CPV positions for global reach

The company’s factories are looking to extend exports further afield

The company (CPV) has set ambitious goals for its factory in the southern province of Binh Phuoc for 2024 and beyond to grow its annual export value to $200 million by expanding its reach to markets such as Asia, Europe, the United States, and Middle East.

“We have a close partnership with the Vietnamese government and have received substantial support in obtaining export licences. We are currently liaising with agencies to secure export licences for South Korea and the United Kingdom, which we anticipate to receive in the third quarter of this year,” said Wirat Wongpornpakdee, senior vice president of New Business and Food Business at CPV.

The pillar to help CPV to be confident to conquer the strict markets is CPV’s closed value chain business model, which signifies these efforts to enhance the production standards of safe and hygienic foods and reflects the company’s understanding of consumer needs, particularly among the younger generation.

Parent company C.P. Group has implemented the closed model in numerous countries, but it views Vietnam as crucial due to the country’s significant potential. The company invested a substantial $250 million in the CPV Food factory in Binh Phuoc, which began operation in late 2020. The investment enables the execution of the closed breeding and production model in Vietnam.

Halal certification was awarded to CPV Food Binh Phuoc in 2022, meaning CPV is now poised to broaden its exports’ horizon to Muslim markets, which comprise approximately 15 per cent of the world’s population. This marks a significant expansion opportunity for the company.

Last year was a landmark one for the Binh Phuoc factory, with export volumes tripling compared to 2021 and exports reaching Japan, Hong Kong, Laos, and Cambodia. Binh Phuoc has set ambitious targets for 2024 and beyond. It plans to increase annual export value to $200 million by penetrating markets such as Europe, the US, and the Middle East.

CPV Binh Phuoc operates an automatic system that can produce 20,000 tonnes of animal feed per month with a minimal workforce of under 40 individuals. The plant employs advanced technology to ensure the products are of the highest quality.

Along with the cultivation of the domestic market, CPV has made significant investments to produce food products that cater to the needs of export markets. “We are extremely proud because we have been able to show the quality of Vietnamese produce to foreign markets. Our partners now carry numerous products labelled, ‘Made in Vietnam’”, Wongpornpakdee said.

CPV’s effort to foster the export markets matches with Vietnam’s direction. In last December, Deputy Prime Minister Tran Luu Quang approved a project to develop the slaughterhouse industry, livestock processing, and product market before 2030.

As per the project, a plan has been developed to ensure that the proportion of cattle and poultry slaughtered in industrial concentrated facilities reaches about 60 and 40 per cent, respectively, by 2025, and about 70 and 50 per cent by 2030.

Vietnam will develop livestock product processing facilities with scale, technology, and management on par with the rest of the world. The project also aims for the export value of livestock products to reach $1.5 billion by 2025 and as much as $4 billion by 2030.

The added value of processed livestock products is expected to grow from the current 2-3 per cent annually to 3.5-4.5 per cent by 2025 and 4.5-5.5 per cent in the 2026-2030 period. The country will develop several livestock product processing facilities with scale, technology, and management which are on par with those in the region and the world.

The Department of Livestock Production under the Ministry of Agriculture and Rural Development said that the export turnover of animal husbandry products in 2023 was estimated to hit $430 million.

To open the path for businesses to foster export, the Department of Animal Health under the ministry has been negotiating to open more markets in Hong Kong, South Korea, the EU, the UK, and Middle Eastern countries. Most recently, the department has been collaborating with Mongolian authorities to complete procedures for the export of poultry meat and eggs.

These practical actions will contribute to helping meat production reach about 7.98 million tonnes in 2024, an on-year increase of 3.8 per cent as the expectation of the livestock sector.

CPV honoured at market stabilisation conference A conference summarising 20 years since the implementation of the market stabilisation programme, with discussion about the scheme's orientation for the next 10 years, took place in Ho Chi Minh City last December.

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CPV eyes $200 million in annual export value C.P. Vietnam (CPV) has set ambitious goals for its factory in Binh Phuoc for 2024 and beyond to grow its annual export value to $200 million by expanding its reach to markets such as Europe, the United States, and Middle East.

CPV promotes 'Made in Vietnam' products at home and globally C.P. Vietnam (CPV) anticipates that consumers will support 'Made in Vietnam' products that meet international standards, affirming the company's commitment to safety and improving the lives of Vietnamese people. In addition, CPV plans to continue developing new products to meet consumer needs for domestic and foreign markets.