DOVECO: Raising the Value of Vietnamese Agricultural Products

9:47:25 AM | 13/7/2023

Formerly being a State-owned farm, established in 1955, after 68 years of construction and growth, Dong Giao Foodstuff Export Joint Stock Company has transformed itself into a leading fruit and vegetable processor in the country and gradually affirmed the position of Vietnamese agricultural products in the international market.

DOVECO is set to become a vital link in the supply chain of Vietnamese agricultural products

The company has taken the lead in applying scientific and technical advances to production with modern financial management methods to create outstanding competitive advantages and timely respond to market needs.

Solid foundation

On July 20, 1960, on his honorable visit to the company, Uncle Ho advised: “[You] must make good products, must make Dong Giao a rich farm.” His teachings became a guideline throughout the development process of Dong Giao, from a state-owned farm to today's Dong Giao Foodstuff Export Joint Stock Company (Doveco).

In business, the company strictly adheres to a closed processing system, from planting and caring to harvesting to ensure food hygiene and safety in association with environmental protection. Doveco focuses on investing in advanced machinery and equipment lines imported from the United States, Italy, Japan and other countries to strictly apply international quality standards such as ISO 22000:2018 and HACCP.

In business, Doveco takes the satisfaction of customers and the trust of partners as the operating principle and builds the prestige and quality of DOVECO brand. The company has built an independent and autonomous business mechanism that is highly adaptable to the market; constantly looked for new customers worldwide to globalize its Vietnamese agricultural products. Up to now, the company's market has been expanded and its products have met quality standards in fastidious markets such as the US, Germany, Japan, the EU and Israel to become a leading exporter of agricultural products to the EU market.

With its business strategy, DOVECO focuses on building a highly qualified and capable workforce to catch up with international integration requirements. The company builds a professional corporate culture and dynamic working environment, facilitates its employees, especially younger generations, to approach and interact in the international environment to unleash their maximum competence.

DOVECO’s products have been exported to more than 55 countries and territories, meeting the highest standards of quality and safety

Important link in the supply chain of Vietnamese agricultural products

Following the success of DOVECO Ninh Binh, DOVECO established two fruit and vegetable processing centers in Gia Lai and Son La provinces to meet the growing export demand. While building fruit and vegetable processing centers, DOVECO has constantly expanded the material area across the country. Currently, the company owns a total area of 5,035 ha and cooperates with farmers and cooperatives with over 25,000 ha in the Red River Delta, the Central Coast, the Northwest, and the Central Highlands to grow crops of high economic value such as pineapple, passion fruit, sweet corn, spinach, soybean, litchi, mango and banana. The material area gradually supplies enough inputs for its modern processing plants. DOVECO Ninh Binh, DOVECO Gia Lai and DOVECO Son La factories respectively manufacture 32,000 tons, 52,000 tons and 67,000 tons of products and earn US$68.95 million, US$92.95 million and US$108.95 million of export value a year.

DOVECO’s main export products include passion fruit juice concentrate (24%), frozen pineapple (14.6%), canned pineapple (13.8%), pineapple juice concentrate (25%), frozen litchi (8.5%), sweet corn (3.8%), spinach (3.1%) and other products (7.2%).

DOVECO's export portfolio has been expanded with dozens of canned, concentrated, cold and juiced fruits such as pineapple juice concentrate, NFC pineapple juice, sweet corn, spinach, soybean, litchi, mango, banana, cold pineapple, canned pineapple, concentrated peanut juice, Puree passion fruit and Puree litchi of premium quality to meet the world market demand and consume raw Vietnamese agricultural products.

Currently, DOVECO's products have been exported to more than 55 countries and territories such as Japan, the US, Israel and the EU. The EU is the company's largest export market, accounting for 40% of its output. The runners-up are Japan and South Korea, with 25%, followed by China and other countries with 20%, and the US with 15%. This is the result of the "bringing Vietnamese agricultural products to the world market" strategy, making DOVECO a leading producer and exporter of Vietnamese fruits and vegetables.

Besides, in the domestic market, DOVECO's products have been present in most supermarkets, small and large, and occupied a large market share (DOVECO’s sweet corn accounts for about 80% of the domestic market share) with annual revenue of VND80-100 billion. In particular, with the DOVECO Mart supermarket system across the country, the company's organic agricultural products are widely distributed, helping minimize counterfeits and knockoffs.

Not only helping raise the value of Vietnamese agricultural products and enhancing its effective operations, DOVECO has also taken the lead in delivering livelihoods for people, not only in the places where the company has factories but also in the society where it desires to build the foundation for building modern, high-quality agricultural production. Currently, DOVECO has 2,600 full-time employees and provides jobs for 23,000 agricultural workers in production-linked areas. In 2022, the company's revenue reached VND2,600 billion, an increase of VND260 billion compared to 2021. The export value accounted for 75% of the total revenue. Thus, this asserted its position in the “club of trillion-dong businesses”.

Mr. Dinh Cao Khue, Chairman of the Board of Directors of DOVECO, said: The trust of consumers, the market and the society is worthier than the titles that the Company has received. DOVECO is striving to become an important link in the supply chain of Vietnamese agricultural products, a bridge between international agricultural markets with domestic traders, producers, farmers and consumers.

With its bravery, intelligence and aspiration to conquer challenges, in the coming time, DOVECO will continue to explore new markets to further extend its reach on the map of international agricultural exports. The company takes technological innovations and financial management to create competitive advantages with more outstanding solutions to meet increasing demands of customers.

“Doing so, the company will continue writing its historic mission in the period of integration and development and bringing Vietnamese agricultural products to the world,” he affirmed.

By Ngo San, Vietnam Business Forum