Is there anything new to explore more about a successful and famous person like Tran Le Nguyen, CEO of Kinh Do Corporation? Bring that mood to the appointment, ultimately, reporters of Securities Investment have found that the brave entrepreneur like him always nurtures his business aspirations as the mountain climber to conquer the height, is not deterred form difficulties but not for this reason he lost the simple pleasures in the daily life...
Mr. Tran Le Nguyen - CEO of Kinh Do
Operation: "1" + "1" + "1"> 3
Comment on the business results of the first 9 months of 2011 of Kinh Do Corporation (KDC) and Analysis Report of Securities Company, HSC has continued to hold "superior" rating over KDC shares.
What did the year 2011 bring meaningfulness to you?
I assessed the year 2010 was a turning point for Kinh Do Corporation with the merger of North Food Kinh Do Joint Stock Company and Kido Joint Stock Company. And the year 2011 also played the key position in continuously transferring Kinh Do’s activities into a Food Corporation.
In the first year under the new model, the Corporation’s activities have achieved successfully and suggested that the merging determination to increase performance and reduce cost was justified.
Over the past year, what made you satisfied most about the operation activities of the Corporation?
In 2011, KDC total revenue is expected to reach 4,200 billion dong, an increase of 31%; profit of business activities has gained over 500 billion dong, up 45% over the previous year, exceeding the planned target.
Unlike previous years, this year's profit from Kinh Do comes purely form operation results without other income from financial or real estate sector. In the context of the business environment there are too many challenges, these figures have great significance. I'm proud that the market share of Kinh Do Corporation has been extended; employment and income of our staffs are still guaranteed during the hard times.
So, where have these successes started from?
In my opinion, it is thanks to the support each other of the companies within the Corporation. After merging, the parent company has given great support for subsidiaries in terms of management and finance. For example, the impressive growth of 40% of Kido Joint Stock Company has not been reached without funding support from Kinh Do Corporation. It can be said that the result of addition operation 1 + 1 +1 was greater than 3.
An interesting change is pointed out that Kinh Do attracted a lot of senior personnel from multinational corporations in the first time of the past year. How did you convince them to work for the company?
Why did not we raise the opposite question that they are persuaded of our working environment, growth potential or creative personality of Kinh Do Corporation? Currently, we are aware of creating a wide space to attract the intellectuals. After the merger and along with the expansion strategy in the near future, Kinh Do will have large scale being managed and operated in a professional manner in case the company wants to further develop.
The strategy focuses on the food industry
Over the past years, there was public opinion about Tran Le Nguyen who intended to buy a private jet. We asked why we haven’t seen your plane "took off", Tran Le Nguyen admitted that he has ever that ambition but decided to cancel because it is not necessary, he also spoke frankly in the period 2006 - 2007, securities and real estate were so "hot" that entrepreneur like him felt overwhelmed and rushed into investment. Thus, Kinh Do is stumbled in 2008, profit was negative due to the deduction in financial provision but "Kinh Do will be loyal to operate in food industry in the future, the growth target of 20-30% per year is to gain the target revenue of 10,000 billion VND in 2015, not to mention the revenue of merging new members. "He's not afraid to share about the plans in 2012 and passionately talk about the way that Kinh Do will forward to achieve above goal.
How will you appreciate business environment next year?
I appreciate the policy is justified and business environment will be stable again. Inflation will inevitably decrease and interest rates shall be dragged down to the acceptable levels. In the third quarter of 2012, this changed shall be seen by the enterprises. Therefore in 2012, Kinh Do Corporation still feels confident with the expected target revenue of 6,500 billion dong, an increase of 40%.
What makes you confident with such a plan?
After merging, horizontal product chain of the Corporation has been expanded from confectionary products to various new categories namely cream, yogurt and milk. Thanks to operation results and diversifying products, Kinh Do’s profitability is gradually not being affected by seasonal factors. Furthermore, the product chain of Kinh Do Group will continue to broaden to other food products so as to meet essential daily needs and help the Corporation grow by around 20-30% / year in the future.
The fierce competitions are also ongoing in the product segments. Thus what are your competitive strategies?
It must be thought differently to achieve success. I do not believe that the food industry has product segment without space for new enterprises. New products of Kinh Do Corporation are focused towards intermediate and senior segment with its own uniqueness. The product must be innovative and made difference.
And the up-to-date strategy is M & A enterprises in the same sector; will Kinh Do follow that direction?
Not apart from this possibility but Kinh Do only merges the companies that are operating effectively or potential to help the Corporation develop stronger. Indeed, in M & A activities in the domestic market, Kinh Do is a pioneer in business transaction such as acquires Walls Cream (2004), purchased 35% stake in Tribeco (2005)... and if such commercial affairs are done, I think it will be totally normal. It is said that Kinh Do is considering the capital withdrawal from a number of associated companies to focus for the upcoming plans. In operation activities, failure is the flame to practice skill and spirit which is the most important thing of entrepreneurs on the business market.
Cooking skill is not worse than 5-star hotel chef
Tran Le Nguyen confides that the business goal is to earn money and material wealth which is one measure of success. But it is not the only measurement as well as his business is not only for the purpose of earning more money but it comes from my passion absorbed into the blood. He said the food industry has a special appeal to the extent that he "steers" a Vietnam's leading food corporation and he still likes cooking at home and cooking skills is not worse than 5-star hotel chef (!)
What are your hobbies after finishing stressful works in the market place?
I love exploring the flavor of the food. When tasting a delicious dish, I felt the ingredients and cooking skill of the chef. At home, I myself find the recipe and learn how to cook. Fortunately, now it is easier for me to find the recipes on the internet. I study and now I can cook many dishes in Chinese, Korean and Japanese cuisine. Our staffs have been invited to my home to have a meal cooked by myself- the chef. I also cook and invite my friends and partners on weekends.
Your wife would be very happy because of your good cooking?
That feeling is not certainly at the right time when my wife tasted the first dish I tried to cook especially the food is not good. Even while enjoying a delicious cooked by myself, she still anticipates even though I'm CEO of Kinh Do Corporation if I open a restaurant, It will be bankrupt soon because in order to have tasty and nutritious dish on standards, food price is too high.
What do you usually do when Kinh Do products are spread over the country and brought happiness for every home on Tet festival?
Every spring comes, my family always keeps the habit of traveling. After a strenuous working year, a tour visiting our relatives is the way for all members in my family to be closer together. As usual, my works are very stressful but I leave all when I come back home.
According to the Securities Investment