Vietnam’s fruit, veggie exports likely to exceed 4 billion USD

Vietnam’s fruit and vegetable exports are likely to surpass 4 billion USD this year, thanks to an average monthly growth of over 14 percent.

According to the Import-Export Agency under the Ministry of Industry and Trade, Vietnam earned 2.7 billion USD from veggetable and fruit exports in the first eight months of 2018, a year-on-year rise of 14.1 percent.

China continued to be the largest importer of Vietnamese vegetables and fruits, with a turnover of nearly 2 billion USD, up 11.6 percent against the same period last year.

The country was followed by the US, Thailand and Australia.

The result is attributed to the similarity in demand, habits and consumer taste and close geographical distance between Vietnam and China. However, requirements for product quality of the Chinese market are increasing as the common trend of the world.

The Ministry of Agriculture and Rural Development said it will continue encouraging farmers across the country to replace rice in areas producing low output with other crops of higher economic value such as fruit trees, vegetables or flowers.  

The Ministry will also push the use of high-quality seeds and seedlings along with advanced farming technology in agriculture to improve the value and competitiveness of domestic farm produce. 

Last year, Vietnam’s fruit and vegetable export value exceeded 3.5 billion USD. The sector is striving to reach a year-on-year growth of 10-15 percent this year, or around 4 billion USD.

Property, architecture expo in HCM City     

A wide range of products and services related to real estate, architecture and interior and exterior decoration will be showcased at the Vietbuild International Exhibition to be held in HCM City from September 26 to 30.

The second Vietbuild to be held in the city this year will have more than 2,500 booths, slightly more than last year, set up by over 900 local and foreign companies.

According to the organisers, 288 of the exhibitors are local firms, 126 are joint ventures and the rest are foreign from 27 countries and territories, including the US, Russia, France, Australia, Italy, Denmark, Korea, Singapore, China and Thailand.

They will showcase property projects, electrical equipment, doors and accessories, internal and external decorative items, building materials, solar energy systems, measuring equipment used in the construction sector, and others.

Speaking at a press conference to introduce the exhibition in HCM City last week, Nguyen Tran Nam, a former deputy construction minister and head of the exhibition organising board, said exhibitors have done research to come up with products with new designs and environment-friendly and higher-quality products to meet the increasing demand for housing construction and interior and exterior decoration.

The expo would be a good forum for local and international businesses to meet and explore business opportunities, he said.

Conferences and business meetings will be held on its sidelines.

The expo will be held at the Saigon Exhibition and Convention Centre in District 7. 

PAN Group sells 10% stake to Sojitz for $35 million     

Vietnamese agriculture and food company PAN Group JSC (PAN) has sold 13.4 million shares, equivalent to a 10 per cent stake, to Japanese Sojitz Corporation, the Vietnamese company announced on Tuesday.

At a price of VND61,000 (US$2.62) per share, PAN Group has collected VND817.4 billion ($35 million) from the share sale at a premium of 4.3 per cent to Tuesday’s close of VND58,500.

After the transaction, PAN Group’s charter capital has increased from VND1.2 trillion to nearly VND1.34 trillion.

Early this month, the company’s board approved the plan of offering a maximum of 11 per cent to the Japanese investor at a price of no less than VND55,000 per share.

The funds raised from the sale are expected to help the company carry out its merger and acquisition (M&A) projects. More importantly, with Sojitz being its strategic stakeholder, PAN will have more opportunities to expand its products to overseas markets.

Founded in 2003, Sojitz consists of about 400 subsidiaries and affiliates operating in Japan and throughout the world. It is engaged in a wide range of businesses globally, including manufacturing and trading products and services in various sectors including automobiles, plants, energy, chemicals, foodstuff and agriculture.

Sojitz would share its Japanese technological expertise and customer network as a general trading company, adding to PAN’s existing customer base and local networks, the Japanese company said in a press release.

As part of the new alliance, Sojitz and PAN would also establish a collaboration promotion committee to strengthen the ties between them, it said.

