PAN Insight Q3.2021

EDITOR’S NOTE

EDITOR-IN-CHIEF Nguyen Thi Tra My CEO of The PAN Group

EDITORIAL BOARDNguyen Hong Hiep Vu Le HaNguyen Khanh Linh

CONTRIBUTORS Pham Trung DungNguyen Van CuBui Kim HieuTon Nu Canh TranHuynh Thi Ngoc My Truong Duong Thuy Nguyen Thanh Thuy Nguyen Van Kha

VinaseedFimex VNAquatex BentreBibicaLafooco584 Nha TrangSHIN Ca PheVFC

The 4th wave of COVID-19 spread quickly across the country, which caused severe disruptions in agricultural production and supply chains in both domestic and ex-port markets. However, in the middle of difficulty lies opportunity. We have learned valuable lessons through overcoming the challenges and proactively adapting to the new normal. It is also a test to find the key to more

sustainable development after the pandemic.

It is also the theme of this internal issue of PAN Insight which depicts memorable stories of our member com-panies in the past period. They are stories about the re-lentless efforts to turn the situation around; the dedica-tion, talent, and enthusiasm of our “captains” and the resilient of PANers during the pandemic. Perhaps, the greater the challenge, the greater the opportunity for PANers to assert their bravery, acumen, and creativity to bounce back stronger. We are ready for a brighter “new

normal”, ready to resume production!

The PAN GroupThe PAN GroupThe PAN Group

PAN INSIGHT – Q3 | 2021

15th floor, ICON4 building, 243A De La Thanh, Dong Da District, Hanoi, VietnamTel | +84-24 3760 6190Email | [email protected] | www.thepangroup.vn

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In this issue

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90

98

75

76

79

The PAN Group win the “BEST MANAGED

COMPANIES” award: Achieve the international

standards of corporate governance

An overview of the 4th Covid-19 wave

The implementation of the “3 on-site” regulation

at Sao Ta: A frantic sprint for 72 hours and a week

of worry

Dr. Ho Quoc Luc:

I’m finding opportunities in the pandemic

AQUATEX Ben Tre:

The emotional rollercoaster of “3 on-site”

LAFOOCO: Resilience against Covid-19

SHIN Ca Phe:

“Fighting wars” at the epicenter of the pandemic

584 Nha Trang:

Increase resistance to crises

VFC: Applying digital technology and upskilling the

workforce to adapt to the challenges of Covid-19

BIBICA officially launched their retail digital

transformation platform

Mrs. Duong Ngoc Kim, General Director of Khang

An Foods: We have completed the “training course”

of responding to challenging situtaions

Share the love, support the fight against Covid-19

NEWS

The temporary transfer to HNX:

A timely dicision to protect investors

The battle to reclaim ST25 rice brand patent

SHIN Ca Phe has landed on the Nordic

HURO PROBIOTICS

granted the GMP-WHO Certificate

584 Nha Trang commences construction of bottling

factory at dien Phu industrial complex (Dien Khanh,

Khanh Hoa)

“Dai Thom 8” rice variety of VINASEED won second

prize at VIFOTEC 2020”

Indo - Pacific Geo-economic competition

conference: The PAN Group - The prime example of

the circular economy concept in Vietnam

VFC comprehensively improved the enviromental

and social management system

The PAN Group and 4 member companies are on

the list of the “145 Vietnamese best performance

companies in the decade 2010 - 2020”

BIBICA sends 10.000 gifts through “Mid-Autumn

festival for you”

SHIN Ca Phe sends love to the children in the highlands

VINASEED launches newsletter for farmers

The PAN Group renews D&O insurance policies for

company managers

Sao Ta , AQUATEX Ben Tre, LAFOOCO named

“Prestigious export business in 2020”

VINASEED rice reaches over 10,000 customers

in Australia

CORPORATE CULTURE

We need a companion to go

Khang An Foods: The “on-site camping” story and the

strength of “an army”

PRODUCT STORY

VINASEED accompanies San Diu people to manufac-

ture VIETGAP rice production

PROBIOTIC instant Arabica coffee: A healthy &

organic product

BIBICA introduces “AHHA boba soft candy” to meet

the new trend of the youth

584 Nha Trang fish sauce:

New brand identity, new strength

COCO Food: The official distributor of The PAN Group

THROUGH THE EYES OF PANERS

Some stories during the pandemic

The Covid-19 story: It’s like a Hollywood movie

The logistics story in the “Covid season”

Covid-19 might not be the biggest challenge

More happy seasons on the intergrated rice fields

Poems about the fight against Covid-19

Slogan contest to promote Kaizen - 5S

The new year celebration of the Khmer

Ben Tre - The capital of Southern amateur music

Dragon boat festval in Ca Na

Marine aquaculture to nourish the world

PPI COMPACT in Di Linh:

Accompanying farmers to realize “Dual goals”

ESG Compliance - The best corporate governance

pratice to create competitive advantages

SP

RIN

G I T N G THR

OU

GH

T

HE PANDEMIC

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PAN STORIES

SUSTAINABLE DEVELOPMENT

5

8

22

40

56

Representatives of the jury and 3 enterprises won the award of Best Managed Enterprise in Vietnam 2021.

What does winning this award mean to you & your company?

For a long time, I have heard that Best Managed Companies, sponsored by Deloitte Private, is an awards program that recognizes excellence in private companies across many countries world-wide, for nearly 30 years, and I was very glad that this year it is officially held in Vietnam. And I felt happier and so proud when I received the announcement that PAN had won the award Best Managed Companies amid the pandemic.

Earning the award after 3-round evaluation of the independent judging panel is a meaningful recognition for The PAN Group and a special encouragement to the leadership team. This is a compliment for our effort when implementing our

What aspect of the Best Managed Companies journey that has been the most beneficial to your company?

The PAN Group is the pioneer in Vietnam in applying international governance practices. We assure that our orientation is building a strong agricultural and food group not only in Vietnam but in regional areas and global. This vision continues to be supported by our foreign partners as IFC, TAEL, GIC, Sojitz... So when we signed up for the Best Managed Compa-nies program, we were quite confident. The process of nearly 3 months participating in the program with 2 rounds of evaluation has brought us useful experi-ences beyond expectations.

First, we had the opportunity to review and system-ize our governance model according to an advanced evaluation framework, from strategy to innovation, corporate culture, and financial management.

strategy, vision, and governance model: having its own identity but in line with international practices.

The participation of corporations like PAN in the network of Best Managed Companies demon-strates the qualification and ranking of Viet-namese enterprises that have been risen today. We also have more opportunities to learn and look for business cooperation opportunities with partners in this network. I would like to say thanks to Deloitte for trusting and allowing PAN to join this very competitive program. The PAN team has gained a lot of valuable experience from Deloitte Global and Deloitte Vietnam during 3 months of implementing the program.

Second, we can discuss with independent experts about each governance component being imple-mented at PAN, compared with current best prac-tices, then received frank and helpful feedback.

The above experiences made us more confident with what we are doing. I appreciate the support of experts and coaches from Deloitte Global as well as Deloitte Vietnam. Internally, we are seriously con-sidering the evaluations and proposals of the Judg-ing Panel to further improve our governance model.

9

The PAN Group won the “Best Managed Companies” award organized for the first time in Vietnam by Deloitte.

CEO of The PAN Group Ms. Nguyen Thi Tra My

THE PAN GROUP WON THE“BEST MANAGED COMPANIES” AWARD

ACHIEVE THEINTERNATIONAL

STANDARDS OF CORPORATE GOVERNANCEEditor’s Note:

On September 13, The PAN Group was officially recognized as the winner of the “Best Managed Companies” award pro-gram at a ceremony organized by Deloitte for the first time in Vietnam. The evaluation of the awards is based on more than 25 years of observed practice from the global awards program that has been rolled out to 37 countries worldwide. This is the result of an independent and objective assessment by the Jury to recognize the efforts and achievements of The PAN Group, especially in the current volatile market times, which proves the development of the Group’s sustainability is based on four pillars: business strategy; competitiveness and innovation; corporate governance and finance; corporate cul-ture and commitment. The recognition also marks the offi-

cial milestone of PAN joining a network of more than 1,000 best-managed companies globally.

An important point in PAN’s development strategy is spreading the values to stakeholders so that

everyone could join hands to build and devel-opment a sustainable ecosystem. Ms. Nguyen

Thi Tra My, CEO of the Group had an inter-view on this topic.

PAN Group builds a corporate culture based on dis-tilling the best cultural values of its member compa-nies, so, how does PAN group replicate these cultur-al values for the entire group?

M&A helps us speed up our progress to build an agri-food eco-system with a closed value chain, but it also brings us many chal-lenges. A statistic shows that over 70% of M&A deals over the world fail due to post-merger issues, and cultural differences are the main reason.

When making strategic decision to expand a business segment, we researched carefully to ensure that our targeted companies and their leaders are consistent with PAN’s vision and mission. Most of our member companies have a long history, some of them are 25, 45 or even over 50 years old, and each of them has its own cultural values. Their corporate culture is very different mainly due to differences in regional culture, specific working styles, and industrial characteristics. PAN always respects their distinct cultural identities, considering them a valuable asset that needs to be maintained and developed. Besides promoting cultural diversity, we have many events for them to understand the whole group as the one entity and inspire them to join with our common culture.

Internally, sharing culture is a common feature of PAN and our member companies, so we continuously promoted this on many levels. We have organized many joint activities to share our vision, strategy, advantages, and disadvantages such as CEO Summit, PAN Gala, internal magazine or CSR activities (eg: jointly implement flood emergency relief in the Central region, participate in tree planting and livelihood creation through the project “Life of forestry”...).

Sharing culture is also reflected in The PAN Group’s transpar-ency in information disclosure. We usually update information on production and business activities as soon as possible. Come to The PAN Group, investors, partners, stakeholders can get a completed and transparent data source that is public and easily accessible.

Additionally, sustainable development is also a culture that PAN has selected and enhanced from the values of our member com-panies. Before coming to PAN, all companies have achieved sus-tainable development goals at certain levels. However, most of them come from the individual request of customers, so the im-plementation is still fragmented. The culture of compliance with sustainable development goals in member companies is quite weak. Since PAN started to invest in and systematize sustain-able development strategies, using international standards such as IFC’s Environmental - Social standards applied to the whole Group, the group’s compliance become clear and prominent. Sustainable development has now become a thread connecting the whole Group, and at the same time opening up many oppor-tunities for our member companies when reaching international markets.

Until now, we can confirm that the success in corporate culture development from spreading the PAN culture and maintaining the distinct culture at each member company has made an im-portant contribution to the development of our Group.

The business strategy of PAN Group always focuses on operating purposes – creating values that spread to stakeholders (including farmers). Is this what sets PAN apart from the rest of the industry, or is there any other values?

The difference between our strategies and other companies’ might be summed up in 3 points:

First, it is about the core value of The PAN Group. Since PAN was founded, we’ve always passionated on sustainable value; we aimed to create high quality products in a close value chain. We are always consistent and put huge effort towards the mission of “Advancing the Vietnamese agriculture and food industry”. We have become what we have been pursuing - the group of mostly the best companies in agricultural and food industry.

Second, we focus on quality, not quantity. Instead of producing and selling low value products, we produce deep-processed, high-value-added and brand-name agricultural products to con-quer both the domestic market and the most demanding mar-kets such as The United States, Europe, Japan… It is not easy to fully meet strict international standards in different market on food safety and traceability. But we are proud that PAN Group is doing it very well and has been well recognized by the customers and partners in international markets.

The third, as Deloitte mentioned, it is creating values that spread to stakeholders to jointly build and develop a sustainable ecosys-tem. We understand that our company only really grows when the surrounding ecosystem develops, and stakeholders in the same value chain all get benefits. For example, we always con-sider farmers as important partners in our ecosystem and want to share benefits with them. We don’t take land from farmers, but conducting contract farming with them so they can cultivate on their own land. We provide them input materials, guideline, and human assistance on site to apply and maintain standard farming processes and guarantee output’s quality. Currently, we succeed in the fields of rice, cashew nuts, coffee and seafood.

The Editor BoardThe PAN Group

We consider the benefit of the farmer to be the true

driving force behind our success

10 11

Economist Pham Chi Lan – Member of the Jury: Using international standards as the new measures

This is a very meaningful program, bringing international standards as the new measures for private Vietnamese businesses to compare their businesses with the others in the region and the world. The program provides insightful tools for businesses to understand what are the most important aspects in business governance, what are the main challenges to overcome to become Best Managed Companies.

Mr. Bui Tuan Minh, Deputy General Director in charge of Private Enterprise Services - Deloitte Private in Vietnam: I’m not surprised that PAN won the award

Following PAN closely from the very first days of the program, I was impressed with the operation of the management system and PAN’s positioning as a pioneer in every aspect. The Man-agement Board always prioritizes building a unique corporate culture by cultivating the diversity of all member companies. Creativity and innovation are the key values of every member of the Group. PAN is implementing the “go global” strategy to bring Vietnamese high-quality agricultural products to major export markets such as Japan, the US, Canada, Australia, etc. I believe this strategy is the launching pad to help PAN gain its prestigious position today.

Congratulations to PAN for being one of the first Vietnamese private enterprises to join the community of 1,000 best-man-aged businesses in the world. The presence of PAN affirms the position of Vietnamese enterprises in this network of prestigious global enterprises and corporations.

EXPERTS’ OPINIONS

PAN STORIES

All 19 provinces and cities in the East and South West carried out social distancing rules according to Directive 16. Sao Ta officially applied the “3 on-site”

The Group urgently supplied test kits for companies in affected areas.

AN OVERVIEWOF THE 4TH COVID-19 WAVE

The 4th wave broke out across the country with the first case recorded in Yen Bai

27/4

Yen Bai Hours

9/7

Distancing

Vietnam hit the point of having more than

cases after a year and a half battling COVID-19.

12/6 10,000

T.5VFC actively applied digital technology to access the market, implementing the “Backing farmers” program 4.0. The VFC-Pestman team

for customers and partners nationwide.

conducted

after

Lafooco was the first company in the Group to deploy the

model. Bibica, PAN Food, VFC soon followed in their factories in Long An and Dong Nai.

13/7

3 On-site

Sao Ta quickly harvested nearly

of shrimp in while the number of positive cases in the province increased to double digits. Many areas were blocked off, transportation faced difficulties.

The PAN Group organized the annual

The Summit discussed the measures on how they can respond to the new complicated situation across the country.

1,000tons4-16/7

15/7

10 days

7219/7

CEO

Summitvirtually

UPDATED ON 21.10.2021

DisinfectionSpraying

Ho Chi MinhCity started rules according

to Directive 16.

Social

The battle is not going to end soon. We will need to concen-trate all the resources to win this battle. It’s very important to isolate and slow the spread of COVID-19. However, it’s equally important to maintain production and the supply chain, to gradually reopen business and adapt to the new normal as outlined by the Prime Minister

Chairman of The PAN GroupNguyen Duy Hung

Starting with the outbreak on April 27, the 4th wave of

COVID-19 in Vietnam is way more severe than the previous ones. The Delta variant that could spread rapidly has completely changed the situation. The number of cases reached a new high, the number of deaths increased sharply. It’s more and more difficult to control the outbreak. However, the belief and solidarity of the team would never be knocked down.

PANinsight PAN STORIESQ3 | 2021

1312

launched a series of campaigns tosupport farmers to

Vietnam recorded more than

cases of COVID-19 nationwide. 62/63 provinces and cities recorded COVID-19 cases, of which the highest number of cases were in Ho Chi Minh City, Binh Duong, Dong Nai, and Dong Thap.

26/7

16/8Thanks to good control of the outbreak in the local area

production, gradually increasing labor and productivity.

100,000

VFC1/8

Sao Tastopped3On - Site

Bibica organized “Mid-Autumn Festival For You” season 2 in 17 provinces

were handed to children affected by COVID-19 in isolation areas.

21/9

21/9

21/9

22/9

1/10

10,000

SAO TAworkforce

21/9Western provinces, especially Soc Trang, were under pressure when tens of thousands of workers flocked to their hometowns after Ho Chi Minh City, Binh Duong and Dong Nai loosened social distancing rules. The rapidly increasing

The company quickly conducted rapid tests for all employees. All tests were negative.

1/10

cases put pressure on Sao Ta

Num-berOf F0

GIFTS

From the beginning of October, Long An abolished the “3 on-site” rule.

From 13 October, the Bibica factory in Bien Hoa was officially back to full operation. On October 15, Binh Duong relaxed social distancing rules.

FACTORYBibicareturned to normal operation

fully recovered its

Long An & Ben Tre successfully controlled the outbreak.

production activities in the new normal.

LafoocoAquatex

Ben Tre&gradually restored

5.6Vinarice

tons of rice

donated supported

to people affected by COVID-19 in communes in the Thap Muoi district.

29/8

Aquatex Ben Tre implemented modelas per the directionof the People’sCommitteeof Ben Tre.

20/7 4 on-site

9/9

10,000

VFCimpoverished householdsbeing affectedby COVID-19 in provinces in the East and Mekong Delta region. 584 Nha Trang cooperated with Military Region 7 to support Ho Chi Minh City to combat COVID-19.

Bibica officially introduced

a retail digital transformation platform to help distributors, agents, and customers easy access and shop online during the pandemic.

MobileApp

18/8and returned to the “road”, accelerating towards completing the goals of 2021. The number of employees reached the same number as before.

battle the pandemic - stick to the fields - increase productivity.


1514

THE IMPLEMENTATION OF THE “3 ON-SITE” REGULATION AT SAO TA: IIn early July, Sao Ta’s shrimp farm was planning to harvest over 100

ponds. “We decided to focus all resources on harvesting shrimp. If the harvest was not completed while the shrimp farm area was restricted,

the lorries could not get in, the financial loss would have been tremendous. Immediately, we used all resources to complete the harvest in 10 days, with days working until 2 am to meet the target. Just 2 days after the “frantic sprint”, the COVID-19 positive cases in Soc Trang increased to 2 digits.

Sao Ta at that time had 4,000 employees and housed 1,400 people. The list of people who could participate in the 3OS production organization as well as their basic bedding items such as tents, mosquito nets,... had been well prepared. Sao Ta leaders held their breath and waited for the announcement from the officials.

The official announcement about the 3OS application in Soc Trang came on Friday, July 16. In the middle of the vast ponds full of water where the company operates, Mr. Luc likened his situation at that time to “being surrounded by fire”.

“These July days are unforgettable. The Covid-19 development is unpredictable, surprises come with no warning every day, we have run the whole gamut of human emotions from high to low… We have only three days left before Directive 16 takes effect.” he wrote on the company website.

Thanks to the thorough preparations, at that time, Sao Ta’s leaders and support system clearly outline the 4 most important points to implement the 3OS:

Firstly, workers need to participate voluntarily.

Secondly, the company has to ensure a good living conditions by providing adequate accommodations with three nutritious meals daily.

Thirdly, all activities including working, eating, and resting of workers must comply with the 5K in confined spaces.

Fourthly, to ensure unpermitted production, all workers, especially drivers, must go through periodic testing and have negative results.

“So let’s do it!”

On July 13th, enterprises in Long An began implementing the “3 on-site - 3OS” according to the province’s pandemic prevention regulations. Lafooco, another member of The PAN Group, is not an exception. This is the first experience of the PAN ecosystem when facing a new pro-duction situation when the social distancing measure was tightened to cope with the new developments of the Covid-19 pandemic.

Observing what happened at Lafooco, Sao Ta’s Chairman, Mr. Ho Quoc Luc understood that the Government would soon introduce the same pandemic prevention measures to other regions, as a result, the 3OS lessons from Long An could help Soc Trang a lot in the next few days. He began to study, observe and learn from Lafooco’s experience.

When surrounded by…“fire”


1716

According to Mr. Luc’s calculation, the request for obeying the 3OS rule to Sao Ta’s leaders was “gentle, not too harsh”, although a large amount of preparation in a very short time caused “more sweating than ordinary days”.

In the first hours of “the sprint for 72-hour” of the 3OS preparation plan for 1,400 employees at the factory, Sao Ta had to multitask including completing the 3OS registration document, adjusting its contents to suit reality, creating a training plan for Covid-19 on-site screening team and managing its facilities for board and lodging.

At that time, by taking advantage of every space in the warehouse and canteen, there was just enough room for processing workers to eat and sleep at the company. Meanwhile, 50% of employees in the office work remotely.

“It is not fun when doing business without difficulties! I told my team that difficulties are opportunities for people to show their bravery or at least make them more mature. Therefore, we have no worries when facing difficulties” he said.

Preparing on the weekends made the company stumble because it could not get information when all administrative offices were closed and failed to make payment when the banks did not work overtime. Moreover, the ordered test kits did not arrive in time. Therefore, the company had to use its backup plan by asking for the Group’s help.

“The test kit supported by the PAN Group arrived two days ago, enough for four factories and one manufactory to carry out the testing. How lucky we are!”, Mr. Luc said.

Early on Sunday afternoon, the company’s leaders waited for news from the meeting of the province’s officials about rules and regulations governing the production organization and operation of enterprises under Directive 16. Accordingly, Soc Trang requested all employees working in companies must be transported by car and adopted the 3OS.

