Dong Giao Food Export Joint Stock Company: Closed production, enhancing the value of Vietnamese agricultural products

Established in 1955 with the original name of Dong Giao State Farm, after nearly 70 years of construction and development, Dong Giao Food Export Joint Stock Company (CPTPXK) continues to affirm the DOVECO brand in the domestic and international markets, operating in a closed chain from production to processing and consumption of products, constantly enhancing the value of Vietnamese agricultural products.

Pineapple raw material area serving production for DOVECO Ninh Binh Factory in Tam Diep city.

Mr. Dinh Gia Nghia, Deputy General Director of Dong Giao Export Food Joint Stock Company said: In recent years, to become the leading supplier of agricultural products and processing in Vietnam, penetrating deeply into the markets of many countries such as the EU, USA, Japan, etc., Dong Giao Export Food Joint Stock Company (DOVECO) has promoted organizational restructuring, innovated business models, operated in a closed model, promoted digital transformation, improved labor productivity, product quality, etc.

Currently, the Company has built a closed production model according to the value chain, from agricultural production, processing and exporting vegetables and fruits with modern production lines that meet international standards. For agricultural production, the Company has formed and managed 4 main raw material areas in many provinces and cities across the country. For example, in Ninh Binh, the Company is managing and directing the production of nearly 4,000 hectares of land for growing pineapples and crops such as passion fruit, soybeans, sweet corn in Tam Diep city and Nho Quan district.

Raw material areas in the Red River Delta and North Central Coast have been concentrated in the provinces of Bac Giang , Hai Duong, Thai Binh, Thanh Hoa, Nghe An, Ha Tinh, with a total area of 4,500 hectares, including the main raw material crops: Lychee, sweet corn, spinach, and soybeans.

For the raw material area in the Northwest, developed in the provinces of Son La, Lai Chau, Hoa Binh, Dien Bien, with a total area of 8,500 hectares; the main raw materials include: sweet corn, mango, longan, pineapple, passion fruit.

The raw material area in the Central Highlands has been developed in Gia Lai, Dak Nong, Dak Lak, with a total area of 8,500 hectares. The main raw materials include: passion fruit, Cayen and MD2 pineapple, sweet corn, baby corn, and pink banana. In addition, the Company also cooperates with more than 315 cooperatives and traders nationwide.

In the agricultural production process, the Company applies organic and high-tech technologies, such as using drip irrigation systems, plastic film, organic fertilizers and microbial fertilizers. The vegetables produced meet the high demands of developed countries right from the field.

In industrial production, the Company is also the leading exporter of fruits and vegetables in the country to the EU market. The total capacity of processing fruits and vegetables currently reaches 136,000 tons of products/year. The Company currently owns 3 most modern fruit and vegetable processing centers, including: DOVECO Ninh Binh Factory, capacity of 32,000 tons of products/year; DOVECO Gia Lai Factory, capacity of 52,000 tons of products/year and DOVECO Son La Factory, capacity of 52,000 tons of products/year.

At 3 processing centers, the Company invests in modern, automatic machinery systems up to 90% imported from Japan, Germany, the US and G7 countries, meeting large production capacity, ensuring product quality, especially industrial waste. The company's processed products are diverse, including: IQF, BQF, Concentrate, Puree, canned. Typical products, favored by domestic and foreign customers such as: Pineapple concentrate, pineapple puree, passion fruit concentrate, passion fruit puree, lychee puree, frozen passion fruit pulp, frozen lychee, frozen spinach, frozen vegetable soybeans, canned sweet corn, canned pineapple...

According to Mr. Dinh Gia Nghia, Deputy General Director of Dong Giao Export Processing Joint Stock Company, since converting from a State-owned enterprise to a Joint Stock Company, the Company has invested in building modern fruit and vegetable processing centers with equipment and technology from Italy, Germany, Japan, along with a team of highly skilled workers and engineers, who have received basic training and in-depth expertise.