Early this year, it also acquired 20 per cent stake in Rang Dong Long An Plastic JSC and 95 per cent equity in Saigon Paper JSC.

PAN Group, formed in 1998, has been expanding in recent years through M&As. Its current businesses covers seed and cultivation, confectionery and FMCG packaged food products, cashew nut and aquatic product.

The company’s profits have steadily increased since 2014, reaching nearly VND503 billion in 2017, up 49.5 per cent against 2016. Ending June this year, it recorded consolidated sales of VND3.55 trillion and net profit of VND204.7 billion, up 136 per cent in revenue and 66 per cent in profit compared to the same period last year.

PAN Group has increased its ownership limit for foreign investors to 100 per cent. Its current major shareholders include The Asian Entrepreneur Legacy (TAEL) Partners (20.7 per cent), Saigon Securities Inc (13.7 per cent), and NDH Invest (10.8 per cent).

Hai Phong’s IIP soars at the highest rate ever     

The northern port city of Hai Phong’s index of industrial production (IIP) increased 25.15 per cent over the first nine months of this year compared to the same period in 2017.

This was the highest increase since the index has been tracked and is higher than the city’s target, according to the municipal Department of Industry and Trade.

In September alone, industrial production in Hai Phong soared by 32.18 per cent over the same month last year.

Increases in industrial production mainly occurred in industries which apply high technologies such as telecommunications equipment (up by 212.4 per cent) and electronics (up by 56.21 per cent).

Prices of goods in the northern city were reported to rise by 4 per cent over the same period last year.

The import-export revenue reached more than US$6 billion, representing a rise of 25.82 per cent.

Hai Phong is one of the leading destinations for foreign direct investment in Viet Nam.

The city had been focusing on improving the infrastructure system and business climate to attract investments, especially in hi-tech projects such as plants of the RoK’s LG Corporation in Trang Due Industrial Zone, Japan’s Bridgestone’s plant in Dinh Vu Industrial Zone and Vinfast automobile plant of Vingroup.

In 2017, Hai Phong’s provincial competitive index (PCI) jumped 12 grades to rank ninth among 36 provinces and cities.

The northern port city aims to be among the top three provinces and cities on the PCI. 

VN an important market, US pork industry says     

Viet Nam is an important market, the US National Pork Board has said.

“Consumption of US pork here is on the rise, and this trip offers our industry leaders the unique opportunity to get in on the ground floor and build awareness for US pork and pork products with decision-makers,” Craig Morris, vice president of international marketing at the board, said.

He was speaking to the media in HCM City on Monday.

He is one of the officials and key leaders of the US pork industry who are on a 10-day trip to Singapore, Viet Nam, Hong Kong, and Macau to understand consumer preferences and build relationships with buyers, influencers, retailers, and other key stakeholders.

Michael Skahill, a member of the National Pork Board’s international marketing committee, said Viet Nam was the fastest growing economy in Asia, and consumers here were demanding food products, leading to more demand for pork products, including imported ones.

Morris added that the board’s international marketing strategy was to elevate the outreach and increase the number of direct opportunities to promote US pork on a global basis.

“Our time in Viet Nam will be devoted to gathering the critical consumer insights we need to fully tap into the potential in these exciting, unique markets for US pork, like Viet Nam.”

Last year the US exported over US$12 million worth of pork and pork variety meats to Viet Nam. Viet Nam was the second largest importer of US pork products in Southeast Asia behind only the Philippines.

“Consumers in Viet Nam … are rapidly increasing the proportion of pork in their diets, which provides an opportunity to capture a growing share of that consumption pie if we play our cards right,” Morris said.

Jan Archer of the National Pork Board and the executive committee of the North Carolina state Pork Council, said: “It is important to us that Viet Nam will be one of our partners in the future. That’s why we are here to establish a relationship.

“We see Viet Nam as an important market for us in the future.”