“It’s all in the plan”, Chairman of Sao Ta thought.

On the morning of July 19, Sao Ta started implementing 3OS. The leader of the company reminded everyone at Sao Ta that “the adoption of the 3OS can last for months not weeks so that everyone should be well prepared”.

The biggest concern of the whole company is how to prevent Covid-19 from “spreading” to them. According to Mr. Luc, pandemic prevention is now more important than production organization. “If the production organization is good, but the epidemic prevention is weak, the production will have to be shut down. Now

it’s not a dual-task anymore, pandemic prevention becomes the primary priority,

production is the second,” said Mr. Luc.

Currently, the business is housing workers with three free meals per day, conducting routine screening testing, and paying salaries as normal. With only 1/3 of the workforce staying at the factory to maintain operations when implementing the 3OS, the company’s leader said that Sao Ta still ensures the plan thanks to its initiative.

However, the lack of COVID-19 vaccine can severely affect the seafood industry,

the Vietnam Association of Seafood Exporters and Producers has warned. The company also soon writes an apology letter to customers in case the company fails to adapt to the further development of the pandemic.

“They also suffered because the business plan could be affected. We do 3OS not to increase profits. We maintain production to ensure income for workers and outputs for partners. We can only move forward by sharing the burden. If we close the factory, the customers will suffer,” Mr. Luc said.

What worried him the most was not productivity or orders but the lives of workers who could not stay on site. “If having no work for a long time, workers would struggle to survive. After stabilizing production, we give them some advances to live on. They can’t wait till the subsidies arrive,” Mr. Luc said.

Time slips away. From September 16, Soc Trang was the first province in the

Mekong Delta to announce a new normal after the COVID-19 was under control. Sao Ta also quickly recovered production and sped up to meet the goals of 2021.

On September 21, 100% of employees returned to work. The company was ready again to process materials for signed orders.

“It’s not only an increase in the workforce. Workers returned to work with a totally different attitude. They were more proactive and hard-working as they had no income for a long time (in this industry, workers get paid by product outputs - Editor).

Previously, they only worked eight hours. But at that time they were willing to work 9, 10 hours, or even more. That’s why our output in the second half of September increased significantly. Our revenue in

September reached 22 million USD, up 21% over the same period,” Mr. Luc said.

However, another risk appeared. In early October, workers from big industrial cities flooded into the Mekong Delta, many of them have not been tested and contained a major risk of another outbreak. From 9 am on October 3, the People’s Committees of the localities in the area stopped issuing new travel permits (except for special reasons). Soc Trang also tightened checkpoints to control the movement of people in the province.

Sao Ta’s immediate response was to reduce inputs to 2/3 of normal conditions. However, more bad news came. From 5 to 7 October, Khmer workers would have a holiday to celebrate the Sene Dolta

The sprint for 72 hours

Living by the “3 On-Site”

Unexpected changes

Sao Ta quickly completed harvesting nearly 1,00 tons of shrimp overnight to keep up with the production schedule. Meanwhile, the number of positive cases in the province increased to double digits, many areas were in lockdown.

On-site production, On-site dining, On-site resting

With only 1/3 of the workforce participating in 3OS, Sao Ta was still able to maintain its business plan

thanks to proactive measures

“It’s not only an increase in the workforce. Workers returned to work with a totally different attitude.”

“Difficulties are opportunities for people to show their bravery or at least make them more mature.”


1918

uneven levels of skill and an unsettled state of mind, workers could not improve productivity, and errors were bound to happen. Knowing this, Sao Ta switched to raw materials production, doubling productivity, so that farmed shrimp could be processed on time and there’s enough stock for the year-end when the farming season is over.

• Implementing Directive 16 of the Government, all provinces restricted movements. Harvesting and transporting shrimp became difficult. On top of this, farmers did not have easy access to stocking resources for the next crop. Shrimp prices also dropped quite significantly, discouraging farmers not to stock new crops. Estimating that there would be a shortage of raw materials at the end of the year, Sao Ta successfully completed the stocking of the second crop for 320 shrimp ponds despite the difficulties of the pandemic. We could only pray to God that this Q4, Sao Ta will not be short of raw materials like other companies.

• When the situation escalated, it was not possible to travel. If the facilities could actively resolve their own issues, the Management team would have less pressure. This is "the last drop of water" for Sao Ta to move its agro-processing plant into independent operation. Previously, the PAN Group initiated this strategic plan to promote inner strength and create conditions for the local team to have opportunities to demonstrate their capabilities. Besides, this factory has been in the market for 13 years and has been quite stable. So in this context, in early 2021, Sao Ta welcomed a new member, Khang An Food Joint Stock Company (Khang An Foods - KAF).

• Similarly, to promote inner strength as per the direction from PAN, for early 2022, Sao Ta makes an agreement with KAF to merge KAF’s shrimp farming project with Sao Ta farms (TanaFarm) for co-farming. TanaFarm will provide materials

and traceable pond codes to Sao Ta and KAF. This will enable KAF and other businesses to focus on their main business, eliminating the need to build an additional farming department within KAF. In the long run, a merger can form a shrimp farming enterprise whose two shareholders are Sao Ta and KAF.

Challenges have become the inspiration for Sao Ta to find new opportunities. Prime examples include the establishment of an Agricultural product factory, the predecessor of KAF. This was in 2008 when the global economic crisis was at its peak. TanaFarm was formed from the foundation of Sao Ta’s shrimp ponds originally established in 2012. It was at the peak of a prolonged shrimp disease, from 2010 to 2015. And the Tin An factory was also established at the height of the US-China trade war. It can be said that after two years of the pandemic, FMC has had more motivation to restructure itself more appropriately and beneficially.

Humbly speaking, those milestones could not be achieved without the support of PAN. Thanks to the timely actions of the leaders of PAN, Sao Ta was able to see the problem more clearly and make better and quicker decisions. It’s also thanks to the support and encouragement from PAN that Sao Ta could have more energy and inspiration to find the above- mentioned opportunities.

There’s still a long road ahead. However, KAF can boast of its good achievements after just nine months. This includes new customers, new products, increasing sales, and consistent efficiency. The company has just also been assigned a shrimp farming project by the Provincial People's Committee, which will be a part of Tanafarm. Hopefully, by next year Tanafarm will bring even more good news.

festival which would attract large crowds.

Another bad news is that one seafood processing business in the province recorded a suspected case of COVID-19 on 3 October. On the morning of October 4, Sao Ta’s first task was to check on the employees.

“Sao Ta reviewed all the employees who have connections to the workers of that other company. Then, we conducted tests for over 100 of those employees. Fortunately, all the tests were negative. That afternoon, another bad news. Some communes in the area conducted quick tests and the positive rate was quite high. The company once again reviewed and conducted tests for workers living in those communes. Such a wonderful life full of surprises!” Mr. Luc said.

COVID-19 affects entrepreneurs more than anyone else because they are responsible for the lives of hundreds or thousands of employees and their families. Sao Ta’s story about the “battle” against COVID-19 is a long and inspirational one, in which we see courageous captains with timely strategies in each phase of the pandemic. Most importantly, no matter what the situation is, the whole team is always united and has great perseverance to overcome difficulties. “It’s been almost 2 years since the pandemic. The results show that our direction is appropriate. To be honest, I’m not so worried anymore. Gradually, we feel more and more confident and positive”, Mr. Luc acknowledged.

I’m learning. When I say this, people would assume I’m going back to school or some sort. What I meant was

I was going to find new opportunities. There’s a “go” in that sentence but I’m not going anywhere. I sit here, pondering to find new opportunities and plans for achieving beneficial goals.

“Opportunity” is a bit abstract. Seeing the opportunity is thinking of the right solution at the right time and seizing the opportunity with specific plans and actions. It sounds simple, but it's confusing when you put your hands on it. It takes a pretty solid foundation to be able to see opportunities. That foundation is bravery, knowledge, and experience; is the acumen in analyzing information. Enterprises that can foresee opportunities will get ahead in business, thereby creating resilience to reach new heights. Two years after the pandemic, Sao Ta has made efforts and has seen many business opportunities. Here are a few examples.

• In the outbreak, people have to keep their distance. By the same rules, the Sao Ta shrimp farm did not open the doors for visitors or workers. Minimizing access to the farm, which is normally difficult to do, would also decrease the risk of infecting the shrimp ponds. Unable to go out, workers would find more time to take care of the ponds. That might be an important factor in the extremely successful harvest season. No ponds were affected by the disease.

• When we implemented “3 on-site”, only about 40% of workers were able to participate. Workers from multiple factories must gather in a few selected ones to make sure there were enough people to run the processing lines. With

Hero of Labor, Dr. Ho Quoc Luc Chairman of the Board of Directors Sao Ta (Filmex VN)

Challenges have become the inspiration for Sao Ta to find new opportunities. After two years of the pandemic, Sao Ta has established two new businesses - Khang An Food Joint Stock Company (Khang An Foods) and Tan Nam Company Limited (Tanafarm).

All three form a solid relationship, mutually supporting one another. President Ho Quoc Luc acknowledged the success of these ventures, saying, "Perhaps ‘thanks’ to the pandemic, Sao Ta has more motivation to restructure itself more appropriately and beneficially”.

The Editorial Board would like to publish the full story of the respectable "captain" about the journey to find new opportunities, turning risks into opportunities in the pandemic.

Editor’s Note:

Ho Quoc Luc

Chairman of the Board of Directors Sao Ta

The Editor Board

The PAN Group

I'm finding theOppotunities

in the pandemic

““PANinsight PAN STORIESQ3 | 2021

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In July, COVID-19 broke out and the situation escalated quickly. The Management Board of Aquatex Ben Tre began to worry when the number of infections in the community increased continuously day by day. The company sat down to think about the worst-case scenarios and response solutions. In the first days of September, the situation was basically under control, production and business activities also gradually recovered.

Photo 2: Nutritious meals for employees

Photo 1: Workers listened to regulations on pandemic prevention.

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looked forward to the end of the 2-week separation time so that everyone could go home (according to the initial distance notice of the authorities). In order to relieve homesickness, the company organized many entertainment activities such as karaoke contests, billiards competitions, etc.

Then a long week passed, and the outbreak became more and more serious. A large outbreak started right next to the company with many serious cases. Everyone suddenly realized that they were extremely lucky when the company organized 3OS in time to ensure the safety of everyone. Everyone also understood that this outbreak was very

difficult to control and the isolating time would be longer. They needed to get familiar with the new lifestyle.

People started getting more cheerful. Smiles appeared more often than dark eyes due to lack of sleep. And so the 2nd week went by faster.

Workers conducted a quick test before entering the “3 on-site” accommodation.

The disease began to break out strongly in Ho Chi Minh City, Long An, especially the neighboring city of My Tho, and community infections began to appear in Ben Tre. The authority of Long An consecutively issued strict blockade orders, 3 on-site productions (3OS), and mandatory closure of some businesses. My Tho and Ho Chi Minh City soon followed. The company’s board of directors understood that very soon Ben Tre would also apply the same policies. So from July 10, the company started planning to implement 3OS production. On July 19, nearly 180 employees of ABT officially moved into the company to live together and protect each other against the pandemic.

The first week passed by so slowly. Many people could not sleep at night because they were not used to the place, not used to the new routine. Everyone

It was such a rollercoaster of emotions

In the 3rd and 4th week, everyone started feeling happy that they were taken care of in every aspect, from daily meals to activities. Time passed by very quickly. On September 17, the company received a notice that Ben Tre province had basically controlled the outbreak and officially eased the distancing rules. This means that everyone could go home and the company started planning new operating plans in the new normal.

On September 19, the company conducted quick tests so that everyone could return home safely. It was such a strange feeling for everyone. They were both happy to go home and at the same time sad to say goodbye to colleagues who had been closely attached for the past 2 months.

Just to talk a bit about “3 on-site”. Due to specific working conditions of 3OS, many workers could not participate because of various factors such as family circumstances, fear of infection, etc. It was difficult for the company to

ON-SITE

The emotional rollercoaster of


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Right before welcoming employees back to work, the company organized a quick test for 100% of employees to make sure all were negative.

Workers conducted a quick test before en-tering the “3 on-site” accommodation.

Photo 3: Workers enjoyed live entertainment at their resting place.

Currently, the company has returned to production with the same capacity as before and is trying to gradually increase daily production output.

Phan Huu Tai CEO of Aquatex Ben Tre

Photo 2: Nutritious meals for employees

Photo 1: Employees enjoyed entertainment facilities in the accommodation outside working hours.

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mobilize the workforce. Only 30% of employees registered to participate, leading to a significant reduction in operating capacity.

The company could only produce clams and repack fish products, leading to a significant increase in production costs. Not even to mention the cost of antigen tests and sponsored meals for employees. During this period, profit was not high. However, thanks to the efforts, the company still maintained orders for clams and fish products. The company did not lose any customers but also found some new customers and gradually reduced the piling stock of fish products. By signing many new contracts, the company could stabilize production activities.

As a preventive measure, the company limited contact with people from outside. Employees strictly complied with prevention regulations. As a result, all weekly quick tests of over 1,175 samples returned as negative. The company met all the requirements

of the 4 inspections of the inter-sectoral delegation of Chau Thanh district and the district police on 3OS conditions.

As soon as Chau Thanh district achieved a new normal state and switched to implementing Directive No. 15/CT-TTg, the company stopped all 3OS activities from September 19, 2021. The company quickly notified the Chau Thanh District People’s Committee to organize a quick test at the Tan Thach Commune Health Station for all workers. The company

made a list of employees to send to the District People’s Committee and notified the People’s Committee of each commune to monitor and manage according to regulations.

From September 22, 2021, the company switched to new production and prevention plans under new normal conditions as per the guidance of the provincial Department of Planning and Investment.

On the first day of production resumption, despite difficulties due to strict control of travel by localities in the province, almost 100% of employees returned to work. This was due to the company’s good implementation of 3OS.

Moreover, the company received a large number of applications from workers in other factories in the same industry. Currently, the company has returned to production with the same capacity as before and is trying to gradually increase daily production output.

Currently, the number of vaccinated employees at Aquatex Ben Tre is gradually increasing. Right before welcoming employees back to work, the company organized a quick test for 100% of

employees to make sure all were negative. Then, the company organized a screening test every three days for 20% of the employees instead of every 7 days according to the regulations of the Ministry of Health to reduce risks.

All these measures are being taken to reduce loss. The safest solution is still to inject two doses of vaccine for all employees.


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RESILIENCE AGAINST COVID-19

LAFOOCO

As soon as the People’s Committee of Long An issued decisions on vaccination for local businesses, the Management Board of Lafooco quickly organized vaccinations for all employees meeting the health requirements of the Ministry of Health.

As a leading enterprise in exporting nutritional seeds and dried fruits, Lafooco is determined to keep the “Trust” its customers gave them and maintain the import/export progress.

During the 3OS period, the company faced difficulties as there were strict regulations on intercity transportation. However, with persistent efforts, the company successfully solved the issues by contacting all the leading transportation services and constantly updating the progress with customers.

It is the key to helping Lafooco connect with customers better. Only by overcoming the challenge together, the bond between the two parties can be stronger.

With early measures to eliminate the risk of COVID-19 in production activities, Lafooco completed the preparation of 3 on-site (3OS) immediately upon the official dispatch of the People’s Committee of Long An as well as the Government’s Direction. Starting from midnight on July 13, 2021, Lafooco was the pioneer of the Group to deploy the 3OS model.

Since the pandemic started to break out in early May 2021, the company has seriously followed the 5K motto of the Ministry of Health. To standardize a proper procedure, Lafooco openly discussed anti-pandemic measures and guidance on how to implement them both at work and home with all employees.

According to the guidelines, the employees must have their body temperature checked, wear face masks, and daily conduct health declarations through the ‘Bluezone’ application or in paper at the company’s entry.

“3 on-site” and vaccination

Keep trust with partners

The company also disinfected prominent places to ensure the best hygiene conditions for staff, avoid mass gathering, and maintain a safe distance of at least two meters between individuals at the workplace.

The company provided three nutritious meals a day for the employees to relieve their anxiety while obeying the regulations and performing their duties during the implementation of the motto: “3 on-site”. The plan to overcome the pandemic was clearly outlined and

strictly implemented, helping the company maintain its production activities for more than 2.5 months.

To ensure the physical and mental wellbeing of the workforce at 3OS, the company conducted Covid tests for all employees and organized rest areas according to social distancing guidelines.

Unlike 2020 when output was a prerequisite, amidst the 4th wave of COVID-19 in 2021, Lafooco outlined a plan to “proactively isolate” to ensure productivity and maintain supplies for customers. It is a thorough plan from product development,

Lafooco workers conducted Covid-19 tests before entering the “3 on-site” factory.

The factory and the canteen were equipped with a faucet system for washing hands and a dryer. Keep a distance of 1.5 m between workers to ensure safety.

Constantly sanitize your hands

production technology application, digital transformation to e-commerce development, which has contributed significantly to maintaining the production capacity of the company during this turbulent period.


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During the pandemic, it’s extremely important to find new customers to maintain production at the company as it’s also difficult to retain customers when freight rates are skyrocketing. By participating in Alibaba - the largest B2B trading platform in Asia, Lafooco was able to find new customers and partly solved the difficulty of not being able to participate in international expos.

In the domestic market, Lafooco appeared on all the largest e-commerce platforms such as Shopee, Lazada, Tiki, and the company’s own online store (http://lafoocostore.vn). By utilizing e-commerce platforms, Lafooco was able to send products to consumers all over the country despite strict social distancing rules. The motto of the company during the pandemic is “As long as the shipping companies are still in operation, Lafooc’s products have to reach consumers”.

With this stepping stone, Lafooco’s products are receiving great feedback from consumers, which is reflected in the number of transactions and reviews on e-commerce platforms.

Cover all e-commerce platforms

Photo 1: The dining area is 288 m2, tables are arranged at safe distance with partitions.

Photo 2: Early in the morning, the work-ers folded the curtains, pillows, and blan-kets, put them on the shelves, then had breakfast and started a new working day.

Photo 3: The company arranged a sensor disinfectant sprayer so that workers before and after coming to the dining area could disinfect their hands.

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With the smooth and consistent coordination of each department and high determination, Lafooco has successfully completed the two goals set out in the 3OS period, which are to ensure the health and income of employees and maintain the production chain to complete the business plan of 2021.

September 22 marked the milestone that the company started to gradually return to normal production activities, complying with the latest plan of Long An Provincial People’s Committee. The boat Lafooco was on has just gone through a big wave and is now continuing to return to a safe berth, ending a long and challenging journey and recharging for a new one.

Restore productivity

Huynh Thi Ngoc My Deputy General Director of Lafooco

R&D of new products at an incredible speed

Lafooco launched many new products such as cashews flavored with sea salt coconut and sea salt caramel which received great initial responses.

Another important link of Lafooco in the pandemic is the R&D department, which has launched several new products such as cashew with sea salt coconut and sea salt caramel flavors. These products have received a great initial response from the market. Only 1 month after the launch date, the products received orders from wholesale customers in China and Hong Kong. In the US, these two products were continuously on the list of Top 100 Amazon Best Sellers.

Because the prolonged pandemic led to the delay and inability to access raw materials, the R&D department flexibly changed the plan to prioritize researching new products from existing raw materials sources. One of these new products is Granola - oats combined with nutritious seeds and dried fruit. The product promises to offer a quick, convenient, nutritious, and healthy meal to consumers.

In addition, the R&D department focuses on in-depth research on measurement methods and quality reports for each product line with a higher level of accuracy. To overcome the difficulties, the department utilized 4.0 technology to provide guidance and support in maintaining the quality management system certifications - HACCP, BRC, HALAL, USDA, and EU Organic.

As a leading enterprise in exporting nutritional seeds and dried fruits, Lafooco is determined to keep the “Trust” its customers gave them and maintain the import/export progress.


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PANinsight Quý 3-2021

30

FIGHTING WARS AT THE EPICENTER OF THE PANDEMIC

SHIN CA PHE

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PAN STORIES

t that time, the 3OS model proved effective in Bac Ninh and Bac Giang in slowing

the spread of COVID-19. Therefore, when the 4th wave broke out, many southern provinces and cities decided to apply 3OS. It was the best solution at the time for businesses to maintain uninterrupted production. It’s a difficult but necessary choice.

In the last two years, the pandemic has never broken out as severely as in this 4th wave. The number of Covid patients increased rapidly. HCMC became the epicenter with thousands of new cases daily. At that time, SHIN Ca Phe’s production was at its peak to finish orders for both the domestic and foreign markets. Most importantly is the order to produce and export coffee filter papers to China and Hong Kong.

This is considered an important strategic partner of SHIN Ca Phe in accessing the global market and enhancing Vietnamese coffee and agricultural products in the international markets.

“It is not easy to meet the quality standards for an export order during the pandemic. We always set strict

Right when deciding to implement 3OST, Mr. Hau instructed the workers of the factory in Nha Be to quickly prepare personal belongings and food to start a “war in peacetime”. Workers were provided with mats and blankets to sleep at the factory during this period. To separate the living area and the production area, the management team used the quality control room on the 1st floor as the resting place for workers.

