Quang Nam Food Co. Strongly Developing after Equitisation

3:26:23 PM | 8/7/2005

Quang Nam Food Co. Strongly Developing after Equitisation

Since 1997, after restructuring the production line from canned foodstuffs and vegetables into processing cashews for export, the company has made big profits and become a strong force. Seven years have passed and the production of the company has tremendously improved and developed. In particular, the annual export productivity of cashew is about 500 tonnes, with average annual revenues of about VND30 billion (US$1.9 million). As a result, the company's profits increase year by year, helping to stabilise and improve the living standard of the 650 labourers employed by the company. In particular, the company has provided Social and Health Insurance for the workers, whose average salary is about VND550,000-VND600,000 (US$35 – 38) per worker. The company has also fulfilled its taxation duties with authorities.

 

The financial situation of the company is relatively positive. Capital borrowed from banks, development support funds and other organisations are paid back fully with benefits punctually. This has helped the company strengthen its reputation and build the belief of the banks and support funds in cases of instant need of cash, especially during the harvest, when a large cash flow is needed to purchase adequate crops from local farmers.

 

The long term strategy of the company's produce structure to 2010 is based on processing cashew, other kinds of agricultural products and producing canned foodstuffs for export. In order to increase the scale of collecting agricultural products (and become active in controlling the materials situation), the company has opened a branch in Binh Phuoc province.

 

Apart from collecting cashew from provinces of the East south region, this branch also takes part in the processing process to meet large orders from overseas partners in a timely manner.

 

The branch is also actively studying the price situation of other agricultural products, informing the parent company so that it can plan its future export strategies. At present, the company is planning to build a production line for processing canned foodstuff and vegetables for export while continuing to collect key agricultural products such as pepper and coffee for direct export. The land area for the production line is about 2 ha, with capital of about VND1.5 billion (US$95,540) to be invested in building stores, plant, dormitories and drying yards.

 

In the progress of international economic integration, the trademark issue and its related matters receive attention from the company. The company regularly updates information about its trademark, which has been built on the practical basis of trading to date. Moreover, the company is planning a strategy for building, registering and developing its trademark as well as the whole cashew exporting industry of Vietnam.

 

In the past, the company exported cashew to the Chinese market only, and has expanded to the markets of America, Eastern Europe and Russia at present. With efforts to explore new markets and maintain the existent ones, the company is confident of its output. In fact, while worldwide demand for cashew is increasing while the land area for cultivating the products is getting smaller and smaller.

 

The company has been assigned by the local Peoples' Committee to control and invest in the cashew industry of Quang Nam province. The company is trying to fulfil the goal of expanding areas under cashew cultivation by 300 - 400 ha per year. This policy is also well accepted and supported by local residents and at present, cashew is attracting most of the investment of the farmers in the area.

 

"In the coming time, when the authorities have completed planning the areas for growing cashew, the company will increase its area for cultivating and collecting the precious product. This policy has again helped make the company’s situation stable and encourages development", said Mr. Nguyen Binh Khiem – Chairman of Management Board cum Director of the company.

 

This year is favourable for Quang Nam Foodstuff Processing Import-Export Joint stock Company as the cashew industry is on a smooth path of development, both inside and outside the country. The company has also received valuable support from the local Peoples' Committee in terms of credit formality support, which encourages banks and financial institutions in lending the company funds.

 

In the first six months of this year, the revenue of the company was about VND14.4 billion (US$0.91 million) with production of 246 tonnes; the overall estimated revenue for the year is about VND30 billion (US$2 million) with production of 500 tonnes.

 

The tax paid by the company to the national budget was over VND300 million (US$19,100 million) in the first six months and will be about VND1 billion for the whole year.

 

After equalization, the company has reduced the number of staff and improved the workers’ positive attitude and style in production and trading. Each year, a sum of about VND100 million (US$6,370) from the salary budget is saved through staff reduction. The Company’s management board is committing to adjust salaries to a better level to guarantee the living standard of the staff in the new circumstances of the economy and price. 

  • Anh Khoa

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