Skahill said the US was looking to be a supplier in a few existing segments and not displace domestic pork in Viet Nam or “damage” the business of Vietnamese traders and farmers.

The visitors said that the trade war between China and the US was not the reason for their presence in Viet Nam, saying that US pork producers and traders have partnered with Vietnamese businesses for many years.

Good board key to better business     

International management experience is key to helping local businesses develop. That was the message experts delivered at a workshop held to help build an efficient board of directors.

Held in HCM City on Tuesday, the workshop was organised by the Viet Nam Institute of Directors (VIOD) in cooperation with HCM Stock Exchange (HOSE) and other organisations.

The chairman of the board of directors has a decisive influence on the way the company works, balance and performance of the board of directors. The role of the chairman will become more important than ever in emerging markets, according to the experts.

When a chairman of the board is developing effective action programmes as well as plans of succession, they will create investment opportunities and prevent unnecessary risks.

At the workshop, Le Hai Tra, HOSE chairman, said "Viet Nam needs business leaders with knowledge and skills to help strong growth in the Vietnamese economy and international economic integration."

"For example, the rapid change of the industry 4.0, digital technology and the wave of start-up businesses has created a high competition in investment and business environment," Tra said.

According to Tra, the new investment and business environment requires leaders and the chairman of the board of directors in particular to have talent and wisdom to manage and run the business.

In public companies they are necessary to build a board to maintain continuity and inheritance in business operation.

Regarding to the placement and change of leadership, if they prepare strategy and transfer for the position, they will reduce risks in the context of free trade market.

With experience in consulting for businesses in Viet Nam for many years, Ha Thu Thanh, chairwoman of VOID and Deloitte Vietnam, said board reforms would be necessary to ensure they do the right work and create a more effective and practical value.

"In addition, instead of intervening in the day-to-day running of the company, the board needs strategic direction to help management implement and monitor efficiency in the company’s operation," she said.

She added that businesses could use the board of directors as one of the most powerful strategic tools to promote their investment and business activities.

According to Bob Arciniaga, Founder, CEO and Managing Partner of Advisory Board Architects (ABA) Asia, to build up and create value, education plays an important role. This will create ideas, innovations in daily operations, investment and business as well as strategies in the future, making value of the company.

Kuwait, UAE eye VN goods     

Kuwait and the United Arab Emirates are seeking greater trade and business collaborations with Viet Nam, their officials told a trade facilitation conference in HCM City on Tuesday.

Jasem Abomarzouq, second secretary at the Kuwaiti consulate in the city, said bilateral trade in the first eight months of this year was around US$1.43 billion, up from $350 million during the whole of last year.

Viet Nam’s exports made up only $54 million of this.

Abomarzouq said: “Vietnamese goods such as fruits, frozen fish, rice, footwear, construction materials, and cosmetics have been around in Kuwait for many years. Kuwait hopes to see more of Vietnamese products in Kuwait and other countries in the Gulf Cooperation Council.”

His country has big demand for imported goods such as foodstuff, cars and garment and textiles as well as for foreign workers, which can be a great opportunity for Viet Nam, he said.

The UAE, the second biggest economy in the Middle East, last year imported from Viet Nam over $5 billion worth of goods such as rice, electronics, footwear, textile, seafood, timber, and vegetables.

Viet Nam imported around $562 million worth of goods including minerals, liquefied petroleum gas and petroleum from the UAE, he said.

Thieu Tan Dung of the HCM City Investment and Trade Promotion Centre said there was potential to increase exports of products like rice and seafood.

The UAE was continuing with efforts to diversify its economy by focusing on non-petroleum sectors and open it up, and has struck trade deals with around 50 countries, he said.

Both countries were also pushing for more collaboration in sectors such as energy and petroleum, he added.

Nguyen Thi Ngoc Hang of the Ha Noi-based Halal Certification Agency said Halal certification was a must for exporting to these countries.

Pham Thiet Hoa, director of the centre, said his organisation would assist Vietnamese firms with researching the two markets and organise more networking events for firms in the three nations.