The initial difficulty was to maintain the workforce. Most of the workers stayed in “red zones”, so there was a limitation in the number of workers who could meet the requirements to participate in 3OS. Due to the reduced workforce, workers had to work overtime to be able to meet the order schedules. This led to an increase in production costs and affected the health of employees.

Fighting COVID-19 at the “3 on-site fortress”

Towards the realization of “dual goals”

After 10 pm on July 23, 2021, after receiving news about changing production strategy, Mr. Huynh Phuc Hau - Factory Manager of SHIN Ca Phe quickly coordinated to prepare for “3 on-site” (3OS) at Lot 11A, Hiep Phuc Industrial Park, Nha Be, District 7, Ho Chi Minh.

requirements for input materials as well as packaging process,” said Mr. Ho Minh Phu, Export Business Development Manager of SHIN Ca Phe.

For that reason, the company quickly built the “3OST fortress” to fight against COVID-19 and ensure orders were delivered on time.

However, with a high sense of responsibility, the team still tried their best to complete the orders on time.

Food and other necessities were ordered every 2 weeks and delivered to the site by a supermarket in the same district. Goods were disinfected before receiving to ensure strict compliance with 3OS. Among the “warriors” on duty at the factory, Vo Thanh Sang was considered the “big brother” despite being younger than other members. It is because Sang was responsible for cooking and maintaining the schedule of all members. During the war back then, there were “big brothers” who were beloved by people and comrades.

Now, at SHIN, there’s a “big brother” who takes care of the wellbeing of the whole team. Never have all the workers in the factory experienced a “war in peacetime”, nor lived together and “raced” to finish orders in such harsh conditions.

The company also carried out weekly COVID-19 tests for employees. Test results were reported to the HR department and the HR would take immediate actions if there was a positive test. Despite having a small team, each member strictly implemented the requirements of food safety and hygiene and social distancing guidelines.

Mai Huong - Thanh Thuy SHIN Ca Phe

Rise above crisis

SHIN’s employees have been working tirelessly since the start of 3OS at the end of July. Due to the reduced workforce, each member had to finish their part while carrying out other extra duties. During a hot summer, workers had to work in a closed environment and must wear full-body protective clothing, gloves, and masks. However, Mr. Nguyen Duc Thang, Production and machine operation supervisor, spoke to us with a huge smile on his face.

“In the first days, because I had not adapted to the new living conditions, I couldn’t sleep for days. Besides, it’s also difficult to order food as shippers could not deliver on time. At such times, we had to temporarily eat instant noodles. Despite difficulties, I and all the people here still worked with our best efforts to complete the order and help the company overcome this difficult time. I also hope that the pandemic will soon be over so that everyone can return to normal life,” he said.

In 2021, the COVID-19 pandemic continued to break out, causing a decline in coffee export volume from many coffee regions in the world to Europe, Hong Kong, and China. However, Vietnam’s coffee industry is having a good signal, that is, the value of processed coffee products is increasing due to a lack of supply in the world. To meet the demand of the global market, many businesses such as SHIN Ca Phe have chosen to adjust production methods and improve the quality of raw material areas to improve the product value.

According to the General Statistics Office, due to the impact of COVID-19, many agricultural products of Vietnam need to be “rescued”. Meanwhile, coffee exports have also decreased, but not significantly. In the first 2 months of 2021, our country’s coffee export was

Despite having a small team, each member strictly implemented the requirements of food safety and hygiene and social distancing guidelines.

Despite difficulties, I and all the people here still worked with our best efforts to complete the order and help the company overcome this difficult time.

estimated at 271,000 tons, equivalent to 474 million USD, down 18% in volume and more than 15% in value over the same period last year.

Therefore, export orders to Hong Kong, China are considered rare opportunities that SHIN Coffee must seize to create a foundation for a “resurrection” after the pandemic. During this period, Vietnam is suffering a “big storm” affecting people’s lives as well as the country’s economy. For enterprises in the agriculture industry like SHIN, the mission is to step by step protect the business and the economy by taking bold decisions and quickly seizing new opportunities.

A day in mid-September amid the relentless “fight”, while Mr. Hau was busy managing the production progress, Mr. Thang, Sang and other colleagues all focused on diligently performing their tasks with great enthusiasm. Coffee packages were neatly packed into the box. The packaging process for safe transportation has been completed. Everything is aligned for the order to be shipped in time, to welcome a new normal that is coming.

The management team of SHIN drew up many scenarios to turn the situation around. All domestic orders were still processed from the current stock and materials sources. However, it’s still difficult to get enough input materials for production as transportation has been halted.


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When the pandemic broke out in Nha Trang & Khanh Hoa, the cities implemented strict regulations as per Directive 16 of the Government. However, ever since then, 584 Nha Trang still ensured enough supply for the market. There was no supply disruption when partners and customers had demand.

The office team including sales, accounting, administrative and human resources, etc. continued to work remotely. A few remained on-site to receive orders, handle loading and unloading goods, coordinate transportation, etc. The administrative and HR teams were always on alert to comply with the latest announcements and regulations of the local authorities on travel documents, checkpoints, etc.

The office team also cooperated with the technical team to conduct weekly rapid tests and give guidance to employees on following health and safety regulations. At the same time, the company prioritized giving vaccines to all employees.

Production management activities at the branches in Ca Na - Phan Ri have always been maintained uninterrupted. When the fish season was in full swing in July and August, the company resolved issues regarding travel restrictions to be able to buy and transport high-quality raw fish at good prices to production areas.

As for construction and investment activities, despite the complicated situation and difficulties in workforce and construction materials transportation, the construction of new factories at Dien Phu, Dien Khach still went ahead.

Most notably, the branding and R&D activities still followed the set plan. The company successfully launched products with a brand new identity to the market.

From July 31, like other members of The PAN Group, 584 Nha Trang implemented the 3 on-

site (3OS) production. Office staff applied information technology to work remotely. At that time, the office space was utilized as the resting place for the employees doing 3OS. The model took place at the product packaging factory in Nha Trang and the construction site of the product packaging factory in Dien Phu Industrial Cluster, Dien Khanh, Khanh Hoa.

On the most difficult days, the human resources, technical and factory teams coordinated to outline appropriate plans and schedules to maintain the workforce. The teams organized resting areas, set up utilities, and signed contracts with suppliers to provide three meals per day for all employees staying at the company.

584 Nha Trang strives to maintain production and business activities.

584 Nha Trang implemented various drastic solutions to combat the 4th wave of COVID-19. These include focusing on model transformation, reorganizing production and business plan to adapt to the current situation, maintaining the supply chain and transportation.

The company also closely followed the progress of the contract with a supplier to produce 200ml bottles so that the company could develop a new 60-degree protein product with completely new packaging. The company at the same time conducted registration for industrial design protection for the product. It is expected this high-end product will be launched in late 2021 - early 2022 to be ready for the Lunar New Year.

With persistent efforts to overcome difficulties, in July and August, 584 Nha Trang reached revenue of 40.8 billion VND (98% of the same period last year), imported and put into production nearly 1,000 tons of fish.

During this breakout, the management team and employees at 584 Nha Trang have managed to maintain production activities, produce enough supply for the market, and ensure incomes for all employees. Through this challenging period, the company has increased its resistance to crises. In the coming time,

with the support of the Group, hopefully, 584 Nha Trang will maintain business activities to meet the goals that have been set out.

Truong Duong Thuy584 Nha Trang

“Sweet fruit” for constant efforts

When the office becomes a “resting place”

Construction & investment activities were still maintained

despite the turbulence.

The company actively built new production and business plans to adapt to the new situation. 1

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PANinsight Q3 | 2021

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In the complicated situation of COVID-19, VFC, a member of The PAN Group, successfully used digital technology and social media in business activities. This includes training and upskilling farmers. This article will showcase an interesting perspective on the application of information technology in accessing the market and backing farmers in the 4.0 era.

Editor’s Note

Vietnam is no exception. This change requires businesses to be creative in finding new ways to adapt.

VFC quickly realized the opportunity to use technology and social media in approaching customers and farmers. They do this by upskilling and training the workforce and farmers to improve business. To be more specific, these are skills that are relevant in the digital era.

VFC organized the internal training program “I am backing farmers in the 4.0 era” for the sales and marketing team with the goals of (1) improving

VFC ACCOMPANIES FARMERS TO SLOW THE SPREAD - CLING ON TO THE FIELDS - INCREASE PRODUCTIVITY

Understanding farmers’ difficulties in maintaining production activities amid social distancing measures, VFC launched a campaign to accompany farmers to overcome the pandemic. The campaign consists of a series of programs including “Michelle accompanies farmers to overcome COVID-19”, “Aproach 250SC expert”, “United farmers: Prevent COVID - Limit movements - Diligent on the fields”.

Through the use of digital technology in the program “I am backing farmers in the 4.0 era”, the VFC team developed appropriate content to communicate farming information, pieces of advice, and guidance. This campaign also aims to spread the message of “Together, we fight against the pandemic”, “Sticking to the fields together”, “Increasing productivity”.

The program also helps to motivate the VFC’s team supporting farmers, guaranteeing their compliance with rules and regulations, and ensuring their safety for pandemic control and prevention. With digital technology as “weapons”, “VFC warriors” are always ready to accompany and support so that farmers could rest assured to “cling on to the fields”, to ensure productivity and successful harvest seasons.

The 4th industrial revolution has created a new era of information technology. Now more than ever, the world is more connected and it’s easier for people all over the world to become closer. In 2021, COVID-19 has made significant impacts on the healthcare system and the world economy.

On the other hand, this pandemic has greatly changed the consumption behavior and the use of information technology in society. It is both a challenge and a golden opportunity for technology, social media, and e-commerce platforms.

The company successfully organized an online meeting with farmers in provinces in the East and Mekong Delta region.

VFC quickly realized the opportunity to use technology and social media in approaching customers and farmers.

VFC-PESTMAN IS AMONG THE PIONEERS TO SLOW THE SPREAD OF COVID-19

Joining hands with the frontline workers to slow the spread and control the pandemic, the VFC-PestMan team has conducted disinfection spraying for partners and customers nationwide. The team also offered complimentary disinfection spraying in at-risk areas, limiting the spread of COVID-19. PestMan is a brand of VFC, providing a long-standing and reputable Fumigation and Pest Control service in Vietnam. The team promotes in-depth understanding of pest-related issues.

VFC SUPPORTS 10,000 POOR FARMING HOUSEHOLDS IN EASTERN PROVINCES AND THE MEKONG DELTA REGION

Joining hands with the Government and localities in the fight against the 4th wave of COVID-19, VFC implemented a program to support and accompany poor and disadvantaged farmers affected by the pandemic in the Eastern provinces and the Mekong Delta region. 10,000 gifts including rice, noodles, bottles of VFC disinfectant, etc. were sent by VFC and the integrated and core farmer force to 10,000 most affected farmers.

Following the motto “No act of kindness, no matter how small, is ever wasted”, VFC wishes to contribute a small part in accompanying farmers to overcome the pandemic and return to normal life. VFC also hopes to create motivation for farmers to quickly resume production in the “new normal” condition. This is one of many efforts of VFC to support local farmers aside from the annual volunteer trips and technical support programs. Through these activities, VFC and The PAN Group want to show support to the fight against COVID-19 and carry out their corporate social responsibilities.

The application of digital technology in business activities received a positive response from farmers and customers. It created positive effects in the market and the company was able to carry out new marketing & sales programs suitable to the new harvest season and market opportunities.

Nguyen Van Kha VFC

Even though the situation had escalated with social distancing rules applied in many areas, the four-month internal training has achieved outstanding results. The working atmosphere became more positive despite social distancing rules. Employees’ knowledge, skills, and experiences were enhanced, which consequently improved business results.

the efficiency of each individual in the “Backing farmers” team, (2) creating a platform to promote creativity and increase the efficiency in approaching customers and farmers and (3) helping employees hone their skill set. This will be a solid foundation for VFC to improve productivity and efficiency in the increasingly c o m p l i c a t e d situation.


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The platform helps connect the entire

value chain from manufacturers,

distributors, stores to customers.

On August 18, Bibica held an online press conference "Launching the retail digital transformation platform". The Ministry of Information and Communications and more than 40 media representatives, partners and customers were present during this event.

This is a project in response to the "Program to promote digital transformation and develop the digital economy" initiated by the Ministry of Information and Communications which was considered by the 13th Party Congress as one of the important measures to realize the goal of building and developing a powerful Vietnam.

The two main versions of this mobile app solution include: Bibica Consumers App for consumers and Shops App for retail stores. A highlight of this solution is the application of the Coalition Loyalty model to connect customers, stores, manufacturers with one another and with other partners in the alliance.

On the other hand, App Bibica is an electronic loyalty card. Customers are entitled to incentives, points, and gifts from Bibica and the ecosystem of hundreds of other affiliates. In contrast, partners can approach more customers to cross-sell. This model is similar to the famous T.Point model of Japan, which has more than 60 million members and nearly one million stores participating.

The President of Bibica, Mr. Truong Phu Chien, said that the company used Oracle's ERP for production management, Microsoft Office 365 for operation management, and the DMS system for distribution management. Deploying the Loyalty Mobile App aims to connect customers with retailers and brings more benefits to all outlet

stores which are important and strategic pieces to complete Bibica’s digital transformation picture in the current period.

“The pandemic has severely affected the manufacturing and distribution, causing enormous difficulties for hundreds of thousands of grocery stores across the country. Therefore, providing this digital conversion solution - Loyalty Mobile App is a practical step so that we can take care of and support agents across the country during this difficult time,” Mr. Chien confirmed.

Vietnam's retail industry currently has a market size of 142 billion USD, forecasted to increase to 350 billion USD by 2025. This will contribute 59% of the country's GDP. In Vietnam, there are over 1,000,000 grocery stores. Of these, only a few chains have applied technology, the rest of over 90% still

have to use record books or other manual methods to manage goods as well as all sales activities of the store.

By using the App Shop, grocery store owners can easily manage the entire sales activity of their store. They can quickly order products of Bibica and PAN CG with just one touch by pressing the “Order” button. They can manage all in and out transactions, without wasting time manually recording on the books. At the same time, they can manage all sales and expenditures in the day, week, month within a simple

interface in which anyone can use even if not familiar with the technology.

The App provides a 5-in-1 combo of support functions, including ordering, inventory management, sales, customer care, and management, as well as attracting new customers. This rewards feature also helps link stores together into a chain to increase revenue and customer satisfaction.

Aside from these functionalities, grocery stores can also actively offer promotional rewards programs to take care of their customers and market these programs to new customers. Bibica will also support the marketing and sales programs to attract new customers to the store and increase customer retention rate.

Sharing the vision of the solution, Mr. Tran Duc Tuyen, General Director of PAN CG said, “In addition to Bibica's confectionery products, PAN CG will also apply this solution to distribute many other agri-food products. In the next 2 years, we will deploy the model of accumulating points and exchanging gifts for more than 150,000 stores nationwide. This not only supports sales management but also helps stores link together into a supply chain from producer to consumer, thereby increasing revenue and enhancing customer service”.

The Loyalty Alliance model is very popular and successful in the world, helping customers to be taken care of by many businesses at the same time. It also helps businesses link together to support each other in operation, cross-selling, and customer care services. Bibica hopes this customer care solution in the future will help tighten the connection between businesses and consumers so that businesses could have a better understanding of their customer journey.

Quach ThaoBibica

A digital transformation in the midst of the pandemic

Apply technology to physical outlets

The App provides a 5-in-1 combo of support functions, including

ordering, inventory management, sales, customer care, and

management, as well as attracting new customers.

Applying the pioneering model in the retail industry and following the trend of linking customer care with cross-marketing and cross-selling, Bibica, a member of The PAN Group, has officially introduced its 4.0 platform. Its goal is to create a connected value chain from manufacturers, distributors, stores to customers in the retail industry. It is expected that the company will deploy this platform in more than 150,000 grocery stores across the country to connect them to form a retail chain, thereby helping customers easily access and shop products online.

DIGITAL TRANSFORMATION

PLAT-FORM

BIBICA OFFICIALLY LAUNCHED THEIR RETAIL


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THE “TRAINING COURSE” OF RESPONDING TO CHALLENGING SITUATIONS

There is great potential for the deep-processed food industry that result-ed from changes in consumer habits, due to the impact of the Covid-19 pandemic. In early 2021, Sao Ta Foods Joint Stock Company (Fimex VN) — a member of The PAN Group — founded Khang An Foods Joint Stock Company (Khang An Foods). Sao Ta immediately put it into operation, to specialize in the production of agricultural products and processed shrimp combined with other products.

Khang An Foods is run by Ms. Duong Ngoc Kim, who has more than 40 years of experience in the field of seafood production and processing. Ms. Ngoc Kim was the former General Direc-tor of Sao Ta from 2007 to 2009.

A 9-month-old enterprise coping with COVID-19

What were the reasons for the establishment of Khang An Foods while tens of thousands of companies had to leave the market due to the impact of the COVID-19 pandemic?

The COVID-19 pandemic creates many difficulties and chal-lenges, but it also brings many opportunities. Businesses that have taken advantage of this adversity can see great opportu-nities, such as easier recruitment of workers, early identifi-cation of market trends, and changes in consumer behavior. By doing this, such businesses can launch satisfying products and increase competitiveness.

The COVID-19 pandemic sweeping many countries around the world has changed consumer behavior and habits. Now they shop less and eat at home more. KAF specializes in mixed prod-ucts suitable for consumers who have little time in the kitchen.

The Vietnamese market does not have many deep-processed food manufacturers that meet high standards in fastidious mar-kets, therefore, Khang An Foods’ mixed products such as agri-cultural and aquatic products are well received by consumers.

We are very confident in the experience of a young and dynam-ic executive team with a real knack in the field of food process-ing as well as the ability of the company to invest in factories in accordance with the strict standards of foreign markets.

Mrs. Duong Ngoc Kim CEO of Khang An Foods

Specifically, what is the greatest difficulty?

For the first time, Khang An had to face the situation of gath-ering about 700 workers eating and sleeping at the company premises, which caused great pressure.

However, fortunately, since March, we have constructed an additional factory to process high-value goods, which is ex-pected to go into operation in September. At the time when the 3 on-site measure was introduced, this workshop com-pleted the hard infrastructure, so we had room for about 700 on-site workers with good living conditions that few other companies had.

But that was also a stressful time for me personally and my board of management.

Workers come from many communes, districts, in different situations, and living environments, so the risk of infection was not small. Many businesses organized the “3 on-site” produc-tion but infections still occurred, which made us very worried.

So at that time, Khang An’s main focus was not only on pro-duction but also on the safety of workers. Our view was that safety comes first then followed by production.

The business was founded during the third wave of the pan-demic. It then immediately suffered during the fourth wave, the strongest since the first outbreak. Taking everything into consideration, how can your company survive?

The initial steps of Khang An Foods were very favorable before the fourth wave of COVID-19 hit Vietnam. Due to the applica-tion of intensified social distancing measures to combat the COVID-19 pandemic, production activities faced many difficul-ties. The fledgling company began to face real challenges.

Khang An Foods spent eight weeks organizing the 3 on-site pro-duction, then another four weeks of reducing capacity for pro-duction. At that time, our number of employees only met 30% of the capacity.

However, all things are difficult before they are easy. Having said that, that was a time full of emotions, as we also considered it as a good time for practice, demonstrating our ability to cope with difficulties. We are now happy to announce that we have passed that training course to return to the new normal. And now, we continue to strive to complete our first-year plan.

How did the COVID-19 pandemic push a fledgling business like An Khang into challenges and difficulties?

Although it’s still very young, Khang An has gained the trust of customers and as a result, we signed long-term contracts.During the peak of the pandemic, our factory capacity shrank to only 30%, resulting in the inability to ensure on-time de-liveries to customers. However, the company’s leaders had foreseen this problem, thereby proactively sending letters to each of its customers to inform them about the pandemic sit-uation in Vietnam, stating the problems when production was reduced for our partners’ understanding.

At the same time, the logistics costs were also increasing, if goods failed to be delivered fast, shipping fees would increase even more. Realizing that freight rates were increasing at the beginning of the first quarter, KAF actively negotiated with customers to accept FOB (Free On Board) delivery terms from the beginning of the second quarter for long-term con-tracts. Therefore, Khang An’s loss due to the increase in freight rates is very small.

The company’s customers also said that the impact of the COVID-19 pandemic is a global issue. It’s not happening only in Vietnam, so they have sympathy, although their sales plans have also been affected more or less. With trust in KAF’s product quality and business strategy, customers do not shift orders to other companies. Meanwhile, KAF also tries to fulfill its policy commitments to create the highest trust for customers.

Measurements to combat COVID-19 during the “3 on-site” period at Khang An Foods.

We have completedMrs. Duong Ngoc Kim, General Director of Khang An Foods:

The periodic screening and testing for employees as well as the COVID-19 checks for newcomers was carried out as thor-oughly, carefully, and closely as possible. As a result, during the adoption of the “3 on-site” regulation, Khang An did not have any COVID-19 infections.

