Mr. Dang Hong Tuan - Member of the Board of Directors of Vietnam Coffee Corporation (Vinacafe) said that in 2024, Vinacafe's total production and business output will reach 80,495 tons. Financial targets in 2024 will all exceed those in 2023 and profit is estimated to grow by 24% over the same period.
Five corporations and general companies arranged by the State Capital Management Committee at Enterprises will be handed over to the Ministry of Agriculture and Rural Development , including: Vietnam Rubber Industry Group (VRG), Southern Food Corporation (Vinafood 2), Northern Food Corporation (Vinafood 1), Vietnam Forestry Corporation (Vinafor) and Vietnam Coffee Corporation (Vinacafe).
How was the business situation of these 5 enterprises before they were assigned to the specialized Ministry for management? Dan Viet would like to "name" each enterprise.
Lesson 2: Vinacafe continues to maintain profitable production and business results
In 2024, Vietnam Coffee Corporation (Vinacafe) continued to maintain profitable production and business results of 2023 after many consecutive years of losses, with consolidated revenue estimated at VND 2,252 trillion, equal to 104% of the annual plan and 103% over the same period last year.
Vinacafe - All financial targets for 2024 are exceeded, estimated profit growth of 24%
In 2024, Vinacafe will carry out production and business tasks in the context of high coffee prices, bringing great opportunities for the coffee industry in general and the Corporation in particular.
However, in addition to the advantage of high coffee prices, in 2024, due to the impact of climate change, the Central Highlands region will experience a prolonged period of hot weather, increasing irrigation costs, especially in Gia Lai and Kon Tum provinces, which will lack irrigation water, affecting the growth and development of crops, especially coffee gardens in the basic construction stage.
Regarding the production and business situation in 2024, Vinacafe continued to maintain profitable production and business results in 2023 after many consecutive years of losses, with consolidated revenue estimated at VND 2,252 trillion, equal to 104% of the annual plan and 103% compared to the same period last year.
Mr. Dang Hong Tuan - Member of the Board of Directors of Vietnam Coffee Corporation (Vinacafe) said that in 2024, Vinacafe's total production and business output will reach 80,495 tons. Financial targets in 2024 will all exceed those in 2023, Vinacafe will continue to operate effectively and its estimated profit will grow by 24% over the same period.
Mr. Dang Hong Tuan - Member of the Board of Members, General Director of Vietnam Coffee Corporation (Vinacafe).
Regarding the restructuring project of Vinacafe until the end of 2025, from the beginning of 2024, Vinacafe has seriously implemented it, and has basically completed the set goals. In 2024, the Corporation has promoted commercial activities, improved the Vinacafe brand and the new brand identity "VIETNAMCOFFEE", launched new products under the brand "VIETNAMCOFFEE" to the market. At the same time, registered intellectual property for the brand "VIETNAMCOFFEE" in 50 countries, including major countries such as the US, Korea, Japan, Australia and China. Vinacafe consumed 525 tons of deeply processed coffee (instant coffee and roasted coffee) this year.
This shows that sustainable development and correct orientation, along with flexible strategic direction, have helped Vinacafe gradually regain its position in the market. This is also an important change compared to the previous export of only green coffee beans, contributing to enhancing the value of Vinacafe's Vietnamese coffee brand in the international market.
Regarding human resources, Vinacafe is in the process of perfecting its leadership. In early 2024, the Corporation was appointed and supplemented with a Member in charge of the Board of Members. In September 2024, the Corporation also added a Deputy General Director position. These results not only contribute to improving the effectiveness of management but also create favorable conditions for the leadership and sustainable development of Vinacafe in the coming time.
Price increases, coffee exports exceed 5 billion USD, can Vinacafe take advantage of this great opportunity?
Up to now, Vinacafe's main business lines are planting, producing, trading, importing and exporting coffee, pepper, cashew, rubber, food, agricultural products and other industrial crops; processing industry includes: Coffee, tea, rubber, cocoa, pepper, cashew, sugar, molasses, agricultural products, food.
Vinacafe's production capacity, as reported by the beginning of this year, includes: 41,000 hectares of agricultural land. Processing capacity: 52,000 tons of coffee beans, 25,000 tons of rice. Vinacafe has 46 member units, including 11 companies/accounting units dependent on the parent company; 27 single-member LLCs owned by the parent company, 3 joint stock companies with controlling shares of the parent company and 5 affiliated joint stock companies; nearly 30,000 workers participating in production, business, farming and processing activities.
Although domestic coffee consumption is increasing, exports remain the main source of income for the Vietnamese coffee industry and Vinacafe. In 2024, coffee prices increased by an average of over 50%, helping Vietnam's coffee export turnover surpass the $5 billion mark for the first time. The increase in coffee prices also helped Vinacafe escape from consecutive years of losses.
The increase in coffee prices also helped Vinacafe escape from consecutive years of losses.
