Export tycoons and the plight of goods affected by war.

Mr. Phan Minh Thong - Chairman of the Board of Directors of Phuc Sinh Joint Stock Company - recounts the heart-stopping moments when exported agricultural products encountered wartime conditions - Photo: QUANG DINH

Behind the story of hundreds of millions of dollars in revenue and enduring success, Mr. Thong for the first time shared the hardships faced by export businesses after more than 20 years in the international market.

Heart-stopping moment as 100 shipping containers encounter... a missile while en route.

Over the past two years, Phuc Sinh Joint Stock Company has faced numerous tense situations when loading goods onto ships and leaving the port. Navigating to protect the cargo has been a nerve-wracking and heart-stopping experience for the company.

In 2022, while 100 containers of pepper were en route to St. Petersburg and the port city of Odessa (Russia), Ukraine fired missiles at the city.

Phuc Sinh and its customers were all surprised because no one was prepared. Shipping lines to Russia had stopped, and Ukraine was facing financial difficulties. 90% of customers said they would either withdraw their goods or find other buyers.

"It was a matter of life and death," the company held a meeting and decided to halt the shipment at the transshipment port, while simultaneously contacting potential buyers in Switzerland, Germany, Spain, and other countries. After a week of frantic work, 100 containers were sold and all payments were collected.

What seemed like just a one-time scare turned into a reality in October 2023, when the company spent 30,000 euros to attend Europe's largest food and beverage trade fair in Kohn, Germany.

While attending the event, news broke that conflict had broken out between Israel and Hamas, completely disrupting plans to sell goods to customers at the fair. Customers from Israel and Palestine were worried about the risks of coming here. One customer said a bomb exploded just 20 meters from their warehouse and they were reluctant to do business.

With a major "disaster" striking for the second time, businesses must find a way to sell their products while ensuring customer safety.

Other challenges in 2024 include the dramatic increase in raw material prices, the difficulty of running a business, the need to constantly change strategies, find alternative sources of supply, and seek new markets… from Europe, through the US and the Middle East, Asia…

Phuc Sinh Joint Stock Company is among Vietnam's top exporters of pepper to the European market - Photo: QUANG DINH

The extreme difficulties are forcing businesses to think in a new way.

Selling to international markets presents numerous challenges; it requires a new mindset and double the effort to acquire a large customer base.

This proposition and its outcome apply to Phuc Sinh's coffee business story. Driven by a love for coffee and a desire to explore new growing regions, the Son La Arabica coffee factory was established with a considerable investment. However, the business encountered a major problem: nobody was buying!

While dozens of containers of Robusta coffee sell easily, Arabica coffee is much more difficult to sell because it belongs to a different segment, where buyers are more selective and consider their options carefully. Unable to sell their goods, businesses feel isolated and stuck, like hitting a wall everywhere they go. Only after overcoming this wall do they have to find their own solutions to find a way out and grow.

We spent many hours figuring out how to make Phuc Sinh known to more purchasing companies around the world , and the key lay in the sustainable ESG development that the business had built over the past six years. A bustling and fortunate Arabica coffee trading season began in the middle of last year.

From there, the company enjoyed favorable conditions, securing funding from two Dutch funds totaling $25 million and €575,000. This successful fundraising during a challenging global economic period for the agricultural company served as a source of inspiration for Vietnam's agricultural sector.

Businesses need tax refunds to boost production and exports.

The export sector is facing numerous difficulties, with declining supply leading to soaring and constantly fluctuating commodity prices. Supply chains are also continuously struggling, with rising transportation costs, not to mention other trade barriers.

In this context, export businesses have made tremendous efforts to remain stable, continuing to create outlets for various industries and provide jobs for workers.

Business inputs are all subject to VAT. Exports, however, have zero VAT, so businesses need to be eligible for a VAT refund. Without a refund, businesses will face a chain reaction of problems affecting production, sales, and exports.

While businesses that are late in paying taxes are fined 0.05% per day, the amount of tax refunds is substantial, yet businesses receive no support for 7-8 months to a year. Businesses are requesting that tax authorities actively process tax refunds to boost production and exports.

PHAN MINH THONG
(Chairman of the Board of Directors of Phuc Sinh Joint Stock Company)

Source: https://tuoitre.vn/ong-trum-xuat-khau-va-noi-kho-hang-gap-chien-tranh-20241012192042698.htm