Also, luckily, at the beginning of the year, Khang An imported the PCR equipment. It was supposed to be used for the test-ing for shrimp and shrimp farming areas. Instead, the PCR equipment was used to test workers for COVID-19. The cost of Khang An’s PCR test is very cheap compared to the ones con-ducted by external institutes. This is why our company was able to afford regular tests and strict screening.

As for production, because of the small number of employ-ees, Khang An had to choose specific products that match the skills of the existing workforce. Office staff were also mobi-lized to participate in production. The Board of Directors also directly went to the factory to guide the work for external de-partments to carry out. Therefore, we partly solved the prob-lem of production capacity at that time.

In addition to all of these efforts, all employees - from the Board of General Directors to the deputy heads of departments - fol-lowed the 3 on-site regulations, so it also strengthened the mental health of employees, resulting in increased productivity.


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We are focusing on production activities to deliver goods according to the signed contracts. The compa-ny’s current capacity has been much improved. Khang An is racing to the finish line at the end of the year, committing not to affect customers. For the US and European markets, we will complete the delivery of signed contracts by October and continue to receive new contracts for delivery after October.

The COVID-19 pandemic has increased costs and affected the production organization, has your production orienta-tion changed?

Thanks to the adjustment resulting from this pandemic, we realize that in the past, there were not many fac-tories that focused on deep processing. Deep process-ing itself is labor-intensive, and the workers must be trained very carefully. As consumers change their hab-its, they eat more at home, everything has to change to meet their demand.

Khang An’s strategy from the beginning is to focus on mixed and deep-processed products which means in-stant foods that just need to be reheated and eaten without consumers spending much time in the kitchen. Therefore, our products are suitable for the current sit-uation in all markets and this is Khang An’s strength.

What are the plans for the last quarter of the year and the goals for the next few years?

In the near future, we plan to complete another deep processing factory to produce mixed products from shrimp and vegetables. According to the original plan, KAF will put into operation a new factory called Tam An Seafood Factory. This will be in September 2021. However, due to the prolonged pandemic, everything is delayed, so will its completion time be postponed till November. Many Khang An customers have also caught up on this news, so we have received several orders at the time the factory is officially put into operation.

If the pandemic did not break out, it would be possible for Khang An to complete the plan ahead of sched-ule. However, due to the pandemic, the company also bears many additional costs. By the end of September, we had reached USD 40 million in revenue.We still have three months to reach the targets, one thing for sure is that from this moment to the end of the year, we still firmly commit to following the sales and profit targets when the COVID-19 pandemic situation is better controlled. In case the situation gets worse, KAF is ready to deal with it with a smile on our faces!

Thank you for your timeEditor Board

The PAN Group

At the beginning of this year, Khang An set out a plan to achieve USD 50 million in

revenue and VND 50 billion in profit.

Many businesses, after implementing the 3 on-site option, said that this model is costly and ineffective. What is Khang An Foods’ opinion about it?

I think it depends on the calculation of each company.Firstly, Khang An bought the test kit to test its workers, which reduces the cost to 30%. Next is the PCR equipment. If we know how to apply sample pooling, each individual sample costs no more than VND 50,000, compared to the price at VND 450,000 if testing is carried out externally.

Khang An has saved a lot during this time to bring peace of mind to employees during the 3 on-site implementations. At the same time, the testing of SARS-CoV-2 every three days for employees is also strictly implemented, including those from outside coming into the company such as delivery drivers, people who provide input materials for the canteen,... KAF considers them as high-risk infection sources which need to be checked most strictly.

If the company closes, costs from operation such as electric-ity, water, warehouse, and lighting must still be covered. But when the workers stayed at the factory, we could maintain production, even though the output was only 30% compared to normal state. Although costs escalated, we were very happy to fulfil our signed contracts with customers, improving the image and reputation of the company.

In addition, the provision of three free meals for employees, especially in the period that lacked vegetables and fruits to supplement adequate nutrition, was also very concerning for the board of management. Each department head has shown solidarity, making a contribution by cash to buy more fruits, fresh vegetables. They also voluntarily made cakes, yogurts, and nutritious snacks for each serving.

Some farmers who were suppliers of KAF also sponsored vegetables, fruits, and fresh milk from a Japanese customer to enrich the daily menu for employees in the 3OS period.KAF also arranged areas for workers to do physical exercises such as soccer, table tennis, volleyball, karaoke, and showed activities on pandemic prevention propaganda to provide more information for employees.

Operating costs have increased, but in return, KAF has im-proved its reputation among customers. In the most difficult

period, Khang An still maintained production to deliver goods to partners. Money cannot buy a good reputation, you earn it. Therefore, we always receive sympathy from customers.

Our view is that even an increase in costs is not a big deal and is not a huge loss for the company. The positive side of this difficulty is that KAF has just experienced the way to increase employees’ awareness and raise their spirit to better adapt to any changes that may occur. In the event that the Covid-19 pandemic has new mutations or any other disease in the fu-ture, employees will no longer be hesitant, afraid, and selfish-ly think only for themselves.

How is the mental health of employees when they have to work for a long time in the context of production, eating, sleeping at the factory?

A test for the Management BoardProduction lines at

Khang An Foods

The good thing was that thanks to the Board of Directors’ best efforts, employees felt that they were “happier at the company than at home”. Later on, the “3 on-site” organization attracted more workers to register to participate.

The first two weeks were very difficult for the Board of Directors and employees. The management board tried to make employ-ees more joyful, helping them to be less homesick. At the end of this year, we promise the workers that those who participated in the “3 on-site” option will be awarded a travel trip and a raise in their salary, which stimulates their morale a lot.

Another positive was that Khang An was not fighting the pan-demic alone, during the “3 on-site” regulation, the CEO of the PAN Group, Nguyen Thi Tra My, sponsored our workers to participate in the “breathe right” course, helping them prac-tice breathing properly, enhance breathing ability and espe-cially reduce stress tremendously.

After three days of taking this class, I achieved impressive re-sults, negative thoughts disappeared, and I slept very well and felt refreshed the next morning.

The workers also like this class very much, every day at 5 pm they gather waiting for the class to start.

Overcoming the stressful time, Khang An provided motivation to increase its production to fulfil delayed contracts for customers.

Maximize production capacity while ensuring workers’ safety

After the period of applying the strict social distancing mea-sures called 3 on-site, how are Khang An’s production and business situation now?

Khang An Foods employees participated in the “Breathing property” course to increase chest cavity and the amount of oxygen in the body to

support the digestive system.

Bre

ath

properly

The company completed transforming the factory into living space for about 700 workers doing “3 on-site”

During the last 3 months when implementing the “3 on-site” measure, I had difficulty sleeping every night. I did not know whether my workers were infected and I was worried for their health. But at the same time, I also believed in Khang An’s disease control, so I could finally rest assured.

However, most of our workers were young people, they missed home, missed their children, they wanted to go home. In some cases, their children were too young, so we had to drive them home. For other cases, we had to encourage them a lot.


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Lafooco joined hands to support the community throughthe program “0 VND market”.

Bibica organized “Mid-Autumn Festival for you” season 2 in 17 provinces. 10,000 gifts

were handed to children with COVID-19 in the isolated areas.

The PAN Group joined hands to raise funds to support

the frontline workers through the music program

“Thank you for the extraordinary”.


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THE PAN GROUP PAYS TRIBUTE TO THE FRONTLINE WORKERS IN THE

FIGHT AGAINST COVID-19 AND SUPPORTS VULNERA-BLE PEOPLE WHO ARE DI-RECTLY AFFECTED BY THE PANDEMIC. ALL MEMBER COMPANIES OF THE PAN GROUP HAVE CONTRIBUT-ED GREATLY TO THE FIGHT AGAINST COVID-19 WITH APPROPRIATE SUPPORT PROGRAMS.

Bibica accompanied the Red Cross

Society of Dong Nai Province to visit and

encourage frontline workers.

Vinarice donated 5.6 tons of rice to representatives

of communes in Thap Muoi District to support local

people who were affected by the pandemic.

584 Nha Trang supported slowing the spread of COVID-19 in the local areas.

584 Nha Trang cooperated with Military

Zone 7 to support Ho Chi Minh City in the

fight against COVID-19.

PAN Farm handed gifts to the representatives of the Fatherland Front in Co Dong commune (Son Tay, Hanoi) to support the disadvantaged households affected by the COVID-19 pandemic.

The Group accompanied the volunteer group “Love Kitchen” to support the frontline doctors

at CDC, Bach Mai Hospital, K Hospital, Emergency 115, etc. in Hanoi. The Group provided

materials for the preparation of 1,000 “love meals”.

VFC-PestMan offered disinfectant

spraying to support partners nationwide.

VFC supported 10,000 poor farming households

affected by COVID-19 in the Eastern provinces

and the Mekong Delta region.


4948

Marine aquaculture is a well-known concept in the world, but still strange in Vietnam. This is an inev-itable development trend as marine resources are declining due to overexploitation. Marine aquacul-ture not only brings high economic value but also helps stabilize the supply for seafood exports. Gradually, it has become a focal point in the sus-tainable development strategy of the fisheries in-dustry. With its diverse ecosystem, The PAN Group conducts research on the potential of promoting aquatic resources in order to develop the industry and preserve biodiversity, as part of the Group’s sustainable development mission of “Advancing Vietnamese Agri-Food Industry”.

MARINE AQUACULTURE TO NOURISH THE WORLD

An overview of sustainability in fisheries in the world

According to FAO’s “The state of world fisheries and aquaculture 2020”, to ensure food supply for the world in the future, fisheries and aquaculture are one of the most important sectors to provide food, nutrition, and employment to people.

Although fishing activities have been stagnant since the 1990s, aquaculture has been growing significantly as the world’s demand continues to grow. However, overexploitation persists and there are challenges to ensure the sustainability of fish-eries in some areas.

It is estimated that by 2020, global aquaculture products (inland and marine aquaculture) would reach 84.4 million tons, contributing 48% to the total world production of aquatic products. This is significantly higher than the rate of 14.6% in the period of 1986 to 1995. Marine aquaculture has now accounted for about 17% with an output of more than 30 million tons (in 2018).

Currently, Asia is the region with the largest scale of marine aquaculture in the world, with an 81.6% share of global marine aquaculture production, equivalent to 25.1 million tons of seafood. China is the world’s largest mariculture country, with marine aquaculture development considered a national policy in order to realize economic and political goals. Marine aquaculture is also a key development focus of some other countries such as Norway, Chile, and the US.

World production of aquatic products is forecasted to grow de-spite the stagnation of fishing activities

According to FAO, marine aquaculture would contribute to 52% of the global seafood production by 2030F (Outer circle: 2030F, Inner circle: 2020)

+9+545+79

%

%

%

Growth rate of fishing activities from 1990 to 2020

Growth rate of marine aquaculture from 1990 to 2020

Growth rate of seafood consumption from 1990 to 2020

Unit: Million tons

Source: FAO-OECD

Source: FAO-OECD

Source: FAO-OECD

Source: OECD-FAO. Agricultural Outlook, 2021 - 2030

Asian countries with tropical marine areas are capable of cultivating a variety of marine species. In which, mollusk is the product group with the largest production scale with 63% proportion; Marine fish and crustaceans contribute about 35% of the production scale. In the waters of America and Europe, it is suitable for farming marine fish and crustaceans - the species with the highest value in aquatic products. Aside from marine animals, seaweed are also products that are grown with large yields.

PANinsight SUSTAINABLE DEVELOPMENTQ3 | 2021

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tively. As of 2019, the marine aquacul-ture area was over 256,000 ha; produc-tion reached 598,800 tons, equivalent to half of the exploitable potential.

Marine aquaculture has been being de-veloped in many areas such as Quang Ninh, Hai Phong, Khanh Hoa, Phu Yen, Kien Giang, Ca Mau, etc. by both businesses and local fishers. A vari-ety of species have been farmed such as mollusks (clams, oysters, oysters, green mussels, abalone, pearl oysters, snails), marine fish (groundfish, cobia, snapper, sea bass, sea bream, pompa-no), crustaceans (lobster, crab), sea-weed (fish seaweed, grape seaweed, cartilaginous seaweed, microalgae) and other aquatic organisms.

However, marine aquaculture in our country is still primitive. The whole country has about 50,000 fishing households raising seafood in coastal areas in small-scale production with outdated technology. They mostly use cages near the shore and use leftover fish as animal feed, which can cause water pollution, disease outbreaks and has low economic efficiency.

In addition, mollusks are the main cat-egory in the structure of marine aqua-culture production in Vietnam, with about 90% of the population. The spe-cies with higher added value such as marine fish, crustaceans, and seaweed have not been exploited yet. In general, the contribution of marine aquaculture production to the total seafood produc-tion of the country is still at only 4%.In fact, most areas and local busi-nesses have realized the importance of high-tech marine aquaculture with a large investment in facilities. Some companies have invested in cultivat-ing high-value aquatic species such as marine fish, crustaceans, seaweeds, pearl oysters, etc. in offshore areas with suitable technology for each spe-

Awakening the potential of Vietnam’s marine aquaculture

With a high biodiversity exclusive eco-nomic zone (EEZ) of over 1 million square kilometers, three times the land area, Vietnam has great potential to develop marine aquaculture.

“With the current level of technology, countries on average can raise marine aquaculture over 0.1% of the EEZ; and each square kilometer of the exclusive economic zone can support 9,900 to 12,000 tons of marine species (accord-ing to FAO). Thus, Vietnam only needs 0.1% of the EEZ area, or 1,000 km2, in principle, to produce 9.9 - 12.0 million

tons of fish, nearly double the current total production (including farming and exploitation). That does not even include other types of seafood such as mollusks and seaweed. In the future, with more advanced technologies, the productivity of marine aquaculture can be much higher,” said Assoc Prof, Dr. Nguyen Huu Dung, Chairman of the Vietnam Seaculture Association (VSA).

On the other hand, according to the Directorate of Fisheries, we have an area of about 500,000 ha (5,000 km2) with potential for marine aquaculture. In which, the intertidal area is 153,300 ha; the bay, strait, and island area is 79,790 ha; and the offshore waters are nearly 167,000 ha, the rest are oth-

Enterprises are the “subjects” of marine aquaculture development

Sharing the long-term vision, Assoc Prof,

Dr. Nguyen Huu Dung said that the estab-

lishment of the marine aquaculture in-

dustry in Vietnam is only at the beginning

stage and there are many challenges.

In particular, the biggest challenges re-

garding production are the small num-

ber of marine aquaculture companies

with outdated technology, the lack of

capital resources, and access to cred-

it to invest in advanced technology for

offshore farming. There is also the lack

of well-trained labor resources and the

unformed relationship in the value chain

between the farm and the food supply,

breeding, processing, and distribution

system. Then there are “bottlenecks” in

the Government policies, the biggest of R&D Department

The PAN Group

cies. These companies are Australis Seafood Company Limited (FDI enter-prise of the US in Khanh Hoa), Tran Phu Company Limited (Phu Quoc, Kien Gi-ang), Maritec Company (Long Son, Ba Ria - Vung Tau).

Aside from marine fish, there are many new projects on raising bivalve mol-lusks and seaweed such as the Project on the development of a value chain for clam farming, processing, and ex-porting in Nam Dinh (Lenger Fisheries Co., Ltd. Vietnam), Pacific Oyster Farm in Van Don (Bavabi Company, Quang Ninh), Project of seaweed farming on litchi and nori sheet processing factory (Tri Tin Co., Ltd., Khanh Hoa).

Talking with the research team, Assoc Prof, Dr. Nguyen Huu Dung said, “Ap-plying advanced technology to marine aquaculture must be the number one priority for sustainable development. The value of farmed marine seafood can be many times greater than that of freshwater seafood, not to mention the demand and acceptance of the market is much broader.”

“Marine aquaculture development can also bring great and effective potential to develop the marine economy if it is combined with other marine econom-ic sectors such as tourism, oil, wind power - tidal power, shipbuilding, mar-

itime, marine mining, etc.”, he added.

which is the lack of a national marine

aquaculture development plan and the

lack of incentive and priority policies to

attract investment.

To take advantage of the full potential

of marine aquaculture in Vietnam, en-

terprises are the “subjects” of marine

aquaculture development with the

three most important factors: capital,

technology, and market.

Enterprises need to pay special atten-

tion to the (1) varieties, (2) facilities – to

ensure stable operation in harsh weath-

er conditions, (3) animal feed, (4) har-

vest. In particular, technology and hu-

man resources will be the prerequisites

to be able to develop marine aquacul-

ture with the “dual” goals of economic

values and environmental protection.

Marine aquaculture is a form of breeding, rearing, and harvesting aquatic plants and animals (fish, mollusks, crustaceans, seaweed, etc.) in a saltwater environment. It can take place in the ocean (in cages on the seabed, above the sea, below the sea) or on land in tanks and ponds.

Mrs. Nguyen Thi Tra My - CEO of The PAN Group learned about the marine aquaculture model in June 2021.

Vietnam’s marine aquaculture has not fully reached its potential

Area: Thousand ha

The output of marine aquaculture in Vietnam is still low due to undeveloped marine farming technology

Marine farming - Brackish water 15%

Marine farming - Freshwater 38%

Marine farming - Saline water

4%

Fishing 43%

Source: Vietnam Directorate of Fisheries

er forms of farming. Vietnam is expected to become a country with an advanced and sustainable marine aquaculture industry, with modern technol-ogy and scientific man-agement methods. On October 4, 2021, the Prime Minister issued a Decision approving the project to develop marine aquaculture to 2030, with a vision to 2045. In which, the goal by 2030 is to reach more than 1.45 million tons of marine aqua-culture production, ex-port turnover reaching 1.8 to 2 billion USD.

Since 2010, marine aquaculture in Viet-nam has made signif-icant progress in both farming area and out-put, with a compound growth rate of 23% and 16% per year, respec-


5554

PPI COMPACT PROGRAM IN DI LINH:

On April 1, The PAN Group, IDH - The Sustainable Trade Ini-tiative (The Netherlands), and the Di Linh District People’s Committee signed a Memorandum of Understanding (MOU) on the partnership and scaling up of the Production – Protection - Inclusion compact in Di Linh District, Lam Dong Province (PPI Compact Di Linh). The program is a part of the project “Life from Forestry” of The PAN Group to bring long-term benefits to the community including livelihood creation and environ-mental reconstruction, thereby affirming responsibility and commitment to production sustainable business. This article from the Sustainable Development Department will give an overview of this meaningful program from the perspectives of the farmers, the enterprise, and the local authorities.

Editor’s note

ACCOMPANYING FARMERS TO REALIZE DUAL GOALS


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The project also aims at reducing CO2 by increasing the number of trees, con-serving and restoring more forest ar-eas, and controlling the use of chemical fertilizers and pesticides. The adoption of CO2 credits is still being promoted globally and will become mandatory in the near future to combat increasingly severe climate change. From 2021 to 2025, the project targets to reduce 1.5 million tons of C02 emissions as calcu-lated by IDH. This is a meaningful con-tribution not only of the project itself but also of Vietnam as a signatory to the United Nations Framework Convention on Climate Change (UNFCCC).

Farmers – an important link

The participation of the PAN Group in this project in particular and other proj-ects with farmers opens up opportuni-ties for effective and reliable economic partnerships in an area with plenty of room for development. Most farmers nowadays do not receive profits com-mensurate with their efforts. Aside from that, they also face constant risks.

Increasing intercropping in coffee farms with fruit trees of high economic value.

Promoting gender balance in the local communities.

Application of the Source up system — a mechanism that allows companies to source materials from controlled plac-es (VSA). Through this mechanism, cof-fee products and other fruits from VSA regions will be introduced, with priority being purchased from large buyers.

The program is a part of the “Life from Forest-ry” project of The PAN Group to bring long-term benefits to the community including livelihood creation and environmental recon-struction, and open a new direction in a combined public-private model to implement CSR programs on a large scale.

Forest degradation: The alarming numbers

Forests and trees are some of nature’s best defenders against climate change. On average, each hectare of forest re-leases about 16 to 30 tons of oxygen into the air each year. The amount of CO2 absorbed by forests is about 2.4 billion tons per year, equivalent to one-third of CO2 emissions from the burning of fossil fuels globally, according to the Interna-tional Union for Conservation of Nature. Aside from improving the quality of air, forests are also shields to prevent nat-ural disasters, provide rich resources, livelihoods for people, and a home for many species of flora and fauna.

Unfortunately, deforestation and forest degradation are on the rise all over the world and in Vietnam. More than half of all tropical forests worldwide have been destroyed since 1960. More than 1 hectare of rainforest continues to be destroyed or severely degraded every second. In Vietnam, from 2011 to now, the average annual forest degradation is about 2,500 hectares. The quality of natural forests is low, with only 15% of the rich forest area and 35% of the me-dium forest area. About 50% of the re-maining natural forest area is poor and exhausted (According to data from the General Department of Forestry).

