IDI Grows to Conquer New Markets

“Over-dependence on an import or export market is a risk factor that cannot be underestimated. If there is a downward movement or a restriction from that market, stagnant movement of goods will cause serious damage to the business.”

Seeking and conquering new markets is a mission and responsibility of any business. International Development and Investment Corporation (IDI) has long considered the importance of this and has made entering new markets a top priority in its development strategy.

The door of development has opened
After 10 years of engaging in seafood processing and exporting, IDI, a member of Sao Mai Group, has contributed to export results of Vietnam, especially pangasius - a catfish indigenous to Vietnam. The image of Mekong Delta “Koi” fish, a genre of carp, is increasingly known to the world. It has entered luxury restaurants, supermarkets and family kitchens.

To do this, trade promotion is very important and IDI is very active with it. In particular, IDI has carried out a variety of product marketing programmes at international trade fairs and established and utilised multi-dimensional relationships. To date, IDI has dozens of strategic domestic and foreign partners and distributors and expanded its export markets to Asia, the Middle East, the United States and South America. In 2016, IDI's sales exceeded VND4 trillion, rising the third largest seafood exporter in Vietnam.

After many years of extreme hardship, the pickup of fish prices in late 2016 and early 2017 has helped pangasius export prices to grow. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), pangasius selling prices averaged US$2.3 per kilo in January, US$2.7 in February and US$2.8-3 in April (up 30.4 per cent from the beginning of the year). Currently, Vietnam has 20 major pangasius exporters, which account for about 80 per cent of the sector’s export value and consume more than 70 per cent of raw fish. As exporters continue to expand their markets, their orders also increase as a result.

IDI stands firm on higher plane
“Currently, a considerable share of pangasius is exported to China. Chinese customers even come to our factories to buy the fish in cash. Like other markets, Mainland China is a market that any company must pay attention to more or less. The decisive factor is who does better. However, to avoid misfortune, we must opt for good payment, a matter of fact in business,” said Mr Le Van Chung, General Director of IDI.

Trade diversification and multi-lateralisation in a bid to reduce risks is a business art. Some years ago, IDI marvellously conquered big markets in spite of economic crisis. That gives a practical classic lesson to IDI today. In addition to effectively maintaining existing large markets such as the European Union (EU), South America, the United States, South Korea and China, IDI has continuously expanded into new potential markets such as Russia, the Middle East, Eastern Europe, Central America, Africa, Canada, ASEAN and India. IDI not only asserts its brand name in foreign markets, but also focuses on organising value chain-based aquaculture production and pledges to provide best products for domestic customers.

In order to ensure input supplies, IDI continues to develop concentrated aquaculture areas and consolidate integrated farming areas. By directly controlling over 80 per cent of inputs, IDI will significantly reduce its cost of sales (as self-cultured fish is cheaper) and minimise input shortage risks. For high standard markets, the firm will intensify marketing and trade promotion for high-grade products like fillet. IDI is now supplying a wide range of products for different needs of domestic and foreign consumers, including breaded fish fillet, smoked fish fillet, sliced fish fillet and rolled fish. These products are sold in major supermarket chains in the world, and processed in accordance with ASC, VietGap, GlobalGAP and BAP standards. This is also the answer to the surge in orders from the beginning of this year from Eastern Europe, Central America and Africa. In 2017, the company expects to earn 20 per cent more revenue than 2016.

To further penetrate existing markets and conquer new ones, IDI is urgently completing Sao Mai fish feed processing factory with a yearly capacity of 360,000 tonnes, to offer best products for local farming areas. Besides, the company is quickening the formation of the Pangasius Farming Research Centre. Controlling input quality from breeding and feeding will be a strong foundation for the company to perform well.

The Trung