The conference was organised by the centre and the Kuwaiti consulate.

Phu Quoc aims to become special economic zone     

The Phu Quoc administration seeks to make the island a special economic zone, a local official said.

Mai Van Huynh, Chairman of the Phu Quoc District People’s Committee, said to achieve such target the district would continue to review and solicit investment in more projects, tweak investment incentives and preferential policies and streamline administrative processes to attract investors.

Tourism, commerce, healthcare, education, and high-tech agriculture would be the main pillars of socio-economic development, he said.

The district has improved land administration, planning, mining, and environmental protection, and cracked down on violations, Huynh added.

According to the management of the Phu Quoc Economic Zone, the district has 279 potential projects, 215 of them in tourism, 23 in housing, eight each in agriculture, public services and forestry.

The total investment in the projects is worth VND361 trillion (US$15.4 billion)

Of them, 241 involving total investment of VND14.75 trillion ($633.37 million) have received approval with 36 already getting under way.

Phu Quoc is attracting more and more visitors and investors.

Since 2015 it has received 4.7 million visitors, 20.5 per cent of them foreigners. The average revenues from tourism have been increasing by 42.5 per cent.

Pham Van Nghiep, deputy chairman of the People’s Committee, said eight airlines fly to Phu Quoc International Airport and operate 12 international routes to Russia, China, Korea, and Thailand and also fly to Ha Noi, Hai Phong, HCM City and Can Tho.

This would enable Phu Quoc to promote international co-operation and attract more foreign investors, he said.

The island aims to make tourism a key economic sector by continuing to develop eco-tourism, community tourism and others, he said. 

E-payments account for 95 percent of tax revenue

     

Total import-export tax revenue collected through e-payments reached VND191.15 trillion (US$9.2 billion), accounting for 95 per cent of the total tax revenue to the State budget, from January 1, 2018 to September 5, 2018.

The number was reported by the Viet Nam’s government portal (VGP).

As many as 22 banks now provide 24/7 e-tax payment facilities.

The system can be used anytime, anywhere, which help save time and costs for enterprises and ensure immediate goods clearance. Customs authorities are offering support for enterprises to make these transfers and minimise errors.

This should shorten the time it takes to complete customs procedures for import-export activities to the average level of ASEAN-4 countries following the Government’s instructions.

Firms only need a certificate of authority (CA) to transfer money and authorise their banks to pay taxes through their accounts without fees.

Banks unexpectedly drop deposit rates

Several commercial banks have unexpectedly cut deposit interest rates by 0.1-0.2 percentage points per year due to limited credit growth.

OCB this week announced a 0.1-0.2 percentage point decrease on short- and medium-term deposits. Now its rates are 5.3 per cent for one month and 6.8 per cent for six months.

A slight cut, mainly for deposits under six-months, was also seen at other banks such as VPBank and Military Bank.

The move is quite unexpected because over the past two months, many commercial banks have raised deposit interest rates, especially long-term deposits, to prepare to meet the higher demand for capital at the end of the year.

Industry insiders attributed the rate cut to the fact that the banks had already used up nearly all of their assigned credit quota for 2018 so that they don’t need to mobilise capital at high costs. According to regulations, the State Bank of Việt Nam (SBV) sets a credit growth limit for each commercial bank depending on the bank’s health at the beginning of the year.

Lowering interest rates to reduce mobilisation costs is a reasonable solution at this time for the banks, experts said.

Reports from the Saigon Securities Inc shows that banks’ demand for capital had also fallen in the inter-bank market in the past week, helping the rate in the market decline to 2 per cent for overnight loans, 2.38 per cent for one-week loans, 3.15 per cent for one-month loans and 4.03 per cent for three-month loans, down 0.75 percentage points against the previous week. 