The beginning of the partnership

In April 2021, The PAN Group, the Sus-tainable trade initiative IDH (Nether-lands), and Di Linh District People’s Committee have cooperated and ex-panded the scale of the Production – Protection - Inclusion compact in Di Linh district, Lam Dong province (PPI Com-pact Di Linh). The goal is to reduce de-forestation and forest degradation, pro-mote forest landscape restoration, and develop large-scale coffee material ar-eas based on sustainable green growth goals. The program is a part of the “Life from Forestry” project of The PAN Group to bring long-term benefits to the com-munity including livelihood creation and environmental reconstruction, and open a new direction in a combined public-pri-vate model to implement CSR programs on a large scale.

A series of programs have taken place including:

Program to support the conservation of soil and water through the promotion of agroforestry systems in crop production and forest protection and restoration.

Managing the use of glyphosate by imple-menting service delivery models (SDMs).

The project also aims at reducing CO2 by increasing

the number of trees, conserving and restoring

more forest areas.

THROUGH A PARTNERSHIP WITH CUC PHUONG NATIONAL PARK, THE PAN GROUP JOINED THE PROGRAM “ADDING GREEN TO THE OLD FOREST”

On the morning of March 12, 2021, The PAN Group in cooperation with Cuc Phuong National Park organized tree planting activities within the frame-work of the program “Adding green to the old forest”. This program was part of the community project called “Life from Forestry” of The PAN Group to reconstruct the environment and natural landscape.

In the program, the two parties planted two types of trees which were the michelia mediocris dandy and the apricot trees covering an area of 2.5km, contributing to the conservation and preservation of valuable plant genet-ic resources of native tree species. “We hope that these activities of The PAN Group will contribute to the increase of green spaces and spread the movement of environmental protection as well as responding to the initiative to plant 1 billion trees by 2025 launched by the Prime Minister “, said Ms. Nguyen Thi Tra My, CEO of the PAN Group, at the event

With the goal of creating sustainable livelihoods in parallel with environmen-tal protection, The PAN Group has started the project “Life from Forestry” in 2020. Until now, there have been 67.000 planted trees across an area of 24ha in different locations such as Nghia Son commune, Van Chan District belonging to Yen Bai Province; Xuan Son National Park in Phu Tho Province, Nam Can Commune, and Nam So Commune in Lai Chau Province. Sustainable Development Department

The PAN Group

The improvement in this field will bring many opportunities and potentials for both businesses and farmers.In this story, not only were the farm-ers given new livelihoods, but the lead-ers in Di Linh and Lac Duong districts were also very enthusiastic about the development of local agriculture. They always welcome and wholeheartedly support investors with strong commit-ments to production capacity, reliability, and cooperation.

Thanks to suitable soil conditions and farming techniques of local farmers, the agricultural development in these areas promise to bring high-yield and high-quality products. It will become an important input source for enterprises processing and exporting agricultural products like The PAN Group. The public-private partnership between enterprises - farmers - authorities (PPP) is the beginning of a series of future collaborations towards comprehensive benefits on a large scale. Only when we combine the values corresponding to the roles of each party, can we optimize costs & resources and benefit the com-mon interests of all participants.

With a consistent sustainable develop-ment strategy in which cooperation is the foundation, The PAN Group always wishes to find partners with the same vision of using its strength to make the most effective contribution to the com-pany, the workers, and the society. The agri-food sector has always been the core foundation of Vietnam and it is proving to have more opportunities for further development. The PAN Group has big plans in the future to take advan-tage of these opportunities. The Group commits to responsible production for the benefit of all parties by keeping up with the sustainable trends in the world and bringing value to Vietnam.

The signing ceremo-ny of a Memorandum of Understanding on the Production – Protection - Inclu-sion compact in Di Linh District, Lam Dong Province (PPI Compact Di Linh)


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LIFE FROM FORESTRY BY THE NUMBERS

In 2020, The PAN Group launched the “Life from forestry” project with the goal of creating livelihoods for local people and protecting the environment. The project is a response to the initiative of planting 1 billion trees by 2025 by the Prime Minister. Up to now, the Group has planted 173,000 trees on an area of 1,224 ha in many localities such as Nghia Son, Van Chan - Yen Bai communes; Xuan Son - Phu Tho National Park; Nam Can Commune, Nam So Commune - Lai Chau, Cuc Phuong National Park - Ninh Bin. PAN also collaborated with the Sustainable Trade Initiative (IDH) to implement a production project that combines conservation and social security with the main goal of promoting forest landscape restoration in Di Linh district, Lam Dong province.

Sustainable development is always one of the top priorities of PAN. In many raw material areas, the Group works closely with local residents to intercrop with forest tree species. These include the Cashew material area in Binh Phuoc, coffee material area in Da Lat, Son La, Khe Sanh, Pleiku and A Luoi, aquaculture area in Soc

Trang, etc. Forest development and protection is one of the key focus areas of the Group.

‘

‘

Currently planted

Expectations for 2021 - 2025:

Contribute to reduce 1.5 million tons of CO2 emissions (according to IDH calculation)

Goals

Plant 30 trees per employee

Supported

Farmers in Tan Nghia, Gung Re and Dinh Lac through the project in Di Linh district, Lam Dong province.

Single women living in poverty to participate in the community program “Towards gender equality” in Nghia Son commune, Van Chan district, Yen Bai province.

Farmers with difficult circumstances through the community program “Tree Planting and Livelihood Support” in Nam Can commune, Tan Uyen district, Lai Chau province.

Accompanied

02 National Parks: Xuan Son National Park, Phu Tho and Cuc Phuong National Park, Ninh Binh in restoring forests and creating livelihoods.

173,000 trees on an

area of 1,224 hectares

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SUSTAINABLE DEVELOPMENTPANinsight Q3 | 2021

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Though it originated from the foreign market, ESG has now become a common practice in Vietnam, especially in large enterprises and companies with frequent international trade. The PAN Group fo-cuses on adhering to international standards in environmental and social issues while contributing to the sustainable development goals of the United Nations. The Group realizes this goal by mea-

suring the impacts of its business activities.

Sustainable investment is the new global trend

SG focuses on three main fac-tors including Environment (E), Society (S), Corporate Gover-

nance (G). The Environmental criterion considers aspects of energy, waste, resource conservation, etc. The Social criterion examines the company in its business relationships and the needs and expectations of its stakeholders such as relations with the communi-ty, relations with partners, suppliers, customers, etc. as well as working

ESG COMPLIANCETHE BEST CORPORATE

GOVERNANCE PRACTICE TO CREATE COMPETITIVE ADVANTAGES

E

Mr. Bournet Gregory, Head of Corporate Finance at PwC Vietnam and Malaysia, said that banks, financial institutions, or private equity funds are transforming their investment strategies now and in the future through the prism of ESG. He also noted that commitments aimed at ESG factors are changing the way busi-nesses are valued and their attractive-ness in the eyes of investors.

“Sustainable investment is the new glob-al trend and the ability to raise capital of a business will depend on how well they meet ESG criteria. As the ESG invest-ment trend is creating opportunities to add value to society, Mr. Gregory said that businesses pursuing these criteria “are not only managing public image risks but also creating an opportunity to optimize the business model and devel-op the brand,” he added.

Mr. Vicente Nguyen, Fund Manager at AFC Vietnam Fund, also said that the inflow of capital into ESG investment funds is an inevitable trend. The world powers, including the US, Japan, Korea, EU, and Australia all focus on promot-ing ESG criteria to improve the environ-

ment quality, reduce emissions, and balance society.

According to Mr. Vicente Nguyen, aside from the opportunity to receive invest-ment capital from sustainable invest-ment funds, businesses need to take into account that they will also be given priority when entering rigid markets in the future.

“Most markets currently may not strict-ly apply these criteria. But in the future, it will be one of the mandatory condi-tions to enter the market. Therefore, businesses should soon adapt to meet this demand,” he said.

For example, corporations like Apple, Google, Facebook, or even Samsung in Vietnam are planning to convert the use of fossil energy to renewable energy to meet the requirements of sustainable development. They also pay great attention to the working conditions of workers, work safety, and issues related to business ethics. This trend is becoming more and more apparent and gradually moving from awareness to actions.

conditions and the health and safety of employees. Governance criterion evaluates accounting methods, trans-parency and shareholders’ interests in important matters, management of conflicts of interest, etc. ESG is not only about the reputation but also as-sociated with the stable success of the company, the revenue, and the long-term profits of investors.

The COVID-19 pandemic has acceler-ated this trend, causing investment strategies to shift to ESG instead of traditional financial metrics. According to Morningstar, in 2020, ESG funds at-tracted record cash flows, double that of a year earlier. Net money from inves-tors pouring into sustainability funds totaled $51 billion, rising to a record high for the fifth year in a row.

ESG is not only about the reputa-tion but also associated with the stable success of the company, the revenue, and the long-term

profits of investors.

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The impact from business activities

n July 2017, The Vietnam Sustain-ability Index (VNSI) was officially in-troduced by the Ho Chi Minh Stock

Exchange (HoSE) as the new measure-ment for the stock market to select the best ESG companies. The PAN Group is honored to be selected in the top 20 companies with the best ESG practices for many consecutive years.

In fact, the Group has shown its respon-sibility firstly for the impacts from the production activities. It is reflected in many activities such as:

The application of strict environmental standards such as ASC, BAP, Global GAP for aquaculture farming areas.

The application of advanced farming methods such as SRI to reduce the use of fertilizers and pesticides, increase productivity, and efficiently and sustain-ably exploit land resources.

Improving food processing technolo-gies and techniques to reduce waste and emissions to the environment, such as converting to non-toxic cashew nut steaming technology, or applying MFCA in confectionery production.

The application of social responsibili-ty standards such as BSCI, SEDEX.

During the pandem-ic, all employees are still able to maintain their jobs and source of income. To the so-ciety, the Group builds partnerships with thousands of house-holds in the supply chain, provides tech-nical support, capital, purchases agricultural products to help create livelihoods, and per-forms CSR programs to support the com-munity. As a leading agri-food group, the PAN Group under-stands that the Group is not only responsi-

Photo 1: In January 2021, the Sustain-able Development Department of the PAN Group carried out an annual envi-ronmental and social assessment at VFC (pesticides and disinfectants), Aquatex Ben Tre (aquatic processing), and Lafooco

(cashews processing)

Photo 2: VFC was selected as the proj-ect coordinator on alternatives to Meth-yl Bromide in disinfection to protect the ozone layer by the United Nations Indus-trial Development Organization (UNIDO)

1

2

I

Not only striving to maintain its lead-ing position, but the Group also wants

to affirm the position of Vietnam in the global market as an attractive

investment destination that is ready to join the global supply chain.

ble for shareholders and investors, but also responsible for the lives of nearly 10,000 employees and their families.

One of the Group’s aims is to meet in-ternational standards regarding envi-ronmental and social issues, in order to contribute to the sustainable devel-opment goals of the United Nations. Not only striving to maintain its lead-ing position, but the Group also wants to affirm the position of Vietnam in the global market as an attractive invest-ment destination that is ready to join the global supply chain.

Anothe prime example is VFC. Thanks to good control of safety issues for the environment and people, VFC has be-come the first Vietnamese disinfection company to pass the strict require-ments of the Australia Quarantine Agency (AQIS). The company was grant-ed the certificate to disinfect goods des-tined for Australia, a leading agricultur-al country with very high standards and requirements for product quality.

With the ambition to break out in the region, the PAN Group will continu-ously improve to make ESG practices more meaningful and to bring positive impacts to stakeholders and the busi-ness itself. We also hope that more and more individuals will be aware of ESG and this practice will become more common in the business community. Through this, we can put together the final puzzles to make Vietnam become an attractive destination for leading in-vestors in the world.

One of the Group’s aims is to meet international standards regarding environmental and social issues, in order to contribute to the sustainable development goals of the United Nations.

Do Quoc ThinhThe PAN Group

To realize these goals, PAN pursues compliance with various international standards such as IFC Performance Standard, ADB Safeguard Policy State-ment. The Group also issues its own set of environmental and social action principles applicable for all member companies. On the other hand, set up a Subcommittee on Sustainable Develop-ment under the Board of Directors, im-plement guidelines, and annual assess-ment at all production facilities.

However, to meet ESG requirements, there are also significant difficulties re-lating to production and business activ-ities. For example, to meet the product

safety criteria, environmentally friendly farming, and production methods, the company has to make drastic changes and initiate new ideas to operate safely with less negative impact.

In the past, Lafooco could not control the traceability of cashew nut materi-al sources. But now, the company can control almost 100% of the raw mate-rials by appointing technical staff to ac-company the farmers in the production, harvesting, and preservation process. With consistent efforts, Lafooco has been seeing strong growth in the last two years.


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Network congestion due to sys-tem overload on HOSE became a hot topic among investors in the first half of the year. Many short-term and long-term solutions have been proposed

to tackle the congestion, along with the plan to transfer shares traded on HOSE to HNX. To be able to contribute to solving the sit-uation, The PAN Group and all its member companies sought approvals from the Board of Directors to temporarily transfer all the transactions to protect the investors.

Ms. Nguyen Thi Tra My, CEO of The PAN Group, said that “Net-work congestion sometimes occurs on the HoSE even in the first half of the afternoon trading session. This error happens more frequently when the market liquidity soars. This prob-lem must be resolved”. After the Chairman of the SSC issued an Official Letter instructing on issues related to transfer-ring shares traded on HSX to HNX, some businesses such as VNDS, BSC took it into consideration. She then decided to have discussions with the General Directors of the 7 subsidi-ary companies and some members of the Board of Directors.

In a position of a listed company, switching from HOSE which is currently home to large companies to HNX housing smaller companies is not a common practice. “Due to the clogged-up trading happening for almost 3 months, we must consider the immediate solution (changing the stock exchange), hoping to contribute to relieving pres-sure for the whole system in the short term,” Ms. Tra My said. She also wished that the individual investors would under-stand and support this temporary solution.

In addition to shares of The PAN Group, seven other member companies listed on HOSE including Fimex VN (FMC), Vina-seed (NSC), Southern Seed (SSC), Bibica (BBC), Aquatex Ben Tre (ABT), Lafooco (LAF) and VFC (VFG) also participated in this transferring.

Fortunately, as the CEO has shared, The PAN Group chooses sustainable development to be its core value. Accordingly, the PAN Group as well as its subsidiary companies easily reached an agreement on the long-term vision. It is also the greatest value that the PAN Group wants to contribute to society, to its shareholders as well as to future investors. Sustainable de-velopment is the key influence to the PAN Group’s decisions and those decisions will only be taken if they bring benefits to the company, to employees, and the society at the same time.

The long-term vision helped The PAN Group go through 2020 with positive results despite the effect of the Covid-19 pandemic. The revenue and profit after tax of all companies in its ecosystem were 8,550 billion dongs and 330 billion dongs respectively.

Ms. Tra My told us that, “Together with its strategic share-holders including IFC, the Sojiz Group (Japan), TAEL (Singa-pore), we increase value every year, and I hope that our retail investors will also share the long-term value which we all need to cultivate and build. The stock price is a relative and

THE TEMPORARY

TRANSFER TO HNX

A TIMELY DECISION

TO PROTECT INVESTORS

68

proportional value of the company’s worth but only in the short term and is affected by the stock market fluctuations’’.

At the time, Mr. Tran Van Dung, Chairman of the State Securities Com-mission of Vietnam (SSC), hoped that more and more listed companies would sympathize over the clogged-up trading issues and temporarily transfer their share transactions from HoSE to HNX. This is only an im-mediate solution that the Vietnamese Stock Market needs to alleviate high trading order on the system of HOSE while waiting for more com-prehensive solutions in the long term.“At that time, it is necessary for businesses to join hands to support the market, especially with urgent solutions that require voluntariness such as transferring transactions from HOSE to HNX.

When we decided to propose this solution, we wanted to accompany the SSC and HOSE to reduce the overload of the system. However, the main reason was to protect investors. If staying on HOSE, our investors would be the most affected as the transactions could not go through smoothly,” Ms. My said.

The reality is, when many businesses like PAN took appropriate actions, the congestion was unblocked. It helped relieve the pressure of the au-thorities so that they could focus on implementing mid-term and long-term solutions to improve Vietnam’s stock market.

On July 5, the new version of the Hanoi Stock Exchange premiered with new software provided by FPT. The system could execute 3 to 5 million orders per day (while HOSE could only process 900,000 orders per day). The new system also removed the order allocation mechanism, so secu-rities companies would use order volume according to capacity instead. Most notably, the new system allows more control in the troubleshooting and errors monitoring process.

At the same time, HoSE is also speeding up to introduce a new system from the Korean Stock Exchange (KRX) which is expected to be put into operation by the end of this year.

In September, the Group & subsidiaries received an Official Correspon-dence from HNX to transfer transactions back to HOSE, marking the end of a “temporary stay” after achieving the defined goals and the confidence to “Advance Together”.

The Editor Board

The PAN Group

The long-term vision helped The PAN Group go through

2020 with positive results de-spite the effect of the Covid-19

pandemic.

NEWS

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alking about this partner-ship, Mr. Ho Quoc Luc, rep-resentative of Mr. Ho Quang Cua’s family said: “Thanks

to the cooperation and support of The PAN Group, it’s a lot less difficult for us to register trademarks in multiple markets at the same time. With their legal team and experts, PAN helped speed up the registration process and

On April 22, the ST25 rice brand was registered as a “trademark” by a company named T&L Global Foods Supply in Australia. Similarly, four other companies in California (US) also registered to trade-mark ST25. Vietnam, at that time, had to take action to protect its rice brand. As the “late runner”, the only way to win is to cooperate. People always say, “Go alone if you want to go fast, go together if you want to go far”. Mr. Ho Quang Cua, the representative of the author group of ST25 with Ho Quang Tri - his family enterprise authorized The PAN Group to carry out the procedures to register ownership rights for the ST24 and ST25 rice brands in key export markets.

shorten waiting times. This cooperation brought great benefits to Ho Quang Tri private enterprise and the authors of ST25 rice”.

In this cooperation, PAN received au-thorization to register for the trade-mark of ST24, ST25 rice brands in key international markets such as the US, Australia, UK, Europe, China, Hong

Kong, etc. At the same time, the com-pany took appropriate preventive mea-surements to protect the patent rights in these markets.

“With this cooperation, our goal is to protect and develop our Vietnamese agricultural products brands. We are delighted to receive unconditional sup-port from the Vietnamese agencies in

T

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THE BATTLE TO RECLAIM

ST25 RICE BRAND PATENT

The Vietnam Trade Office in Austra-lia also sent an official dispatch to the Australian Intellectual Property Office with clear evidence and photos showing that ST24 and ST25 rice varieties were developed by Mr. Ho Quang Cua and a group of Vietnamese scientists.

Entrusted by Mr. Ho Quang Cua and his private enterprise, besides protect-ing the brands in the US and Australia, The PAN Group also collaborated with global experts to prepare to trademark ST24 and ST25 in other key export mar-kets of Vietnam.

On the other hand, Mr. Phung Duc Tien, Vice Minister of Agricultural and Rural Development, told the Press that the Ministry of Agricultural and Rural De-velopment would consider buying out intellectual property rights of the ST24 and ST25 rice varieties as per Mr. Ho Quang Cua’s proposal. The ownership of rice varieties is completely different and does not conflict with the authori-zation of The PAN Group.

With that said, aside from authorizing The PAN Group to register trademarks of ST24, ST25 in key international mar-kets, Mr. Ho Quang Cua, the “father” of ST24, ST25 rice varieties also handed over the intellectual property rights of these rice varieties to the Government. Talking to NDH.vn, he said that he made this decision to enhance, protect and preserve a Vietnamese brand.

“This can be a strong brand of the Viet-namese and can create an opportunity for consumers, especially domestic consumers, to enjoy a high-quality

product, a good and proud achievement made by our Vietnamese hands and minds,” he said.

To establish the rights of a Vietnamese enterprise, together with a reputable foreign law firm, the PAN Group reg-istered for trademarks of rice brands named ST24, ST25, and characteristic identification elements from these va-rieties in major international rice con-suming markets. In addition, PAN also helped Ho Quang Tri enterprise, Mr. Cua’s family business, to build its new brand named GAO ONG CUA, which was made from ST25 rice variety, in export markets. At the same time, the com-pany filed oppositions against regis-trations of other foreign companies. If these actions are recognized, protect-ed, and enforced by the authorities, the reputation of Vietnam’s high-quality rice industry will be enhanced greatly in the global market.

The partnerships between a private enterprise and a large enterprise, be-tween enterprises and the Government, might become the winning formula to protect Vietnamese brands in the “big sea”. This cooperation will open new opportunities for other Vietnamese rice varieties in the future and raise aware-ness of local businesses about the role of branding in long-term success.

Ngoc LinhThe PAN Group

foreign countries in this battle against infringements of foreign companies,” said Ms. Nguyen Thi Tra My - CEO of The PAN Group

Mr. Bui Huy Son, Head of the Vietnam Trade Office in the US, helped inform the local authorities and confirmed that the original author of the ST25 rice va-riety were the Vietnamese scientists. This rice variety won the First Prize in the World’s Best Rice Contest 2019 in the Philippines and the Second Prize in another contest in the US. The US au-thorities later sent further instructions on the process to oppose the registra-tion of trademarks of other companies.

