Tan Dong Tien JSC Globalising Vietnamese Rice Brand

To have the present position and great reputation, the company underwent numerous difficulties since its inception and initial business of milling rice for export. Currently, not only selling in the domestic market, the firm has also exported to foreign nations like Malaysia, Indonesia, Hong Kong, the United States, and especially China and employed nearly 400 employees. The company’s export output increased significantly from 100,000 tonnes in 2013 to 180,000 tonnes in 2014 and 100,000 tonnes in the first five months of 2016 (expected to reach 280,000 tonnes in the year, valued US$100 million).

 

Needless to say, these successes are resulted from the company’s competence of making the most of available local advantages in Long An province, which has a total arable area of 331,000 ha, ranked third in the country after Kien Giang and Ca Mau provinces, with a rice production output of 2.8 million tonnes a year. The accelerated agricultural industrialisation and modernisation has also helped the province to increase rice production and consumption. Particularly, the company was supported by the local authority to become a leading rice exporter and financially lent by banks. Hence, its reputation was raised.

 

With these strengths, Tan Dong Tien Joint Stock Company plans to scale up rice production, processing, trading, consumption and export by cooperating with rice farmers and accelerate the application of scientific and technological progresses to advanced production process, product mechanisation and business capacity building, Muoi stressed. In the past time, the company has expanded its big-field project in Thanh Hoa district (An hectare requires VND8.7 million for rice cultivation. The average annual funding is VND18 billion, with the lowest in 2015 with VND7.2 billion and the highest value in 2020 with VND29 billion.)

 

 

Speaking of the large-field project, he said that this is the premise for restructuring the agricultural sector and the rice sector by raising the added value and stabilising development and moving towards branding Vietnamese rice in general and Tan Dong Tien rice in particular. This is an objectively inevitable trend because the only contract-binding production cooperation form can expand material areas and ensure inputs for production to meet global demand," Muoi noted. With this project, the company will cooperate with farmers and other businesses to generate a closed production chain. Specifically, the company will work with the District Agriculture Committee to provide 100 per cent of certified seeds for farmers; supply pesticides and fertilisers; and advance 100 per cent of interest rate-free cash for seedling, fertiliser and pesticide purchases of farmers. When the company purchases rice, it will settle for this advance. The firm will give special technical guidance to farmers to accelerate the application of technical and production processes to ensure output and quality.

 

Although export markets have huge potential, shipments are volatile because many countries sell this food commodity. Failures in controlling seed quality, inputs and output quality will result in failures on markets. For the time being, the company’s shipments are primarily destined to China (its shipments to this market are expected to fall to 60 per cent by 2025). Meanwhile, its sales to Europe are shrinking when Indonesia, Pakistan and the Philippines plan to export rice. This is a major concern for Vietnamese rice exporters at large and Tan Dong Tien Joint Stock Company in particular. But, admittedly, rice price rose in 2016. Muoi said, “A successful person is the one who know how to catch the opportunity.” For this reason, the company always keeps close track of market developments and improve product quality to maintain market shares in important markets. And, in addition to taking part in 1,000 ha of big-field production model, Tan Dong Tien Joint Stock Company will combine with the Department of Industry and Trade and the Provincial People’s Committee of Long An to spare 300 ha of land for building processing plants.

 

Rice branding is a pressing issue now. And, to do this, the company not only utilises its “internal resources” but also resorts to “external forces.” The province particularly needs the cooperation with local government in creating favourable conditions for the large-field project. With its determination to overcome difficulties, Tan Dong Tien Joint Stock Company will surely bring “Vietnamese rice brand” known for premium quality and food safety to the world.