Footwear export turnover exceeds US$10.5b in Jan-Aug

Vietnam’s footwear sector in the year up to August posted US$10.53 billion in export turnover, up 9.6% versus the year-ago figure. Last month alone witnessed a year-on-year increase of 10.5% in export turnover, at US$1.4 billion, the local media reported, citing data from the Ministry of Industry and Trade.

The United States is reportedly the main importer of Vietnamese footwear, accounting for 36% of the country’s total, equivalent to US$3.81 billion, rising 13.4% against the year-ago period. Meanwhile, Europe is the second source market, comprising some US$3 billion in total, up 0.6% year-on-year.

The data also indicates that, from January to August this year, footwear shipments to China exceeded US$900 million, up 30% compared with last year’s figure, followed by Japan and South Korea, with corresponding values of over US$500 million and US$300 million.

The general secretary of the Vietnam Leather, Footwear and Handbag Association (LEFASO), Phan Thi Thanh Xuan, said these source markets had made a remarkable contribution to encouraging domestic footwear exports.

According to Xuan, the United States is still the country’s largest importer, while neighboring country China is the main supplier of footwear materials for Vietnam.

To promote the local consumption of footwear products, LEFASO has teamed up with the Domestic Market Agency under the ministry to roll out multiple programs supporting footwear enterprises, such as hosting a conference on demand and supply connections and calling on local firms to join price stabilization fairs, Xuan said.

In the coming days, LEFASO plans to gather high-quality footwear and handbag brands to form a chain and then launch operations in shopping malls, supermarkets and stores. In addition, the association will develop marketing programs to introduce standard products to customers, stated Xuan.
Pork and live pig prices edge up

A temporary ban on pork imports from Hungary and Poland since September 24 has driven up pork and live pig prices in Vietnam. A pig now costs VND73,000 per kilogram, up from VND68,000-70,000 in late August, Thanh Nien newspaper reported.

Following warnings of an outbreak of African swine fever in Poland and Hungary from the World Organization for Animal Health, the Ministry of Agriculture and Rural Development suspended pork imports from the two countries from September 24.

Among the countries exporting pork to Vietnam---Poland, Spain, Hungary, Germany and the United States---Poland has been Vietnam’s main pork exporter since 2017.

Statistics from the General Department of Vietnam Customs show that the country imported 19,581 tons of various types of pork in the first half of 2018, of which 7,035 tons worth over US$8 million was sold by Poland. As such, Vietnam imported some 1,200 tons of pork from Poland each month at an average price of VND26,500 per kilogram.

P.H. Tuan in HCMC’s Binh Thanh District, identified as a pork and beef importer, said imported pork is mainly sold to restaurants and eateries as Polish pork prices are lower than those of other countries. Tuan predicted that the prices of pork would inch up 5-7% due to the shortage of the product. 

A pork wholesaler identified as N.T. Trang at Hoc Mon Wholesale Market said on September 24 that the spike in pork prices was attributable to the scarcity of some pork products in the country.

Trang stressed that the prices of domestic pork, particularly ribs, had surged as the supply of live pigs was limited.

The retail price of lean pork is reportedly VND83,000 per kilogram, while pork ribs cost VND130,000 per kilogram.

BBQ pork ribs imported from countries such as Poland, Spain, Germany and the United States were sold out on September 24. However, Vietnamese pork importers have committed to supplying these products next month despite the temporary ban.

In related news, of the 40,000 tons of pork consumed in the central coastal city of Danang, 80% came from domestic sources, with Binh Dinh Province accounting for 40% of this supply.

An announcement on supplies and pork prices released by the Danang Department of Agriculture and Rural Development on September 24 indicated that live pig prices are fluctuating from VND50,000 to VND53,000 per kilogram, up by more than 50% against the same period last year, which was at a record low of VND18,000-22,000 per kilogram.

Nguyen Do Tam, deputy director of the Danang Department of Agriculture and Rural Development, underscored the need to organize awareness campaigns for customers and pork processors to learn about food safety, environmental protection and the prevention of epidemics as most of the area’s pork is shipped in from other localities. Besides this, providing information on prices, manufacturing models and market situations helps customers make the well-informed choice.