With this cooperation, our goal is to protect and develop our Vietnamese agricultural

products brands.

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SHIN CA PHE HAS LANDED ON THE NORDIC

SHIN CA PHE HAS LANDED ON THE NORDIC

The struggling first steps

In Northern Europe, coffee is a daily ne-cessity. Northern Europe is the biggest coffee market in the world, with an av-erage consumption of six to nine kg per person annually. In Northern Europe, everybody drinks coffee, regardless of age, gender, religion, or time and place. People in Northern Europe start their days with a cup of coffee. Arriving at work, a cup of dripper coffee already awaits. Lunch? Perfect time for coffee. For dinners, having a “fika” - coffee with a sweet cinnamon roll is a ritual. During the whole day, Northern Europeans al-ways find time to have a cup of coffee.

However, Northern Europe is a difficult market to penetrate. They have high re-quirements for coffee quality, from the cultivation to the packaging process. To export coffee to the Nordic region, the company must comply with the require-ments and regulations of the EU. The requirements are mainly about food safety, in which traceability and hygiene are the most important criteria.

Grasping the difficulties and poten-tials of the Nordic region, SHIN Ca Phe desires to conquer this market. It is because genuine coffee makers like SHIN are very proud of their products, and this region is where coffee has a great influence on the social life of every citizen.

The journey to the Nordic region

The journey to bring Vietnamese cof-fee to Sweden and the Nordic countries originates from the “fate” between SHIN Ca Phe and Vietnamese expatriates who still love the taste of their homeland. These people are also the official dis-tributors of SHIN in Sweden.

It requires strenuous efforts to ap-proach and access the European mar-ket, but it’s even more challenging to penetrate the Nordic region, especial-ly for coffee products. A very fortunate thing is that SHIN has been oriented to produce high-quality and environ-mentally-friendly coffee from the very beginning. We work with people who have an endless passion for coffee and truly benefit each link of the production chain. At the same time, we strictly fol-low standards in each stage of produc-tion to achieve certifications such as ISO: 22000-2018, HACCP & HALAL.

Thanks to this, SHIN gradually over-comes the barriers of geographical distance and the strict regulations on the quality and hygiene of the Europe-an Union.

Mr. Ho Minh Phu, Export Business De-velopment Manager, and his associ-ates had worked tirelessly for over six months with countless meetings with partners. The team coordinated with partners to adjust and adapt the prod-uct to the taste of Nordic consumers. The team also provided partners with detailed information about SHIN Ca Phe, such as brewing instructions and video demonstrations. Aside from this,

they also prepared legal documents, as well as complicated logistic procedures for the shipment to arrive in Stockholm as soon as possible.

The project almost came to a dead-end multiple times due to strict legal re-quirements and excessive costs. How-ever, we tried our best and overcame the barriers with the confidence and enthusiasm in the Vietnamese coffee beans that SHIN had cherished. Now, if the consumers want to taste SHIN in Northern Europe, they can visit the website: https://vietsmak.com/ (Vi-etsmak means “the beautiful Vietnam”) to order. The website has the full range of SHIN products - from the delicate Vietnamese coffee beans to the more mainstream ones with richer taste or convenient paper filters.

From this small first step, SHIN Ca Phe has contributed to bringing Viet-nam’s regional specialty coffee to the world. It will gradually change the position of Vietnamese coffee in the global market. Despite being the second-largest coffee exporter in the world, Vietnam is still often regarded as a raw materials production country with low-quality products.

SHIN has been strongly pursuing the goals of enhancing Vietnamese coffee and bringing a better life to local farm-ers by elevating the value of their efforts in the laborious coffee fields.

Mai Huong - Thanh Thuy SHIN Ca Phe

With the goal of “Enhancing Vietnamese Coffee”, SHIN Ca Phe together with Vietnamese ex-pats in Northern Europe have gradually “conquered” this market with high-quality coffee grown from the “From farm to cup” model.

SHIN Ca Phe has contributed to bringing Vietnam’s regional specialty coffee to the world.

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NEWS

584 NHA TRANGCOMMENCES CONSTRUC-TION OF BOTTLING FACTO-RY AT DIEN PHU INDUSTRI-AL COMPLEX (DIEN KHANH, KHANH HOA)

On March 23, 2021, Huro Probiotics Joint Stock Company, a member of The PAN Group, received the certificate of the Good Manufacturing Practice of The World Health Organiza-tion (GMP-WHO)

Ms. Nguyen Thi Tra My, Vice President and CEO of The PAN Group, said that “This is an important step, creating the pre-condition for Huro Probiotics to continue researching and creating final probiotics products derived from beneficial spore-forming bacteria of high quality, at low cost, having competitive advantages to serve the domestic and interna-tional markets, in line with the mission of The PAN Group “.

On April 7, 584 Nha Trang Seafood Joint Stock Company, a member of The PAN Group, broke ground on a new bot-tling factory at Dien Phu Industrial Complex (Dien Khanh, Khanh Hoa). This is the only bottling factory of a tradition-al fish sauce production enterprise that has been licensed by Khanh Hoa Provincial People’s Committee. The decision was made based on the condition that the factory met the environmental and landscape conditions in Dien Phu Indus-trial Complex.

The factory is expected to reach a packaging capacity of 20 million bottles per year. At the same time, the factory is aim-ing to achieve the FSSC22000 food safety management sys-tem certification which would open up opportunities for ex-ports to international markets.

Mr. Huynh Ngoc Diep, Chairman, and Director of 584 Nha Trang, hoped that the construction of a new factory along with the upgrade in packaging and product design would help preserve and promote the 584 Nha Trang fish sauce brand. With more than 43 years of history, the company is aiming to become one of the biggest traditional fish sauce production companies in the region and the country.

HURO PROBIOTICSGRANTED THE GMP-WHO CERTIFICATE

Huro Probiotics is currently the material provider for the re-search, development, and production of a preventive treat-ment for COVID-19 funded by the UK Government. With this certificate, the company could participate in the supply chain of spores of probiotics for other domestic pharmaceutical companies and difficult markets such as the US and EU that have demands for microbiological materials.

“DAI THOM 8” RICE VARIETY OF VINASEED WON SECOND PRIZE AT VIFOTEC AWARDS 2020

INDO-PACIFIC GEO-ECONOMIC COMPETITION CONFERENCE:

THE PAN GROUP - A PRIME EXAMPLE OF THE CIRCULAR ECONOMY CONCEPT IN VIETNAM

Vinaseed’s “Dai Thom 8” rice variety won second prize in the Vietnam Science and Technology Innovation Award (VIFOTEC) 2020 organized by the Vietnam Gen-eral Confederation of Labor, the Ministry of Science and Technology, and the Vietnam Union of Science and Technology Associations (VUSTA)

This award affirms the economic, social, and environ-mental significance of the Dai Thom 8 rice variety. It’s a recognition of the hard work of the technical experts at the Research and Development Center of Vinaseed, a member of PAN Group.

Dai Thom 8 is a salt-tolerant and high-quality fragrant rice variety. The variety could cope well with flooding, which helps save land and water resources. This is an important characteristic that would protect the product when flooding and saline intrusion have become more severe due to the impacts of climate change.

Taking place on 15 and 16 May 2021, the “Indo-Pacific Geo-Eco-nomic Competition Conference” was held in Berkeley, California, US. The PAN Group was featured in a paper titled “Reshaping the World’s Supply Chain? A Case Study of Vietnam’s PAN Group Adopting the Circular Economy Concept’’.

The paper is co-authored by Professor Tung Bui, Director of the University of Hawaii VEMBA Program and APEC Study Center, USA, Professor Quan Le, YSEALI Academy, Fulbright Universi-ty Vietnam, and Professor Jason Nguyen, Ivey Business School, Western University, Ontario, Canada. Drs. Le and Nguyen are also affiliated with the Institute for Circular Economy Development, Vietnam National University, Ho Chi Minh City.

“The PAN Group, a young, unconventional, and growing 17,000-farmers-strong agricultural group in Vietnam has been aggressively taking strategic moves toward the circular econo-my. As a financial partner with international partnership, R&D, and technology transfer powerhouse, the PAN Group collab-orates with a variety of independent farms and food industries across the country to innovate and, by doing so, enable them to join the global economy in a self-reliant and resilient manner,” said the researchers.

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THE PAN GROUP AND 4 MEMBER COMPANIESARE ON THE LIST OF THE ‘145 VIETNAMESE BEST PERFORMANCE COMPANIES IN THE DECADE 2010 – 2020’From 2010 to 2020, the list of the “Vietnam’s 50 Best-performing Companies” (TOP 50) developed by Nhip Cau Dau Tu Magazine has had 145 “decade mem-bers”. Contributing to this list, The PAN Group and its four member companies including Vietnam National Seed Group (Vinaseed), Sao Ta Foods Joint Stock Com-pany (Fimex VN), Vietnam Fumigation Joint Stock Com-pany (VFC), and Southern Seed Joint Stock Company (SSC) have become impressive pieces, contributing to the country’s economic growth, leading innovation, ap-plying science and technology, accompanying Vietnam in the economic development.

In the publication “One-decade milestone 2010 - 2020” just released, the Jury Panel identified that the thrive of “leading cranes” has helped to change the face and the position of the private economic sector, affirming the important role in efforts to actualize the country’s socio-economic goals.The ranking focuses on the business and governance performance of the leading enterprises of the Vietnam-ese economy. At the same time, this is also an accurate thermometer reflecting the pulse of Vietnam’s econ-omy, which is increasingly dynamic and diversified. In the past ten years, the selected enterprises must al-ways meet three criteria: (1) Being listed on HOSE and HNX with a market capitalization of VND 2,000 billion or more; (2) Revenue in the three years preceding the survey year is VND 200 billion or more; (3) Net profit in the three years preceding the survey year is VND 20 billion or more.

Looking back on the past journey, The PAN Group will continue to make more efforts to prolong its successes and contribute to building a prosperous and powerful Vietnam in the next decades.

VFC COMPREHEN-SIVELY IMPROVED THE ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEMRecently, Vietnam Fumigation Joint Stock Com-pany (VFC), a member of The PAN Group, held an online meeting with the International Finance Cor-poration (IFC) to improve its environmental and so-cial management system. Its goal in 2021 is to in-tegrate this system into the existing management system standards including the ISO9001 for quality requirements and ISO14001 for environment re-quirements. Thereby the company can comprehen-sively control all activities and affirm the commit-ment to responsible production and business.

As a company operating in the field of agro-chem-icals and fumigation, VFC, a member of The PAN Group, understands that safety for the environment and public health is an important factor for the com-pany. This is so it can continue to operate stably, contributing to the success of the agriculture - food industry in particular and other economic activities in general. The maintenance and improvement of the environmental and social management system are always prioritized and implemented effectively. Previously, VFC was selected to be the project coor-dinator regarding Methyl Bromide alternatives in fu-migation to protect the Ozone layer of the United Na-tions Industrial Development Organization (UNIDO).

The upgrade helps the company to comprehensively control all activities, affirm its commitment to re-sponsible production and business, in harmony with the consistent sustainable development strategy of The PAN Group. The Group will accompany VFC in implementing the recommended improvements and at the same time coordinate to monitor its efficiency in the upcoming time.

SHIN CA PHE SENDS LOVE TO CHILDREN IN THE HIGHLANDS

BIBICA SENDS 10,000 GIFTS THROUGH “MID-AUTUMN FESTIVAL FOR YOU”“Mid-Autumn Festival for You” is an annual program of Bibica to bring sweet memories to children across the country. Due to the impact of COVID-19, this year’s program is limited to 17 provinces and cities. As part of the program, the company handed gifts to children infected with COVID-19 in isolated areas.

The company made preparations for two months be-fore the Mid-Autumn Festival. Mr. Truong Phu Chien, Chairman of Bibica’s Board of Directors, said that the company did not cancel the program despite the complicated situation. The program took place in any areas that could organize and ensure the health and safety of all participants.

“Mid-Autumn Festival for You” season two took place in 17 provinces including Yen Bai, Thai Nguyen, Phu Tho, Hoa Binh, Bac Kan, Cao Bang, Lang Son, Bac Ninh, Quang Ninh, Hai Duong, Ninh Binh, Ha Nam, Nghe An, Quang Nam, Dak Lak, Ninh Thuan, HCMC. The company representatives handed over gifts to children infected with COVID-19 in isolated areas. More than 10,000 gifts including Bibica mooncakes, cakes, candies, lanterns, etc. were hand-delivered to more than 8,000 children during this year’s “Full Moon Festival”. There were also fun-filled and joyful activities such as lion dance, lantern parades with Chu Cuoi and Chi Hang.

The success of the program came from the dedication of each participant. Despite various difficulties, Bibi-ca still completed the mission of “giving love” and a meaningful moon season to the children in Vietnam. Hopefully, the program “Mid-Autumn Festival for You” next year will be a festival of unity and of joy for win-ning against COVID-19.

In recent years, thousands of Mid-Autumn Festi-val gifts from donors have been carefully gathered and transported by SHIN Ca Phe to the children of minor ethnic groups in the highlands. The goal of the program is to ensure the disadvantaged chil-dren have the right to education, attend class reg-ularly and have a safe journey to schools.

From July 1, SHIN Ca Phe had implemented the pro-gram “Warm clothes for you”, asking for donations of items such as notebooks, warm clothes, socks, scarves, and school supplies. Due to COVID-19, the team could not hand-deliver the gifts to the children in Mid-Autumn but the gifts will arrive right when the restrictions ease.

SHIN’s coffee material areas are all located in ex-tremely poverty-stricken highland communes. In there, the majority are ethnic minorities families. There are the K’Ho people in Da Chais, the Bana in Gia Lai, the Van Kieu in Khe Sanh, and the Thai in Son La. 5 years ago, SHIN and their partners ex-plored these lands and persuaded the local minority groups to grow high-quality coffee.

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VINASEEDLAUNCHES NEWSLETTER FOR FARMERS

THE PAN GROUP RENEWS D&O INSURANCE POLICIES FOR COMPANY MANAGERS

Vinaseed, a member of The PAN Group, has launched a news-

letter to timely inform and support farmers, especially during

the social distancing period as per the Government guideline.

The newsletter is updated regularly on Vinaseed’s fan page,

providing farmers with knowledge about common diseases in

rice crops and preventive measures to ensure productivity and

harvest quality.

The company has constantly tested and put into production many new rice varieties on varied soils and weather conditions to find the most suitable one for each locality, aiming to build high-quality rice production areas.

Recently, The PAN Group has officially extended the liabil-ity insurance policies for managers of all levels. The Group signed the contract for the period of 2021 - 2022 with global insurance company AIG through the broker AON.

Since 2017, the Group has started purchasing D&O insurance policies for company managers. This is a strategic decision of the Group and all member companies. D&O insurance is an “armour” protecting the company and managers from man-agement risks. Especially, the insurance could protect them from claims which may arise from the decisions and actions taken within their duties.

Most notably, despite the long-lasting unfavorable weather, Vinaseed’s upgraded VNR10 and DB6 varieties still gave a “super” yield of more than 80 quintiles per ha in the first trial production in Tay Son (Binh Dinh). The company worked closely with the locals to organize training for farmers at the beginning of the crop season. The company also appointed staff to regu-larly visit and give technical advice for each variety to achieve the highest productivity.

Aside from this, Da Huong 8 was recently selected by Hai Lang District (Quang Tri) to put into organic production as part of the strategy to build branding for “Hai Lang clean rice”. The pro-duction is expected to yield 60 to 65 quintals per hectare in the 2021 summer-autumn season.

During the complicated situation of COVID-19, D&O insurance has become more useful than ever, helping protect the business and company managers from the bold decisions taken to cope with the unprecedented situation.

Purchasing D&O insurance for company managers is a part of the Group’s sustainable development strategy. It showcases the Group’s support to member companies on the journey to realize the common dream of advancing to the regional and international market.

SAO TA, AQUATEX BEN TRE & LAFOOCO NAMED “PRESTIGIOUS EXPORT BUSINESS IN 2020”

VINASEED RICEREACHES OVER 10,000 CUSTOMERS IN AUSTRALIA

The Vietnam Ministry of Industry and Trade issued Decision No. 1974 / QD-BCT announcing the List of “Prestigious Ex-port Business” in 2020. Three member companies of The PAN Group - Fimex VN, Aquatex Ben Tre, and Lafooco, once again made it to the list.

The list was compiled and announced based on the selec-tion and proposal of government organizations and related agencies. The selection criteria include the minimum export

revenue, business prestige among foreign partners, and per-formance of customs, tax, and environmental obligations.

In the near future, the three companies will continue to affirm their positions in the global market. They will continue to in-crease export revenue and expand export markets, especially when Vietnam has recently joined several bilateral and multi-lateral free trade agreements.

Organized by the Vietnam Trade Office in Australia, a promotion program titled ‘Viet Nam, Land of World’s Best Rice’ had presented 10,000 bags of Vinaseed’s Ban Mai Cung Dinh rice to consumers in Australia. Each cus-tomer was given a 1kg sample or tester bag through the M-Import distrib-utor and the MCQ supermarket chain. The product received high praise from consumers in Western Australia for its quality.

In August, despite the complicated situation of COVID-19 in both Vietnam and Australia, the exported volume of agricultural & aquatic products from Vietnam to Australia still grew tremendously.

In the first seven months of the year, the exported volume of vegetables and agricultural products grew 45% and aquatic products grew 53% compared to the same period in 2020. In particular, the turnover of Vietnam’s rice ex-ports to Australia increased 37.03% over the same period last year.

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PANinsight CORPORATE CULTUREQ3 | 2021

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WE NEEDA COMPANION

TO GO FAROn the long and winding road, there will be obstacles, especially at dangerous turns. You will feel lonely and anxious if going alone. If you have a companion, you will gain more confidence. When setting up a business, every owner would want it to survive, grow and conquer new challenges. With the same logic, a business should have a com-

panion to go the long way.

ho is the companion? Well, it could be a col-league. A colleague who does not have the same customers, who could exchange mar-ket information to support each other. How to fully understand your companion? I will

quote Mr. Alan Phan in his book “42 years of doing business in the US and China”:

“Running a business successfully is about maintain-ing a balance between different types of relationships in a complex extended family. The family in which the customer is the father, the shareholder is the mother, the bank is the mistress, the supplier is a sibling, the competitors are neighbors, the employees are chil-dren and the authorities are distant relatives”.

All these “subjects” can be your companion! The long-term relationship with customers, the trust of share-holders and the banks, the loyalty of suppliers, the dedication of employees, the support of the authori-ties, all are necessary for a long journey.

In this article, I will write about a companion described as the “mother” by Alan Phan. Specifically, it’s about the interaction between members of the PAN Group to each other and the Mother company.

When I needed to find a connection for Sao Ta to rent land for shrimp farming, Ms. Line, Chairman of Vi-naseed’s Board of Directors, quickly assisted. No matter the results, I’m overwhelmed by the support of the member companies. We have been through a rollercoaster of emotions in the past two years of the pandemic. If I was not in the Viber group of PAN, I wouldn’t have known about the concept of “3 on-site” which took place in July 2021 at Lafooco, Long An.

I tend to overthink. That’s why Sao Ta and KAF (Khang An Foods) immediately prepared for “3 on-site”. Just half a month later, we operated“3 on-site” smoothly without any hiccups. Before that, at the end of April 2021, when over 320 shrimp ponds of Sao Ta were “im-poverished”, the Chairman of The PAN Group came to the rescue and made a significant contribution to that successful harvest season.

When operating “3 on-site”, it was difficult to supply antigen test kits due to the sudden increase in de-mand. At that time, the CEO of PAN purchased and sent kits all the way from Hanoi. She also sent them as a gift of encouragement. We were delighted to re-ceive the kits, but even more happy to know that they were… free!

Actually, we have a lot of interactions between mem-ber companies, it’s hard to count them all. Frankly speaking, having a strategic partner brings tremen-dous benefits. Although it puts a lot of pressure on the business at the beginning, the strategic partner becomes the driving force for the business to thrive in the long run.

I will demonstrate with numbers so it’s easier to un-derstand. PAN joined Sao Ta at the beginning of 2018. If we compare 2020’s numbers to 2017’s, Sao Ta has increased 25% in outputs, 24% in revenue, and 109% in profits in just 3 years. Previously, it was already a suc-cess to grow 5%. The success is not by luck or purely by the efforts of Sao Ta. It also stems from the efforts and support of PAN. Most notably, in the same time frame, Sao Ta’s shrimp farming area increased from 130 ha to 270 ha, outputs increased fourfold. Even with the fact that shrimp farming is the most challenging sector for any shrimp process business.

PAN also advised Sao Ta on key strategies such as finding new shrimp farming areas, developing the next generation leaders, finding opportunities to promote existing strengths, taking good care of the human resources,

etc. Most recently, PAN supported to balance the sharehold-er portfolio, with new shareholders being foreign enterprises investing in Vietnam. This new shareholder has a close eco-system with Sao Ta, so both parties could support and learn from each other. The road is still long, with PAN as the com-panion, Sao Ta still has someone to lean on. Sao Ta will have more energies and inspiration to reach bigger goals such as increasing the farming area to 500 ha, revenue to over 300 billion VND in the next 3 years, fulfilling the goals of the 2020-2025 strategic plan one year earlier.

