more than 2,000 workers, whose average income is put at VND 1.8 million per person a month. Vifon’s products have been voted as Vietnam’s highest quality goods for 11 years in a row.
To gain such a success, Vifon’s workers and leaders have exerted great efforts. Nguyen Van Be, general director of the company, said: "It is important that during difficult periods, an enterprise and its leaders should evaluate, analyse and identify reasons, based on which lessons are withdrawn and measures are taken to lead the enterprise to overcome difficulties.”
During its development, Vifon has followed the motto to overcome its challenges and difficulties to find a foothold in the market.
Quoc Hung
Vietnamese
