IDI Corporation: Early success for a rookie fish producer

Impressive growth

The International Development and Investment Corporation (IDI Corporation) was established by the An Giang–based parent company – Sao Mai Construction Corporation. It went into operation as early as April 2008 with initial capital of VND29 billion.

IDI's CEO Nguyen Van San

Although IDI’s business scopes vary from aquaculture, processing to real estates, construction, and package manufacturing, Pangasius processing is the key activity, accounting for about 70% of the company’s turnover.

Less than four years since its establishment, the company has risen to the seventh largest Pangasius exporters in Viet Nam. The fish fillet – IDI’s staple product – brought the company over US$50 million last year, up from US$32 million in 2009.

The company’s chartered capital has also increased by ten-fold to VND380 billion (US$19 million).

Its long-term strategy is to provide high quality products to consumers by investing in an integrated production chain and maintaining a strong focus on the core value.

At present, the Dong Thap-based company has a frozen fish processing factory with designed capacity of 600 MT of raw materials per day. The factory, which has not been used to the fullest, is equipped with the most state-of-the-art machinery imported from Japan, the US and Europe and adopts various food safety and environmental standards such as ISO 9001:2000, BRC, IFS, HACCP, and ISO 14001:2004.

Apart from that, it is empowered by a 4,600 MT cold store and a fishmeal-fish oil plant that process 400 MT of raw materials a day.

The products of these plants are being shipped to 80 buyers in 65 countries and territories in EU, Central America, Middle East, and ASEAN.

IDI is also speeding up the construction of the biggest cooking oil refinery in Asia with daily output of 100 MT and a 120,000 MT aqua-feed plant. Such plants, upon their inauguration in mid 2012, are expected to bring in VND180-200 billion more for the company.

The company believes that being independent in raw material supply is crucial to the sound and stable performance of its production chain. It built a 20 ha GlobalG.A.P-based farming area early on to self-supply 40% of its raw fish demand. The remainder is secured through the contracts with 55 fish growing households, who get the company’s financial supports and sales guarantee.

“Although we are wet behind ears, we are empowered by a team of versatile and experienced executives as well as a large pool of skilled workers, who help us grow and find sustainable success,” said Nguyen Van San, CEO of IDI.

According to San, in early August 2011, the US Department of Commerce determined to impose 0% anti-dumping margins on IDI’s fish fillet products. It would be a good chance for the company to boost its sales in this market.

On June 30, 2011, IDI listed 38 million ordinary shares on Ho Chi Minh Stock Exchange (HOSE). The move demonstrates the company’s commitment to accountability and transparency for the benefit of its investors and partners.

Social responsibility

IDI has more or less 200 competent staff with university degrees and nearly 1,500 well-trained workers.

It set up a ‘flat rate’ pay system, which pays the workers based on their performance. An average worker of the company earns between VND3.5 million – 6 million per month, quite high compared to the usual wages.

The company also maintains recognition and reward programs to keep the workers motivated. It provides them with insurance cover, regular health-check, annual subsidized vacations and accommodation.

“I have worked for the company since its establishment. I’m totally satisfied and feel entirely self-confident here. It’s like my second home,” said Nhieu, a lady worker in the parasite checking group.

Besides the employee welfare, IDI also pays attention to social networking. It takes out some profit to donate to natural disaster victims, poor people, and study promotion programs. Each year, it builds 10-12 charity houses for the disadvantaged in the province.

“Social responsibility is out first and foremost priority. It is a way to express our gratefulness to our hometown and people,” said San

To brave the storm

The credit crunch and economic slump are taking toll on many enterprises. However, with the support of Sao Mai Cons. Corp as well as its own reputation, IDI is confident that it will able stand firm on its feed.

San said IDI is putting its mind on the two main tasks for the time being. First, it will further invest in the more downstream part of the production chain, i.e. juveniles, farms (GlobalG.A.P and BAP based), fish meal, collagen, and fish oil. Workers will be trained and educated to bring a new wind to the working environment.

The company also set its eyes on the real estate market, with various projects up and running such as the 24 ha new urban area south of Lap Vo town with total investment of VND147.38 billion, the 17.2 ha trading centre of Lap Vo district, and the 50 ha resident area in Cao Lanh city.

Besides, it is reaching out to other businesses, including rice export, rice bran oil extraction, and rice husk pellet production. The goal is to made full use of the available raw materials and recycled fuel while reducing the production cost and protecting the environment.

In December 2012, all the items of the VND1,500 billion Vam Cong seaport and industrial cluster complex will be completed. IDI is expected to earn VND6,500 billion of revenue and over VND600 billion of after-tax profit from this largest-ever project while creating employment for over 8,000 people.

   By Truong Ngo Bich Ngoc

Compiled by Thanh Phuong