COVID-19 is not yet over. There are still many challeng-es ahead. More than ever we need a companion to share the struggles and help each other overcome the obstacles. Through this article, on behalf of Sao Ta, I would like to send sincere thanks to Ms. Lien of Vinaseed, Mr. Son of Lafooco, to all the member companies and the lovely friends at PAN Of-fice such as Hiep, Tuan, Anh, Ha, Ngoc. You are always ready to support us. I hope that the whole Group can overcome this storm so that we can meet each other at the Year-end party with our hearts filled with joy.

Ho Quoc LucChairman of Sao Ta

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KHANG AN FOODS:THE “ON-SITE CAMPING” STORY and

“Emergency meeting” has become a regular activity of Khang An Foods (KAF) in the past few months to quickly inform about the new policies of the company and draw plans for each de-partment. The main goal was to ensure all employees fully understand the risks of the COVID-19 pandemic. The com-pany conducted a survey to get the opinions of all employ-ees. The “3 on-site” campaign received voluntary support and participation of 700 employees, from the management team to the workers. We called it “a camping” at the company site.

Eliminate risks from outside

In planning, KAF assigned specific tasks to each department with the motto “quick and efficient”. Firstly, KAF accepted risks in testing samples of input materials. Drivers did not have to get off the vehicle to hand over documents. Instead, they must remain in the car during the whole process. On the other hand, they had to present a negative test within the last three days to the security guard. The staff working on-site to unload goods must wear protective clothing, hats, glass-es, and masks during the whole process. After checking and receiving goods, the warehouse department had to print a signed ticket and send it to the temporary office located out-side the company so that the delivery driver could come to pick it up. The place of delivery was fully equipped with hand sanitizer and was disinfected regularly. Raw materials were brought into the factory only after 48 hours of disinfection. The whole process was monitored by security cameras.

In order to eliminate risks brought in by the workers, KAF ar-ranged vehicles to move all employees to a temporary shel-ter. Everyone must get a negative rapid test to be able to get into the factory. The company also divided employees into dif-

ferent groups of different risk levels. The Warehouse, Securi-ty, and Driver teams are at the highest risk as they have to be in contact with people from outside. They were arranged sep-arate accommodation to avoid contact with the other groups.At the same time, the company also controlled all the move-ment of workers. For example, workers who had to go back

Editor’s note:Despite being only nine months old, Khang An Foods, a member of Sao Ta, has shown great cooperation and teamwork between the departments during the “3 on-site” period. The security, the warehouse and drivers team, the office team, the mechanical team, the workers at the Fisheries and Agricultural Products factory, all have become important links in the “army”. How did they overcome the 4th outbreak of the pandemic? Find out in this article written by Ms. Ho Hoa Dong, Deputy General Director of Khang An Foods.

THE STRENGTHOF “AN ARMY”

Organizing meals for employees at the “camp” was consid-ered the most important stage. KAF sponsored three meals per day for all employees, including the days off. The company regularly reviewed the daily menu to improve and ensure ad-equate nutrition values. In the canteen, each table was posi-tioned at safe distance with partitions to ensure the social dis-tancing rules. The kitchen team was also not allowed to leave the company’s premises. Ingredients were also delivered to the dedicated shelves arranged outside.

Maintain the sharing culture

Sao Ta and KAF take pride in their sharing culture. During the “3 on-site” period, KAF organized a program titled “Be each other’s sunshine” so that the office team which was positioned outside the company’s premises could send support to the “3 on-site” team. The “sunshine” being sent is the small gifts full of love and support from colleagues. The beauty of this program is that the costs were contributed by the outside team.

Every morning, the “Be each other’s sunshine” booth was filled with milk cartons, cake boxes, fruit bags, etc. dedicated to 700 employees of Khang An Foods. The booth also received support from the Board of Directors of The PAN Group and the partners of KAF.

After implementing 3OS, KAF has achieved remarkable achieve-ments. Despite the increasing cost, the implementation of “3 on-site” has brought great effects. The company was able to main-tain 80% of production capacity, ensure income for employees, and maintain orders for customers. Through this story, it can be seen that the company could easily overcome the barriers when they are on the same page with the employees. By doing so, the company could build its own “army”, a united team sharing the same goal.

Ho Hoa DongDeputy General Director of Khang An Foods.

out due to family problems needed to get a negative PCR test at the hospital and quarantined for 7 days at the isolation area of the factory. KAF conducted daily disinfection to ensure the cleanliness and the highest level of safety for the employees’ living space. At the same time, the company conducted weekly tests for all workers during the “camping” period. In addition, another important thing is that all workers are supported by the company to receive COVID-19 vaccines. Until now, KAF has completed the 2nd dose vaccination for all employees in-cluding the contractors working at KAF.

Taking care of employees’ wellbeing

To maintain production efficiency, it’s very important to en-sure the living conditions of workers. All necessities such as mosquito nets, blankets, mats, pillows, charging sockets, fans, etc. are given. The WC area is arranged as close to the living space as possible with enough supply of toilet paper, shower gel, shampoo, etc. KAF arranged washing and dry-ing places in each area. Clothes would be dried right after washing. The company also issued rules such as maintaining general hygiene, keeping down the noise, curfew hours, alco-hol ban, etc.

On the other hand, KAF also organized recreational activities for employees such as sports or cultural events. Wifi was in-stalled with enough capacity for 700 people and the TV was

turned on from 5 a.m. until 9 p.m. The empty parking lots were transformed into venues for soccer, table tennis, bad-minton, and other sports. On days off, the company organized team-building activities to unite the whole team.

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VINASEEDACCOMPANIES SAN DIU PEOPLETO MANUFACTURE VIETGAP RICEPRODUCTION

Vinaseed has managed to change the San Diu peo-ple’s mindset and farm-ing methods through the introduction of a rice pro-duction value chain meeting VietGAP stan-dards. It is a closed-loop value chain from produc-tion to pur-chasing and consumption.

It’s not easy to persuade people of ethnic minorities in the highlands to change their farming methods or their usage of Khanh Dan and Bao Thai rice varieties. But it is not impossible! For three consecutive years, the VNR 20 rice variety of Vinaseed has been well received by the local people. The farming area of this variety has been expanding ever since.

Mr. Duong Van Hien, Head of Economic Department of Pho Yen Commune, said that the Department selected 4 hamlets of Dam Muong region to deploy the model based on the request of the supplier, the characteristics of the variety, and the business plan of the town.

This is a concentrated field with suitable soil conditions for the production plan and no chemical, biological or physical

Establishing a committee toproduce VietGAP rice

pollution hazards. The success of the model in residential areas where 95% of the population are ethnic minorities will create a great butterfly effect. It will lead to a change in farming methods, approaching new trends towards safety and sustainability. Ms. Tran Thi Hai, Vice Chairman of Minh Duc Commune People’s Committee, said the model was deployed on a scale of 30 hectares. To ensure the effectiveness of the model, the Commune People’s Committee has established a Steering Committee for the implementation of the model to build infrastructure for intra-field roads and complete the irrigation system. At the same time, a cooperative group was established as the main contact with suppliers.

Mr. Chu Duc Luan, leader of the VNR 20 rice production cooperative group in Dam Muong region, said that the cooperative group was instructed to monitor the rice production log according to VietGAP. At the same time, each household was given guidelines to comply with the production process, meeting the requirements of participating in the local OCOP product certification cycle. Mr. Lai Hung Kim, Secretary of the local Party of Dam Muong village, said that the Dam Muong field is 70ha wide. By participating in the model, the field is invested with a new infrastructure system for easy and convenient irrigation.

Farmers were trained and guided on the technical process of planting, nurturing, and preventing pests and diseases for rice crops. The training focused on transferring advanced farming processes, integrated pest management processes such as IPM and ICM, post-harvest preservation and processing techniques. Farmers were advised on applying advanced planting, watering, and fertilizing techniques to improve the efficiency of fertilizer, as well as the control of pests and diseases on rice crops.

The new production process might be too advanced for local people. For that reason, the Steering Committee hired

experts to monitor all the technical aspects of the production process to make timely adjustments.

Mr. Chu Van Hung, former head of the plant protection station in Pho Yen town, was one of the experts invited for this project. “The pesticides used are on the list of permits used in Vietnam, which fully comply with the “4 rights” principle”, he said. Water is sourced directly from the Nui Coc canal, not affected by industrial, medical, or domestic waste. Through monitoring, VNR 20 is a variety with strong stem, good resistance to shedding, strong tillering with no occurrence of blast disease, leaf blight, etc.

Mr. Pham Van Luong, a household participant in the model, said, “Training seems difficult, but when starting to work, people find it very easy”. Each household was fully supported with seeds, fertilizers, and pesticides. On the field day, it was like a festival in the neighborhood. The agency mechanized all stages of plowing and harrowing, using large-capacity tilling machines to improve soil quality and step by step clear and even the field surface. Harvest day was another festival. People in all 4 villages came out to see the paddy reaper running on the fields. The best thing is the authorities organized to buy out all the outputs with prices higher than the market rate by 10%.

“Besides economic efficiency, people are very happy that we can limit the negative

impact on the environment and ensure the health and safety of farmers. In the field now you can see the reappearance of fish, shrimp, and frogs”, said Mr. Chu Duc Minh - a local farmer. Mr. Tran Van Thu, Director of Pho Yen Agricultural Materials Branch (Thai Nguyen Agricultural Materials Joint Stock Company) said that the unit had purchased rice from farmers and transferred it to Vinaseed for processing. The product is well received by the market. Even the San Diu people in Dam Muong themselves are also fond of VNR 20 rice. The VNR 20 variety in Thai Nguyen has a higher yield than the average in other areas in the whole country, reaching 75-85 quintals per ha. Profit is also higher by 10-15%, equivalent to 400 - 600 thousand VND per “sao”. With the rapid industrial development in Pho Yen town, it is very important to choose a variety like VNR 20 that could meet the expectation of the people as well as the current production trend. Mr. Tran Van Doanh, Sales Director of Vinaseed said that the company is always willing to support, supply, and coordinate to implement and expand the model in other areas.

Dong Van Thuong - Nguyen ToanVietnam Agriculture

* Photo 1 : Aside from economic efficiency, the VNR20 rice variety meets the social and environmental aspirations of

people in the highlands. (by Dong Van Thuong).

*Photo 2 : San Diu people in Minh Duc commune (Phu Yen town, Thai Nguyen) are very excited about the VietGAP rice production. (by Dong Van Thuong).

The farming “festival”

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A H E A L T H Y & O R G A N I C P R O D U C T

PROBIOTICINSTANT ARABICA

COFFEE

A ccording to recent statistics, more than 57% of global consumers start worrying about their immune systems due to COVID-19. Dietary supplements that help support and strengthen

the body’s immune system are now the new trend among consumers. The body’s immune cells are often in the intestinal tract. For that reason, one of the most effective ways to help strengthen the immune system is to protect the intestinal tract and supplement probiotics for the digestive system.

In 2015, PAN Food received the unique heat-resistant Bacillus Subtilis HU58 probiotic technology transferred from the UK. This technology allows the application of probiotics in advanced industrial production lines. Probiotics then can be preserved and used in daily food products. In this technology, Bacillus Subtilis HU58 forms 100% heat-stable spores which act like an “armor” to protect the probiotics in the acidic environment of the stomach and withstand temperatures up to more than 80 degrees Celsius. Bacillus Subtilis HU58 can grow and sporulate in the anaerobic digestive tract. Simultaneously with high spore production efficiency, it will form a biofilm to help support the intestinal tract in particular and the digestive system in general.

SHIN Ca Phe applies HU58 technology to add beneficial bacteria (probiotics) to freeze-dried instant arabica coffee products. It’s a safe and high-quality product that could support digestion and strengthen the immune system of consumers.

Freeze drying is also a modern coffee processing method, helping to retain the top-quality flavor and taste. Instant coffee processed by this method has an authentic flavor from the fragrant roasted beans with a sour, rich, and sweet aftertaste.“Freeze-dried instant coffee with added probiotics is a new direction in the market, stemming from the relentless research of our team of coffee lovers,” said Mr. Nguyen Huu Long, Brand Representative of SHIN.

With the freeze-drying method, the producer does not need to use flavorings, additives, or food colorings. Freeze-dried instant coffee uses 100% arabica coffee beans with added sugar of less than 40% (European standards). It’s safe to consume and suitable for everyone. In addition, each box of coffee (10 packs per box) also has more than 720 million added Bacillus Subtilis HU58 probiotics which are beneficial for the digestive and immune systems.

Mai Huong - Thanh ThuySHIN Cà Phê

SHIN CA PHE CREATES A DIFFERENCE FOR ITS PROBIOTIC INSTANT ARABICA COFFEE BY MAXIMIZING THE

HEALTH BENEFITS. THE COFFEE IS BREWED FROM PREMIUM ARABICA BEANS AND CONTAINS LESS SUGAR

AND ADDED PROBIOTICS. IT IS THEN PROCESSED BY MODERN FREEZE-DRYING TECHNOLOGY. PROBIOTIC

INSTANT ARABICA COFFEE IS SUITABLE FOR DAILY USE TO BUILD A FOUNDATION FOR HEALTHY LIVING.

PRODUCT STORY

According to a market survey, “bubble milk tea” is still the #1 beverage of young people in 2021. Previously, this drink became one of the new trends of 2019 and reached the top spot in 2020. The trend continues for a long time with new variations such as using black sugar pearls added to milk tea. Grasping the trend, Bibica launched a new product — AHHA boba soft candies, blending the delicious flavor of milk tea and the sweet and chewy taste of boba.

AHHA Boba soft candy is produced in the most modern production line of BIbica applied European technology meeting HACCP & food safety and hygiene standards.

The modern production line helps improve the texture of the product by making it more flexible, chewy, soft, and bouncy. This is a unique product, the first of its kind in the Vietnamese candy market. The product promises to bring extremely satisfactory tasting experiences to consumers.

Aware of the responsibility of the FMCG industry in general and the confectionery industry in particular, Bibica always carefully selects, inspects, and controls the quality of input materials. The company prioritizes using natural ingredients with the least preservatives. AHHA boba soft candy is created from 100% natural flavoring fruit juice and milk content of 8%. The candies are chewy, soft, with a rich and addictive flavor. They melt quickly without sticking to the teeth.

Aside from boba flavor, Bibica also introduces three other fruit flavors including strawberry, tamarind, and orange to give consumers more choices depending on their own taste. The product is suitable for consumers of all ages, a favorite for both children and adults. With the launching of this new product, Bibica also introduces a new product packaging with a more striking design albeit still familiar with the previous branding.

Developed by experts with years of experience researching Vietnamese confectionery, Bibica’s AHHA boba soft candy is a new product line grasping the current trend of the market. The product is a suitable choice for parties or snack time or as a gift for the children.

Quach Thao

Bibica

Product labels and packaging are systemized by colors corresponding to the protein levels of the product, including yellow (60 degrees of

protein), red (40 degrees), black (35 degrees), orange (30 degrees), green (20 degrees).

From the iridescent fresh anchovies and full-flavored sea salt, together with a rigid processing method of hundreds of years of tradition, each drop of 584 Nha Trang anchovies fish sauce is distilled from the harmony of human and nature. It is the unique, flavorful taste that has helped 584 Nha Trang win over

consumers in the domestic and foreign markets in the last 45 years.

After 45 years of development, 584 Nha Trang has always been one of the top fish sauce brands in the country. For over 20 years, the brand has been known as a high-quality Vietnamese product. The company also received the Vietnam Gold Star Award for 10 consecutive years. In addition, 584 Nha Trang Fish Sauce is also one of the five products of The PAN Group to receive the “National Brand” certification.

Duong Thuy

584 Nha Trang

584 Nha Trang Seafood Joint Stock Company officially completed and launched a new brand identity to improve and synchronize the quality of packaging, product design and increase brand awareness of 584 Nha Trang.


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Coco Food is the official distributor of The PAN Group’s products such as Vinaseed fresh rice, 584 Nha Trang fish sauce, Lafooco’s cashew, and mixed nuts, Bibica confectionery and SHIN Ca Phe coffee, etc. Coco Food is also the official partner of the Group at many important events such as ASEAN Summit 2020 and Vietnam Card Day 2020.

Coco Food’s corporate gift set for the

Lunar New Year.

Coco Food always strives to pursue core cultural values to realize the mission of “Improving the quality of everyday life”. The company aims to change the outlook of life, helping customers access professional services in the most convenient way by choosing convenient and better quality products. The company’s motto is “be an expert, be a daily shopping assistant for every family”, committing to enhancing customers’ experience of “Happy Shopping”.

Aside from participating with PAN at important events such as ASEAN Summit 2020, Vietnam Card Day 2020, Coco Food is also one of PAN’s main suppliers for gift products on Tet and special holidays. Coco Food’s branded products are not only safe and traceable but also visually stunning with references to traditional cultural values. Corporate gift service is an important pillar of the company besides distribution and retail services.

In 2021, Coco Food took many measurements to improve efficiency. The company perfected the operating process by applying information technology in finding and evaluating partners, products and improving inventory quality. Coco Food also launched multi-channel sales services, integrated new diversified payment options, and collaborated with leading transporting units in Vietnam. All the measurements were aimed at improving service quality, shipping products to customers as quickly and conveniently as possible.

Aside from distribution, Coco Food also researched and developed its own branded products. The focus was daily necessities with luxurious and elegant packaging. A highlight is the premium Shan Tuyet Pu-Er tea launched in the third quarter of 2021. After the launch, the product was quickly well-received by the market thanks to its unique flavor and health benefits. The product is also highly appreciated by tea lovers and is a popular gift selection of many companies.

According to a Coco Food representative, in the near future, the company will evaluate and diversify its product portfolio for corporate partners as well as research and develop new branded products for consumers. The company will also carry out more CSR activities to perform its social responsibility.

At the moment, Coco Food has started receiving orders and building business plans for 2022 Tet gift sets. Under the message “A new beginning”, Coco Food’s Tet gift sets will be a thoughtful gift full of love, positivity, and optimism of the new beginning after the COVID-19 pandemic.

The Editor Board

The PAN Group

Coach Park Hang Seo received New Year’s gifts from the Prime Minister. The gifts were researched and developed by CocoFood

PAN and Coco Food’s booth at Vietnam Card Day 2020


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Many things happened at Sao Ta shrimp farm in 2021. As you know, sellers al-ways need buyers. Sao Ta shrimp grew too quickly, the factory could not supply enough food.

At the end of April, Sao Ta had to ask the Chairman of PAN to talk to the factory. That was the first attempt to address these needs. In mid-June, the shrimps grew even bigger and needed more food. Chairman of Sao Ta came to the rescue for the second time.

In early July, COVID-19 reached Soc Trang. This time, we had to harvest 1,000 tons of shrimp in only ten days, which was then shortened by one day. It was a success, without any damage, except the mental strain of trying to persuade the officers at the checkpoints to let the transporting vehicles through. The evacuation finished 30 hours before the province implemented a lockdown as per Directive 16 of the Government.

3 rescuing the shrimp!

times

Under Directive 16, all movements were restricted. At this time, Soc Trang priori-tized vaccines for “3 on-site” workers. But our shrimp farm is far away from the city, not sure when the vaccine could reach here. So we gathered the key workers of over 20 people to take two turns in a 16-seat car.

Persuaded the officer at the checkpoint at Vinh Chau town. PASSED.Persuaded the officer at the checkpoint at My Xuyen district. PASSED.Persuaded the officer at the checkpoint at Soc Trang city, only 5 km from the vacci-nation center. DID NOT ALLOWED TO GO THROUGH!

We could not have our efforts wasted like this, especially when we had successfully requested the vaccine. We then turned around to convince the Industrial Park (lo-cated in the suburb of Soc Trang City) to let the car park there. Everyone was then transferred to two 9-seat cars from Soc Trang city. These two cars had permission to go in and out of the city as issued by the Industrial Park. That’s how the team was able to get vaccinated.

Following Directive 16, the company organized 3 on-site (3OS) for 2 weeks starting from July 19. Then we had to extend 3OS for two more weeks until August 17, then another two weeks till early September. The third time, travel restrictions eased a bit as the province took good control of the outbreak. From 5 September, as the situation was un-der control, the workforce of Sao Ta in-creased from 40% to 80%. Things start-ed to go back to normal.

This happened in the Industrial Park. We only heard the rumors from other companies.

There’s a female worker climbing the wall to escape after 3OS was ex-tended for another two weeks. The reason was that her husband an-nounced that he would get a divorce if she did not come back home!

Another male worker climbed the wall to escape after his wife gave birth to their first child. He then called the manager to apologize and promise to name his son after the company to commemorate! The manager could only laugh it off, and promised to let him return to work after the pandem-ic is over so that he could earn money to raise his children!

After one week of 3OS, there’s this female worker who complained that it was too stressful. She then climbed the wall to escape. The wall is actu-ally very high and the whole city was in lockdown, we just wonder how did she climb over it and how did she arrive home? Maybe we will find the answers after the pandemic is over!