Meanwhile, Phan Van Kha, director of the Danang Department of Industry and Trade, said the prices of goods, including pork, on the market had remained unchanged. Prices of various types of pork at some wet markets across the city ranged from VND90,000 to VND130,000 per kilogram.

As scheduled, in late 2018, the city will create a safe pork supply chain at markets in line with the terms of a cooperation agreement signed by Binh Dinh Province, the pork supplier, and Danang City.

Grab’s customers may use Moca payment services from October 1

Ride-hailing firm Grab will begin to offer its customers Moca’s mobile payment services to make cashless payments when using GrabBike, GrabCar and GrabExpress (goods delivery) services from October 1.

As planned by Grab, customers may pay through Moca’s ewallet service on Grab’s app; by debit or credit card including Visa, MasterCard and JCB through the Moca payment service; or in cash.

However, payment for GrabTaxi services remains unchanged, so customers will continue to pay in cash when using the service.

Customers who want to continue using the GrabPay service to make payments will be required to register the Moca application. Earlier, ATM card users could top up their GrabPay accounts through a VTC Pay intermediary.

It is necessary for these users to activate the Moca ewallet on the Grab app to continue using their account balance from GrabPay, which is currently used to pay for some of Grab’s services. The activation process is quick and easy, requiring users to follow instructions on the app and type in a one-time password to confirm.

To efficiently use the ewallet service’s functions, customers link their ATM cards, issued by commercial banks that are Moca’s partners. After the link is created, customers can directly top up their e-wallet on the Grab app from their ATM, debit or credit accounts.

A representative from Grab confirmed that the account balance from GrabPay can still be used after customers completely activate Moca’s ewallet on the Grab app. However, as the ewallet on the Grab app will only be applicable to domestic phone numbers, users of previously registered foreign phone numbers will be required to re-register with a domestic number. The account balance of the foreign number will be valid after customers update to a new number.

Grab announced on September 11 its partnership with Vietnamese mobile payment service provider Moca to jointly provide mobile payment services to customers of Grab and its partners.

Small, medium enterprises make up high percentage in Vietnam

The country has 517,900 enterprises, increasing by more than half compared to last year, as per the General Statistic Office of Vietnam’s census of economy in 2017.

Of 517,000 enterprises, 507, 860 are small and medium ones accounting for 98.1 percent and just 10,100 are giant businesses making up 1.9 percent. Noticeably, super small enterprises are the major in small and medium enterprises.

Specifically, just 8,500 of them are medium businesses accounting for 1.6 percent while 114,100 small ones making up 74.4 percent.

Worse, of 517,900 enterprises are operating, 505,000 of them have profit and pay tax. Specially, 172,600 in Ho Chi Minh City are profitable.

Employees in giant enterprises increase more than in small and medium ones. Specifically, the number of employees in big companies has risen by 33.8 percent while it is 22.1 percent in small and medium ones compared to five years ago.

Averagely, a big firms has increases of 6 percent each year while it has risen by 4.1 percent in small and medium peers.

Fruit and vegetable exports expected to hit US$4 billion

Vietnam's fruit and vegetable exports are on course to exceed US$4 billion in 2018, with a strong annual growth rate of more than 14%.

According to the Import and Export Department under the Ministry of Industry and Trade (MoIT), Vietnam reported record export revenues from fruit and vegetables, bringing in more than US$2.7 billion over the first eight months of 2018.

China continues to be the largest importer of Vietnamese fruit and vegetables with an export revenue of approximately US$1.99 billion in the eight-month period, an increase of 11.6% over the same period in 2017. It is followed by the US, Thailand and Australia.

The MoIT said that one of the reasons for the strong export growth of fruit and vegetables is Vietnam's signing of a number of free trade agreements, helping to create favourable conditions for the domestic fruit and vegetable sector to approach new markets.

