As a state-owned enterprise, affiliated with Saigon Trading Corporation Limited (SATRA), COFIDEC Company specializes in producing products such as: seafood, frozen vegetables and fruits for export.

With the main export markets being Japan (65%) and Korea (20%), the remaining are Australia, Singapore, Taiwan, Hong Kong, Canada, America (15%), COFIDEC encountered many difficulties during this period. during the Covid-19 pandemic outbreak worldwide. How COFIDEC has overcome difficulties, resolved challenges, seized opportunities to transform, create momentum for development, the conversation below with… has given us a convincing answer.

Reporter: In the general context of the world economy being heavily affected by the Covid-19 pandemic, as an export business, how was COFIDEC affected at that time, sir?

Mr. Doan Van Nam, Acting Director of COFIDEC Company: The impact of the Covid-19 pandemic on the global value chain is quite severe, especially in large countries with world-class economies such as Japan, South Korea, the US, China… are seriously affected by the spread of the pandemic. This is also one of COFIDEC’s major trading partners and main export markets.

When these partners were affected by the Covid-19 pandemic, most of COFIDEC’s production, trade and economic growth activities were also affected and significantly reduced.

Most of the company’s export products are brought by customers to channels: restaurants, supermarkets, schools, and shopping centers. When the epidemic broke out and social distancing was implemented, the above distribution channels also had to close and stop operating.

At this time, Japanese customers can only sell 10% – 20% of total annual sales, so they request to reduce the quantity shipped. Some customers request to cancel the order amount of about 30% of the signed order. Customers such as Korea and Australia also request to reschedule shipments to several months later than the delivery date on the contract.

Rescheduling shipping schedules and canceling part of orders due to the impact of Covid-19 not only increases storage costs, but also causes the company to lack business capital, because the goods have been produced but cannot be exported. as planned.

Besides, the Covid-19 pandemic causes unpredictable socio-economic changes at home and abroad; Besides, the unstable world political situation causes prices and input costs to escalate, causing difficulties for business, especially export activities.

* The pandemic has caused businesses to “struggle” and are forced to find plans to overcome it. Businesses that are quick and know how to seize opportunities will emerge and expand their reach. How about COFIDEC, will the company’s export activities recover and develop after the pandemic, sir?

– After the pandemic, the world economy faces many challenges, however, looking at it optimistically, the Covid-19 pandemic also creates good opportunities if you know how to grasp, change and take advantage of the time. opportunity to become strong. The company’s main export markets such as Japan, Korea and Australia have gradually regained balance, following the tendency to adapt and live with the epidemic, so market demand is also stable and increasing. gradually.

Customers have quickly changed their channels and sales structure. Instead of focusing on sales channels at restaurants and shopping centers like before, they have switched to selling at supermarkets, focusing on to forms of online sales, online shopping, TV shopping, so that consumers can order to take home and cook themselves instead of eating on the spot.

Customers quickly adapted by changing to smaller packaging, more beautiful packaging designs, more suitable and attractive for display at supermarkets, online promotion on websites, to meet customer needs. consumption.

From these changes, the company has coordinated with customers to launch products with new, more beautiful packaging designs.

With great potential and the advantage of diversity and stable product quality, COFIDEC products reach more stalls in supermarkets and more people’s dinner tables around the world. This means that the number of export orders is also gradually stabilizing and increasing again as before the Covid-19 pandemic.

*Although the epidemic has been controlled, there are still many uncertainties as the global supply chain is not smooth, directly affecting the export industry. What are COFIDEC’s current difficulties and challenges?

– During its operation, COFIDEC always receives direction, attention and active support from the Corporation (SATRA), in order to maintain COFIDEC’s peace of mind in production and business, stabilizing the lives of employees and staff, the same goal, towards sustainable and comprehensive development in all aspects.

However, in the current context, it can be said that there are still many difficulties and challenges, such as increased raw material input prices, increased gasoline costs, and accordingly other costs have increased, especially transportation costs. shipping, international freight (up more than 150%), palm oil (up 60-70%), packaging (25-30%), flour, production materials (up 10-15%).

COFIDEC’s main export market is Japan, but the Japanese economy is at risk of plummeting due to the resurgence of the Covid-19 epidemic; Inflation in this country is at its highest level in the past 7 years, causing people to limit spending. The Japanese currency fell to 144 Yen against the USD, the weakest level since 1998. The devaluation of the Yen greatly affected customers’ businesses, because the more they imported, the more ineffective they became. .

Besides Japan, the Korean Won also extended its decline, reaching its lowest level since the 2009 global financial crisis, affected by strong monetary tightening by the Federal Reserve Bank. America and Seoul’s rising trade deficit.

Recovering after Covid-19, customer demand for orders also increased, however, due to the frequent shortage of direct production personnel, the impact of the prolonged Covid-19 epidemic caused the direct workforce to be continuously unemployed. continuously fluctuating. To solve this difficulty, the company must use 30-40% of the direct workforce as seasonal workers, which also affects the company’s business performance.

* There have been many correct and timely decisions by the Government to help remove difficulties for businesses, but there are still many difficulties and inadequacies. What concerns does COFIDEC still need to propose, sir?

– We are very happy that the Government and State have had many timely policies to help businesses overcome difficulties to restore production and business.

As an export business, we hope the Government will have appropriate sanctions on shipping lines to control shipping costs and other export costs in a stable manner, not allowing sudden increases. like the first months of 2022.

Continue to implement administrative reforms to minimize the cumbersomeness of customs procedures.

Have policies to support and invest in science and technology in production, improve productivity to create products with competitive prices, and minimize dependence on imported raw materials.

From the fact that businesses are being affected by the epidemic, ministries and branches need to pay attention and quickly take measures to support and direct the reduction of costs for the business community, including the consequences from food prices. Livestock production has increased, in addition to increased input costs such as packaging, chemicals, transportation, integration…

* Thank you for the conversation.

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