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Charoen Pokphand Foods PCL pointed that Vietnam is one of the potential countries in ASEAN with one of the fastest growing economies in the world. For the 1st quarter of 2018, Vietnam’s GDP showed a promising 7.4% growth, which will flourish its business throughout this year.
CPF is one of the very first Thai companies that invested in Vietnam since 1988 via CP Vietnam Corporation, and has become a large manufacturer for integrated agro-industrial and food products.
The Company said Vietnam has a vital role on CPF growth, thanks to the domestic consumption demand and its export, which has expanded more than 20% compared to previous year, which was resulted from Vietnam having Free Trade Agreement with European countries and United States of America. Moreover, sixty percent of Vietnamese population are in working age and has become a driving engine for stable domestic consumption and spending. All of these have benefited businesses operating in Vietnam.
In terms of agro-industrial sector, the Company sees a strong improvement from previous year, especially the sharp drop in swine price due to oversupply. Currently, swine price has rebounded to VND 38,000 to 40,000 per kilogram (THB 55-57) from VND 20,000 per kilogram (THB 30) in 2017.
Besides, Vietnamese government targeted to increase its seafood export, especially shrimp. It is forecasted that Vietnamese shrimp export will increase from 690,000 tons in 2017 to 830,000 tons in 2018 and to 1.14 million tons by 2025. This will make Vietnam to be one of the largest shrimp producers in the world.
Form its vision of “Kitchen of the World”, CPF expanded it businesses to 16 counties, and the Company is under the process of investing in shrimp business Brazil. The international businesses is an important growth driver for CPF. As of 2017, 64% of Revenue from Sales of the Company was attributed to International businesses.
CPF growth strategies are to add value to its products towards processed food products, and to focus on International businesses growth especially in the countries with high potential and with population over 100 million people, such as Vietnam, the Philippines, and India.
April 25, 2018 - CPF