Vinacafe said that 2024 is a special year for the coffee industry and for the first time, Vietnamese coffee prices are the highest in the world. The export price of Robusta coffee is higher than the price of Arabica coffee, which has never happened before.
Since the beginning of the year, Vietnam’s coffee export prices have been increasing continuously. In January, the export coffee price was just over 3,000 USD/ton, and by October it had jumped to 5,855 USD/ton.
Thus, in just 10 months, the price of this item has increased by over 90%. The average export price of coffee in the 11 months of 2024 is estimated at 4,037 USD/ton, an increase of 56.9% over the same period in 2023.
As a result, coffee exports in the first 11 months of 2024 reached nearly 1.2 million tons with a turnover of 4.84 billion USD; although down 15.4% in volume, export value increased 32.8% over the same period in 2023.
However, 2025 - Vinacafe still recognizes - will be a difficult year for the industry and Vinacafe, both in terms of production and business in the context of general difficulties of the economy and the coffee and rice industries worldwide.
Regarding the 2025 production and business plan, Vinacafe plans to strive to continue profitable business and overcome weak business targets and results, and losses left over from previous years.
To achieve the goal, Vinacafe proposed that the State Capital Management Committee at Enterprises, Ministries and branches report to the Prime Minister on specific policies and mechanisms to remove difficulties, obstacles, and resolve financial and land use management problems of the Corporation.
For its part, Vinacafe will consider assigning specific planning targets to each member company; encourage and take measures to intercrop suitable crops during the basic construction period to increase income on cultivated areas.
Vinacafe also proactively seeks partners to cooperate in development and production applying high technology; prioritizes investment in replanting coffee gardens; researches, develops and expands potential markets, stabilizes coffee export business contacts including deep processing and green coffee beans at the parent company.
In December 2024, Vietnam Coffee - Vinacafe's flagship brand, officially exported the first container of deeply processed coffee products, including roasted coffee beans, ground coffee and instant coffee, to the international market. This is a historic milestone, affirming the superior quality and aspirations of the coffee brand with a strong Vietnamese identity.
Vietnam Coffee’s deep-processed coffee products are made from clean, carefully selected coffee beans in the Central Highlands. This export event is not only a commercial activity but also a strategic step, demonstrating Vietnam Coffee’s competitiveness and ability to meet the strict standards of the international market.
Exporting deeply processed products under the Vietnam Coffee brand not only increases economic value, but also affirms Vinacafe's transformation, gradually reducing dependence on raw coffee exports. This is also the result of Vinacafe's efforts to invest in processing technology and strict quality control.
With Vietnam Coffee, Vinacafe aims to expand exports to more than 50 countries and territories, increasing the proportion of deeply processed products in total export revenue.
Will continue to divest and restructure the business
Vietnam National Coffee Corporation (Vinacafe) has just announced its audited financial statements for 2023. On this balance sheet, as of December 31, 2023, Vinacafe's total assets reached VND 2,886 billion, down nearly VND 57 billion compared to the beginning of the year. The Corporation is setting aside a provision for short-term bad debts of VND 428 billion and a provision for long-term bad debts of VND 13 billion. Liabilities are VND 2,414 billion, of which total debt is VND 874 billion. Charter capital as of December 31, 2009: VND 1,150 billion.
It is known that in the situation of equitization, divestment and enterprise restructuring, despite many difficulties and existing through many periods of arrangement and innovation; however, Vinacafe has successfully implemented restructuring at Vinacafe Northern Joint Stock Company and gradually restructured at Da Lat Coffee Import-Export Joint Stock Company.
Vinacafe will continue to strengthen the supervision and comprehensive assessment of finance, results and efficiency of production and business activities, especially the supervision of assets, goods, products, debts, and expenses; accounting for income in accordance with the provisions of law; urgently and resolutely in building and implementing appropriate restructuring plans, improving the operational efficiency of member units. Especially paying attention to debt collection, land management, production organization management; strictly handling cases of lax management of land, orchard management, harvesting and product consumption.
According to Plan 141/KH-BCĐTKNQ18 of the Steering Committee for the Summary of Resolution 18/2017/NQ-TW, 19 State-owned corporations and groups under the State Capital Management Committee (Super Committee) will be re-arranged into specialized ministries.
The Ministry of Agriculture and Rural Development (MARD) manages 5 enterprises: Southern Food Corporation (Vinafood2), Northern Food Corporation (Vinafood1), Vietnam Forestry Corporation (Vinafor), Vietnam Rubber Group (Vietnam Rubber Group), and Vietnam Coffee Corporation (Vinacafe).
Source: https://danviet.vn/suc-khoe-5-tap-doan-tong-cong-ty-nong-nghiep-truoc-khi-ve-lai-bo-sau-5-nam-tong-tai-san-giam-57-ty-dong-20241226220444034.htm
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