Since then, DOVECO has built an independent and autonomous business mechanism, capable of adapting to fluctuations in domestic and international markets, contributing to the modernization of the national economy, promoting growth and enhancing the competitiveness of Vietnamese agricultural products.

Export revenue is constantly increasing. In 2023, the company's revenue will reach 3,000 billion VND; of which, export turnover accounts for 80%. The company's export turnover in 2023 will reach 169% compared to 2022. Export turnover in the first 6 months of 2024 is estimated at 1,500 billion VND, an increase of 38% over the same period in 2023.

Currently, DOVECO products are present in more than 50 countries and territories around the world. This is the result of the strategy of "bringing Vietnamese agricultural products to the world market", helping DOVECO become a leading brand in the field of production and export of fruits and vegetables to international markets. At the same time, the Company is still interested in promoting domestic sales, gradually expanding the market.

Domestic sales in 2023 increased by 12% compared to 2022. Domestic sales in the first 6 months of 2024 reached 320 billion VND, an increase of 15% over the same period in 2023. Key products sold domestically include: 330ml canned fruit juice (pineapple juice, passion fruit juice, orange juice, lychee juice, mango juice, peach juice, banana juice); Canned sweet corn (corn kernels, crushed corn); concentrated and cold products in small bags of 0.5 or 1 kg. Particularly for sweet corn products, Dong Giao Food Export Joint Stock Company's products account for more than 70% of the market share from Da Nang and beyond.

In 2023, DOVECO products will be present in 53 provinces and cities nationwide. Along with promoting production and business, fulfilling obligations to the State, Dong Giao Food Export Joint Stock Company also pays great attention to ensuring the lives, income sources, and improving professional qualifications for officers, employees, and workers. The company signs labor contracts directly with workers and at the same time cooperates with local labor sources.

By the end of 2023, the total number of employees managed and cooperated by the Company is more than 31,300, including nearly 300 highly qualified engineers specializing in processing, food machinery, crops, plant protection, etc. Notably, among the nearly 4,000 employees directly managed and paid by the Company, the proportion of ethnic minorities at DOVECO Ninh Binh Branch accounts for 5%, DOVECO Gia Lai Branch accounts for 60% and DOVECO Son La Branch accounts for 80%. The average salary of the Company's employees is from 8-10 million VND/person/month.

Ms. Le Thi Bich Thuy, a worker at DOVECO Ninh Binh Factory, said: I have been working at Tam Diep Factory for more than 20 years. Here, the salary, bonus, health care, toxic, social insurance, health insurance, unemployment insurance are fully implemented in accordance with regulations. Currently, my income is 15 million VND/person/month. My husband also works at the Company with a salary of nearly 20 million VND/month. Thanks to this salary, my husband and I have built a solid, spacious house, purchased amenities for life, have good means of transportation, especially raising our children to finish university and college, now all have stable jobs. The workers' lives are stable, the working environment is good, we feel secure in our work and are determined to stick with and contribute to the sustainable development of the Company...

Through 69 years of construction and development, Dong Giao Food Export Joint Stock Company has affirmed its ability to deeply integrate into the international economy, becoming the leading company in providing the most prestigious canned food in Vietnam, maintaining its position in the "Club of enterprises with revenue of thousands of billions of VND"...

In the coming time, in the development strategy, the Company will promote the application of science and technology in production, pay attention to researching new crop varieties with high value in terms of productivity, quality, suitable for soil and climate of regions. Continue to plan raw material areas in accordance with the development goals of the enterprise and the orientation of the locality. At the same time, continue to expand the scale of production and processing in a closed, modern direction... Pay more attention to the material and spiritual life of workers, well implement Uncle Ho's advice when visiting Dong Giao State Farm on July 20, 1960, including the sentence: ".... Farm workers try to work hard to build Dong Giao into a rich farm, producing many export products for the State...".

Article and photos: Hanh Chi