There were 3 times Sao Ta faced the risk of having F1 & F0 cases in the factory. Good heavens, luckily, all tests returned negative. Although we knew that it was impossible to have a positive case:

The first time was the first F1 of the province. This female worker’s husband is a lorry driver, he was the first F0 in the province. However, the female worker tested negative.

The second time, a female worker took a week off to go on holiday with her boyfriend - a worker came back home from Ho Chi Minh City. He later tested positive! She was in close contact with him but tested negative multiple times. It’s hard to believe, but it’s a relief!

The third time was a driver of Khang An Foods. He got an antigen test then later was contacted to take a PCR test because the antigen test was positive. The PCR test was negative. The truth is the antigen test was also negative. They mixed up the results and contacted the wrong person. Another relief!

Sao Ta Family

3holding our breath because of F0, F1!

times

3 extending“3 on-site”

times

3 climbing the wall!

times

3 persua-ding!

times

SOME FUN STORIES DURING THE PAN-DEMIC

PANinsight THROUGH THE EYES OF PANERSQ3 | 2021

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Nobody would have thought that one day they would be confined in their house or workplace like this. Even dining, such a basic need, would become so difficult to satisfy. This scenario could only happen in Hollywood movies, but now it’s a reality for each and every one of us in the second year of COVID-19.

THE COVID-19 STORY:

IT’S LIKE A HOLLYWOOD MOVIE

nstant noodles are one of my favorite dishes. I could eat it all day without getting bored. But now I can’t enjoy it anymore as it’s on the menu every

day. During the pandemic, nobody could be happy except for instant noodle man-ufacturers because their products are sold out. Vietnam must be rising in the ranking of instant noodles consumption in 2021.

The road that I used to take to go to work was usually full of dust as there were trucks and cars everywhere. With-out a windshield, it would be difficult to keep your eyes open on the road. But now, still on the same road, the traffic is sparse. Even without glasses, there’s no dust sticking to your eyes.

I’m happy and sad at the same time. Happy because the air quality is better and sad because I no longer hear the familiar sounds of traffic that I got used to. You could still meet up with friends and relatives who live far away but now it’s impossible. We can only get in touch through the screens.

The pandemic has disrupted all of our social and business activities in every country and every industry. The Viet-namese shrimp industry is not an ex-ception. Amid the pandemic, several businesses have chosen to implement “3 on-site” to maintain production.

It’s worrisome to choose this strategy because there are too many difficul-ties. The main difficulty for shrimp pro-cessing factories, in particular, is the

increasing production cost of social distancing measures, antigen tests, workers’ wages, and transportation costs.

Workers are also wor-ried because they don’t want to stay far away from home and family. There’s also the fear of having an F0 case on the premises of the compa-ny, or people making a joke that “the goal can be scored” at any time. Not to mention fears of not having enough raw materials sources, not meeting the require-ments of the signed contracts, and of having to compensate for partners.

Sao Ta Joint Stock Company, where I work, also had to go through four weeks of 3OS. At first, only 40% of the work-force participated in the program. It lat-er increased to 60% thanks to the ease of travel restrictions.

In these four weeks, it took nearly a week just for preparation. We tried to make use of all available spaces. The men shared the main halls while the women could use more spacious and discreet places. The management board and everyone in the company to-gether contributed to adding more vari-ety to the meals including yogurt, fruit, cakes, etc. to encourage everyone to keep up their spirits.

The most memorable experience is probably the multiple antigen tests. There is also a huge cost to pay for thousands of test kits and the stinging feeling when the test stick stuck in the nose, we were all happy to know that we were all healthy.

Together we shall overcome these chal-lenging times. During this period, busi-ness results and productivity were not so good due to the reduced number of workers, especially skilled workers and everyone, in general, was anxious.

However, the situation is getting better. The vaccine campaign has been imple-mented nationwide, Sao Ta together with the local health department has given vaccines to all workers so that they could return to work safely.

I’m really happy and appreciated that the Management Board has made bold and reasonable decisions to maintain production. For that reason, production activities were not severely affected by the pandemic and we did not have to “take a break”. Hopefully, the pandemic will be over soon and everything will be back to normal.

Tran Quang ThaiSao Ta (Fimex VN)

The pandemic has dis-rupted all of our social and business activities

in every country and every industry.

VACCINE


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IN THE COVID SEASON”3Os is probably an unforgettable expe-rience for many businesses, especially the ones that use a lot of manual labor like frozen food processing companies. There are various reasons why, such as the cost of COVID test kits, food, and ac-commodation for hundreds of workers.

However, the difficulties could not stop the enthusiasm and determination of the Management Board of Khang An Foods and all employees in the company.

For our Logistics department, through 3OS, we have gained more confidence and realized more opportunities from the seeming threats. We have more faith in the bright future of the company thanks to the clear vision of the Man-agement Board and the enthusiasm of the employees.

Our department has three main tasks: Book shipments to international mar-kets, perform customs procedures to get containers on board, and finally pro-vide documents for customs clearance so that the shipments could be delivered to customers. It sounds simple but in re-ality, it’s much more complicated.

Booking ships during this period is very difficult for all frozen food exporters. People thought that it’s a simple trans-action: the booker is the buyer and the shipowner is the seller. The seller is supposed to provide the best service for the buyer so that they could keep the partnership.

However, things are now different, es-pecially for shipments to the US. Ship-ping lines become the customers and the bookers are the servants in the sense that we must book 3 or 4 weeks in advance before the departure date. And sometimes the booking can be canceled without any notice.

The reason is the current demand for exporting goods from Vietnam to the US is high while the capacity is limited. Most ships leaving Vietnam to the US originate from China. They have to store Chinese goods first and we only have a few remaining spots. This is a huge dis-advantage for Vietnamese businesses exporting to the US at the moment.

Another reason is that the pandemic is affecting the circulation of containers

worldwide, not to mention accidents such as in the Suez Canal. Shipping lines have to change schedules con-stantly and sometimes cancel or delay departure dates.

One more important thing is that many shipping lines have been merged re-cently, which increases the monopoly in this industry. Since April 2021, ship-ping rates to the US have increased by over 200%. For the above reasons, it is very difficult and expensive to export goods to the US in 2021.

During 3OS, Khang An had a number of containers that had already been processed and just waited to be deliv-ered to customers on time. Although we knew that we had to book a month in advance, the shipping company said that they ran out of place as there were too many containers from China.

Through hardships, we gained more confi-dence in the future of Khang An Foods.

The logistics story“

Van Trong The Khang An Foods

This happened not only in one port but several ports exporting to the US. This put a lot of pressure on the company. We were at risk of losing trust with cus-tomers, incurring storage costs, loan interest, and running out of capital to maintain business activities.

At the same time, Directive 16 forced all businesses in 12 southern provinces to implement 3OS. The miracle actu-ally happened here. Many businesses decided to “take a break” because they thought 3OS wouldn’t last long and im-plementing 3OS could bring more harm than benefits. However, at Khang An Foods, the Management Board realized that the pandemic was here to stay and we needed to live safely with it.

Many businesses had a good reason to cancel orders or request a delayed de-livery, leading to many booking cancel-lations. For that reason, our containers got the slots and were able to be de-livered on time. This helped relieve the pressure for our department as well as give more reasons for the Management Board to believe that implementing 3OS was the right decision for the sit-uation. Moreover, we could gain trust from customers and we could expect more orders from them in the future. However, that was not the end. After finishing the booking and all relevant procedures, the un-thinkable happened. The ship-ping line reported that the ware-house address of our delivery was not within their delivery area, even though it was only a few miles away.

Once again we had to come up with a solution. After discussing with the cus-tomer and the shipping line, we agreed that the shipping line only needed to de-liver the container to the port instead of the warehouse. Because we had a good relationship with the customer, they understood the difficulty and we quickly came to a mutual decision. They under-stood that the company already suffered from the increasing shipping rates, so they agreed to change the delivery con-dition without price adjustment.

The same condition would be applica-ble for other shipments and contracts in the future. We felt relieved that we could reduce a part of the delivery cost compared to the original plan.

Through 3OS, our Logistics department realized that the advantages of the past might not be the advantages of today. And vice versa, the difficulties of 3OS and the pandemic could become a huge opportunity.

Through hardships, we gained more confidence

in the future of Khang An Foods. De-spite being less than a year old, with the clear vision of the Management Board, the company would overcome the difficulties to become stronger in the future.

Another lesson learned is that we al-ways need a backup plan. If the situa-tion changes, we can still have a safety net. We will apply this in our work for now and in the future. At the same time, we always have to adapt to all changes and be more positive in life.

However, the difficulties could not stop the enthusiasm and determination of the Management Board of

Khang An Foods and all employees in the company.

QUÝ 3.2021

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PANinsight THROUGH THE EYES OF PANERS

After four weeks of 3OS, Soc Trang province deployed a flexible strategy following Directive 16. The province is divided into four color zones based on the number of cases with four levels of checkpoints.

Workers in the safe (green) and low-risk (yellow) zones can return to work. Thanks to that, more and more work-ers at my company gradually came back to work. These workers, however, must undergo a medical examination and work in a separate zone. After one week, they could mingle with the ones who did 3OS. That’s why production ac-tivities did not resume quickly but rath-er SAFELY.

Looking back on the process of or-ganizing production from mid-July to mid-September, we feel so relieved now. For that period, each day seems to be longer than usual.

Every year, the harvesting months are usually the peak months for business

activities of shrimp processing compa-nies like Sao Ta. However, last August, our profit was negative, mainly because of the increasing cost of 3OS. But we have no regrets. It’s already a bright spot in the murky socio-economic pic-ture that the company could still exist and operate as usual.

Maintaining production, despite hav-ing no profit, would provide income for thousands of employees, rescue shrimp farmers in time, and provide enough supply for partners so that they could maintain their businesses. In general, the biggest benefit is that the shrimp supply chain is not interrupted.

The executives of Sao Ta have undeniably been anxious during this whole time. But it’s not because they want to be pessi-mistic. Despondent? No way. Because COVID-19 might not be the biggest chal-lenge that Sao Ta has ever faced.

Marketplace, by its nature, is a game to find the survivor. That’s why we are

so used to the challenges. Our lesson learned is that we need to have a multi-di-mensional perspective to see things more clearly to make the right judgment. From there we can prepare an early solution to brace against the storm. At the same time, we need to make quick decisions to minimize the damage.

And above all, we need the joint efforts of the whole team, from the leaders to the workers.

Sao Ta Family

Marketplace, by its nature, is a game to find the survivor. That’s why we are so used to the challenges. Our lesson learned is that we need to have a multi-dimensional perspec-tive to see things more clearly to make the right judgment.

COVID-19MIGHT NOT BE THE BIGGEST CHALLENGE

Through each episode, VFC wants to share good practices and effective mod-els from experts so that farmers could apply them in production. The program could easily approach farmers thanks to the humorous skits, highly effective farming models, and practical stories introduced in each episode.

This year, “VFC - Integrated rice fields” has accompanied farmers in Hau Gi-ang, Soc Trang, and Dong Thap through informative programs broadcasted on the local TV channels. The program helps farmers approach new farm techniques, new technical advances and new advanced solutions that have been applied by VFC on model integrat-ed rice fields with the goal of “Efficiency - Safety - Profit”.

The program was maintained thanks to the efforts of the production crews and the VFC team, especially during the so-cial distancing period. The crew tried their best to get close to the farmers. Wading through the rice fields in the middle of a scorching hot day was an everyday routine.

Despite many difficulties in transpor-tation, social distancing rules, tech-nique problems, VFC and the TV crew still tried their best to maintain the program. At the same time, the whole team still strictly followed the 5K rules to ensure safety.

about the impacts of COVID-19. They wondered if the buyers would come to purchase, if the selling price would de-crease, if the price of input materials would increase, etc.

After the call, we were both happy and sad. We rejoiced that the farmers could have a successful harvest season and we sympathized with their difficulties. At that time, we could only hope that the pro-gram could grow stronger so that more farmers could apply the integrating rice production process. Through that, they could increase profits and reduce costs in seeds, fertilizers, pesticides while still ensuring optimal productivity.

With that belief, we have more motiva-tion to continue accompanying farmers to optimize productivity and enhance rice quality. Vietnamese rice products will all have similar quality to meet the standards so that Vietnamese will en-hance its value and affirm its position in the global market.

VFC team

After nearly 10 years of implementing “Backing farmers”, VFC has built a solid foundation to implement the new program “Integrated rice fields”. The program aims to create opportunities for

farmers to change farming methods, build a synchronized cooperative and join hands to enhance the value of the rice grain, increase income and improve the competitiveness of Vietnamese rice

in the international market. This article written by the program operation team will provide an in-depth understanding of this mission of bringing true quality values to farmers.

E D I T O R ’ S N O T E

The crew tried their best to get close to the farmers. Wading through the rice fields in the middle of a scorching hot day was an everyday routine.

Recalling the early days in July, when we received the calls from the farm-ers, they sounded so joyful and excit-ed. It was a stark contrast to the silent streets when social distancing was still in place. The farmers informed us about the results of the harvest. The average yield was about 7 tons per ha and there was a significant reduction in the use of fertilizers and pesticides. We couldn’t be happier. However, after a few minutes, they suddenly felt worried


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MORE HAPPY SEASONS ON THE INTEGRATED RICE FIELD


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POEMS ABOUT THE FIGHT AGAINSTCOVID-19

I W

ant

I want the pandemic to be overto not wear masks every dayTo go everywhereno more COVID threatening our livesI want no more restrictionsso everyone can be togetherI want our childrencan go back to school and enjoy their timeI want everybody to be happyas a beautiful flower in this peaceful lifeI want the company to stay strongour country is full of joy

107

Dear Ms. 1915, 16 - the full moon age17, 18 - the most beautiful age19 - you are starting to changeFever, cough, shortness of breathYou become unbearable.

Since you came hometravel restrictions everywhereyou caused interruptionmany people shed tears.

COVID-19 my dear!why do you destroy our lives?everybody go against youwhen you’re gone, the village is peaceful.

You are not a good girlnobody invited you herei want to separategoing to court to file a divorce

No more flowers blooming on the balconyeven though bees and butterflies still come oftenwhy is it getting stormy?so the flower have to hide their beautyduyên tình đây đó bao lajust me, myself and Inine silently waits for ten to comeCOVID-19 is not pretty at all.

15 days of social distancingoh! Why is it so long?From tomorrowwe count the days

We’re determined to slow the spreadgive them no place to “live”Through this hardshipwe all stay healthy.

We care for each othercomply with 5KDon’t be negligentfor Corona to be gone.

15 D

ays O

f

Socia

l Dist

ancin

g

We’re social distancing for real now

Not as comfortable as yesterday

Whether near or farNow the distance makes us sad

The disease comes, we have to be careful

Everyone fights against the pandemic

We remember to follow 5K

COVID-19 is dangerous

Mask, social distancing, everywhere

Disinfection, do not gather in big groups

Declare our health status

Hope the pandemic will end soon.

Social distancing

Nguyen Van CuSao Ta (Fimex VN)

THROUGH THE EYES OF PANERS

5S is the basic foundation to implement the quality assurance system. The philosophy of the model is that productivity will be higher if workers can work in a healthy, clean, airy, and convenient environment. From that, it will be easier to facilitate the application of a quality manage-ment system.

5S is the first letter of the Japanese words “SERI”, “SEITON”, “SEISO”, “SEIKETSU” and “SHITKESU” which are roughly translated as “Screen”, “Sort”, “Clean” , “Care”, and “Ready”.

Regardless of the circumstances, La-fooco is always determined to apply the quality improvement program follow-ing the Kaizen-5S model. The program contributes to maintaining efficiency, increasing productivity and reducing costs. Thanks to constant efforts along with the ability to control input costs, the company has managed to reduce pro-

5S TODAY,

SAVE MONEY TOMORROW,

SECURE THE FUTURE

Author: Nguyen Thuy Xuan Thuy

Team: Logistic 03READY FOR 5S, FIGHTING FATIGUE Author: Nguyen Thi To Nguyen

Team: Accounting 02

THOROUGH 5S, EASY KAIZENLAFOCOO IS READY, NOTHING IS IMPOSSIBLE Author: Huynh Thi Tuyet MaiTeam: Accounting 01

KAIZEN 5S STARTS NOW

LET’S WIN THIS FIGHT

TOGETHER

Author: Tran Thi Hong Hoa

Team: QC 05

LET’S IMPROVE TODAY. NO NEED TO FIND.GRASP ANY OPPORTUNITY WHEN WE SEE IT Author: Doan Thi Kim ThuongTeam: Core Splitting 04

duction costs and stabilized selling pric-es of products. For that reason, profit in Q3 of 2021 increased significantly compared to the same period last year. Within the framework of the Kaizen-5S celebration day, the company launched a contest to create a slogan to promote creativity in production activities.

TO PROMOTE KAIZEN-5SSlogan contest

KAIZEN is a Japanese philosophy, comprising of the word (“kai”) which means “change” and the word (“zen”) which means better, meaning “change for the better” or “continuous improvement”. Kaizen philosophy believes that human creativity is unlimited. Applying Kaizen in the workplace means continuous improvement of everyone – from the leaders to every employee. Every member is encouraged to make even the smallest improvements in work to increase work efficiency and reduce operating costs.

T hol Chnam Thmay, along with Ok-Om-Bok and Sene DoHa are the 3 most important annual celebrations of Khmer people in

Southern provinces. In Khmer, Chol means “go in” and Chnam Thmay means “the new year”.

Chol Chnam Thmay is the New Year of Khmer people, similar to the Lunar New Year of Kinh people. Sao Ta has 3,200 workers, 50% of which are ethnic minorities. That’s why Chol Chnam Thmay is also a big celebration for the company.

Throughout the years, Khmer people’s customs to celebrate the new year have been altered to be more suitable for modern life. However, the main rituals are still maintained. During the new year, Khmer families clean and redecorate their houses, prepare food and drink, wear new clothes, and visit one another to give new year greetings.

Aside from the three main festivals mentioned above, Khmer people in South

CELEBRATION OFTHE KHMER

Vietnam also celebrate common festivals like Lunar New Year and Mid-Autumn like everyone else. However, Khmer people still try their best to preserve their traditional festivals and customs while adapting them to the modern lifestyle.

New YearNew YearTH

E


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Q3 | 2021

B E N T R E :

Ben Tre is the “capital” of Southern amateur music (or Don Ca Tai Tu) - a UNESCO intangible cultural heritage.

Don Ca Tai Tu is a unique art form and feature of Ben Tre culture. This is a genre of chamber music originating from Hue royal court music. Don Ca Tai Tu came to life towards the end of the 19th century and it was performed mainly by people in rural areas after a hard working day.

Appearing more than 100 years ago, Don Ca Tai Tu is performed by a band of instrumentalists consisting of dan tranh (zither), dan nguyet (moon lute), dan nhi (two-chord fiddle) & dan bau (monochord).

In the modern and modified version, the monochord is replaced by a guitar. In Ben Tre, the singers are usually friends or relatives. They gather together to enjoy some fun times so there are no requirements for costumes. Through Don Ca Tai Tu, people in the West could have a moment of relaxation and gain more

motivation to complete the hard work.

Today, the Ben Tre amateur music movement has grown stronger not only in tourist areas but there are also clubs in each hamlet with regular activities. The combination of Don Ca Tai Tu and garden cuisine is attracting a lot of tourists, especially foreigners. They come to Ben Tre not only to explore the scenery of the Mekong Delta, to drink coconut water and eat tropical fruits, but also to listen to the beautiful melodies of Don Ca Tai Tu while relaxing on the hammocks.

The Capital of SouthernAmateur Music

ragon Boat Festival is a unique annual celebration of fisher-men in Ca Na (Ninh Thuan).

Held on the 3rd day of the Lunar New Year, the festival is a lifelong tradition that is still maintained nowadays.

To prepare for the race, since early morning on the 3rd of the Lunar New Year, the Organizing Committee plants buoys to locate the lane of each team. By early afternoon, thousands of local residents and tourists will gather along the embankment to watch the open-ing ceremony before the race officially starts. After the ceremony, the captains of each team draw lots to choose the starting positions.

There are usually 4 teams competing in the race. Each team has a total of 25 members, including 22 rowers, 2 cheerleaders, and 1 person who is re-sponsible for scooping water out of the boat. The teams compete in 4 rounds of race. Rowers and usually young men with good skills and strength. When the drum signals the start of the race, each team gets into position and starts rowing from the west to the east of the lake with a length of 500m. They then turn left and return to the start-ing point. Watching the teams compete fiercely, the spectators cheer along with great enthusiasm, creating a very lively atmosphere.

The Dragon Boat festival is carefully organized to showcase and promote the traditional cultural value of people in the sea town. The festival symbolizes people’s wishes for peaceful weather, a successful harvest season, and pros-perous and happy life. This is also an opportunity to strengthen the solidar-ity of people in the neighborhood. It’s also a golden opportunity to promote tourism and develop the local marine economy.

DRAGON BOAT FESTIVAL IN CA NA


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15th floor, ICON4 building, 243A De La Thanh, Dong Da District, Hanoi, Vietnam

Documents

PAN Insight Q3.2021