Date 15/12, Kinh Do Corporation solemnly 15th birthday anniversary and inaugurated the factory in Binh Duong Kinh. This is considered a key turning point in building brand-oriented sustainability of a Vietnam leading enterprise in the food sector. On this occasion, General Director Tran Le Nguyen has for DNSG interesting conversation ...
General Director Tran Le Nguyen
* First of all, congratulations fun "2 in 1" of Kinh. Looking back went through, what he says is the most important milestones?
- Since inception, we have identified business objectives of Kinh Do is to serve the community. Therefore, the years, the brand Kinh Do not just close to the consumer, but also friendly society. From a small base that specializes in food was established in 1993, to date, Kinh Do has 11 member companies, 8 factory (specializing in the manufacture of confectionery, ice cream, soft drinks) and a number of economic projects real estate ... Looking back 15 years, in my opinion, there are 5 major milestone associated with 5 strategic event of the Kinh:
(1) Establishment Co. Kinh 1993;
(2) establishment of North Kinh Do building factory in Hung Yen on an area of 11 ha (this is also the first project in Hung Yen province that time);
(3) move from the family company into a public company in 2002 and listed on the stock market;
(4) acquisition of Unilever ice cream brand Wall and renamed Kido's, continue to invest in Tribeco, Nutifood, Vinabico;
(5) to expand operations into the field of real estate products Hung Vuong Plaza debut is currently trading very efficient and the plant inaugurated Kinh Do Binh Duong province in an area of 13ha.
* Looking at the portfolio, the Kinh Do is to follow the model of a diversified business conglomerate. So the journey to pursue this dream, raw food is also seen as key areas?
- Currently, the business strategy of the Kinh focus on 4 main areas: food, real estate, finance and construction of retail systems. However, in the above-mentioned 4 array, the food is still the core areas of the Kinh. Accordingly, the structure of our industry is divided by the ratio 7/3, 70% for the food sector.
- And if ranked in order of priority, the head will be food, followed by real estate and financial investment, and ultimately retailers. So far, sales of food still accounts for a substantial part of the whole system Kinh. As expected, in 2008, sales of food sector reached 3.000 billion, profit from food in 2008 about 300 billion.
* This means that the global financial crisis did not affect the Kinh?
- Yes, but not much. In order to prevent risks, we made strategic adjustments. Is a recession, weak purchasing power should produce something, invest in something, suspend something, have to calculate both. Specifically, we have suspended some projects are not really necessary. After this crisis, forcing every business to be more cautious in all investment decisions. Kinh Do, too.
* Talking about the strategy of building its own retail network, Kinh intend associated with foreign counterparts do not, sir? What do you think about the competition in the retail market as Vietnam prepares to open under the WTO?
- Has the business, they must accept the competition. Considering that competition is the driving force of innovation, if there is no competition, the enterprise very smug. In the context of Vietnam's retail market opening, surely there will be many "giants" the world to participate. Our solution is to create a separate brand for retail. Currently, we are promoting the joint venture with a Singaporean partner. The goal we want to target in the near future is to build supermarkets or modern business center.
* Many people believe that the present time is the perfect opportunity for merger and acquisition activity (M & A). Please Kinh respondents intend it?
- Not at this time, we have to be very careful, especially in this period, to ensure stable funding for core activities of the company in the food sector and a number of important projects as planned SJC building projects with a total investment of up to 2.000 billion (Kinh contributed 50% of capital). This project is being implemented with the scale 45 floors. Moreover, in times of trouble, need most is safety, cash is "king" that! (laugh).
* According to him, the introduction of Kinh Do Binh Duong factory in operation mean how in the strategic orientation of the Group?
- Commencement of construction from 10/2006 in Vietnam Singapore Industrial Park, invested nearly 400 billion; Kinh Do Binh Duong factory is equipped with modern machinery, closed are imported from Italy, the Netherlands, Denmark, USA.
- In particular, where we have invested a center for research and development R & D with full modern equipment according to international standards, in order to improve research and product development to produce the product high-end products to meet the increasing demands of consumers.