The MoIT also forecast that the escalation of the US-China trade war will have negative impacts on the exports of Vietnamese agricultural products in the next months.

Thus, domestic exporters should seize opportunities while increasing their participation in production chain models and enhancing the quality of fruit and vegetables for export, the ministry said.

Promoting Tay Ninh specialties overseas

Back when she was a senior executive at different large groups, Ms. Tran Hanh Thu would often go overseas for work and at times for a vacation. On Asian trips, she always noticed how few Vietnamese products were available at supermarkets, which is the opposite of the case in Vietnam. It remained in her mind, and she eventually quit her high-paying job at a multinational corporation to get her startup, Tanisa, off the ground.

Tanisa manufactures and distributes specialty products from her birthplace, southern Tay Ninh province, including its famed rice paper, shrimp salt, and spices, to distributors nationwide as well as several countries overseas. With a love for her hometown’s products and a desire to grow Vietnamese brands worldwide, she herself selects safe raw materials such as rice, pepper, and garlic, which are then machine-processed. Tanisa also packages the products, including adding brand quality verification stamps, and then distributes them domestically and internationally.

She also advertises her specialties online to approach a wider foreign client base. The advertisements are important, she explained, as they include full product information to targeted clients. Industry 4.0 and digital marketing make this process easier than it once was, and more than 95 per cent of Tanisa’s revenue is indeed from exports.

Though her shrimp salt exports are lower than for rice paper, Tanisa is still proud to be the first Vietnamese company to take the product overseas. Tanisa has found many new customers in the US and Malaysia recently, making Ms. Thu happy to a pioneer its export.

The idea behind the startup is a dream of introducing Vietnamese specialties to international markets, and she believes her knowledge of Tay Ninh specialties means she can adapt as necessary. Exporting these types of food is more difficult than selling them in the local market, because each country has different standards to meet. In order to ensure the quality of her export products, Tanisa must select safe and fresh raw materials. Ms. Thu purchases ingredients from Vietnamese suppliers that meet Vietnamese export standards and the strict requirements found around the world, including those in particularly-fastidious markets such as Japan.

The journey to winning over new clients is not easy and Ms. Thu has had her share of ups and downs. Her parents opposed her decision to leave a good job and take a risk on the startup. Capital has been an issue since getting going, and she was forced in the early days to delay payments for as long possible.

Finding good employees has also proven problematic. Though Ms. Thu wants to recruit professional staff, she finds it hard to compete on salary. Such problems have made her, at times, doubt her decision to start Tanisa, but she and her shareholders have worked hard to overcome any and all issues. “Being a CEO is about problem solving, so I have to be better at handling problems than avoiding them,” she emphasized.

Despite the serious problems in the early days, she remained determined to distribute export-quality products. Three years after launching, such products are now sold in over 1,000 supermarkets and shops in Vietnam, such as Co-Op Mart, Vinmart, Satrafoods, Family Mart, and Bsmart. They are also present in France, South Korea, the US, Japan, Taiwan, Thailand, Brunei, and Russia, and are finding favor.

Because tastes differ so much, Ms. Thu explained, product exports also differ. While Tanisa’s largest markets for shrimp salt are Japan and South Korea, rice paper is popular in France and also in South Korea. Tanisa now has overseas customers ordering every month and sales and profit are growing. Growth in the first half of 2018 was 127 per cent compared to the same period last year.

Rice paper will be a major export under its plans for the years to come, but shrimp salt and other Vietnamese specialties also hold appeal around the world. In markets with competition, Tanisa will focus on developing products with different characteristics, such as being organic, and will also conduct research and development (R&D) to expand its portfolio and offer different products. 

It will also develop the local market for specialty products from Tay Ninh, especially in the high-end organic segment, with a goal of eventually bringing the rate of domestic sales to the same level as exports. Value chains are also a key point in development, and Tanisa expects to cooperate with a partner in France with a franchise chain. For Ms. Thu, passion and strategy are the elements needed for success.