One shareholder, not a big one, is very willing to remind me that 2020 there are two major sporting events in the world, maybe a business opportunity. That guy, not involved, but very nice with an entrepreneur's view, always pays attention to opportunities to rise. I owe him a sincere thanks.
He must be careful about the market share of my company, strong in the EU and Japan. The two events he mentioned are two major sports festivals, the Olympics in Japan and the Euro football final. The festival attracts visitors, increasing consumption. But food is eaten every day. Shrimp is a nutritious food, delicious, but also more popular. Of course I keep this in the log to have the opportunity to exchange buying partners to evaluate how much contract growth is, so that there is preparation for synchronization.
Business opportunities are multifaceted. Must pay attention, see thoroughly to find, utilize, go ahead. That opportunity could be as public as the two events mentioned above, or it could be innocuous news like the storm of the century that will pass through Leizhou (China) or the heavy flooding of coastal India. . It's a good, think-through business opportunity! Because the storm and flood passed through the major shrimp farming areas of the world, only devastation, damage only, supply decreased, prices will increase, sign the contract quickly! The Vietnamese shrimp business community was once in misery, even the beginning of bankruptcy after that, because it could not find a business opportunity from the same content mentioned above.
In 2009, the BP rig incident spilled Gulf of Mexico oil, causing the death of seafood and birds. Consumers are concerned about eating seafood caught here because of oil residues. Meanwhile, Vietnamese shrimp factories are stocking up on large shrimp due to the aftermath of the 2007-2008 global financial crisis, consumers tighten their belts and eat small shrimp to reduce spending. The Gulf of Mexico is a large brown shrimp warehouse for the United States. Now losing resources, they go to find large-sized shrimp in Vietnam. Vietnamese shrimp businessmen like to catch gold when they sell all large shrimp inventories, HLSO BT 13/15, although the price is very low, and quickly sign more contracts because they think they are lucky. Big idea met together.
All trapped shrimp importers from the United States. Because everyone is full of contracts of this size, must compete to buy shrimp, but this size is limited. Because of delivery pressure, the purchase price must be increased. If there is an increase in the purchase price, the output will not increase because every factory has demand and is willing to increase prices. No one has yet counted through that incident how much damage the Vietnamese shrimp factories have suffered and how many factories have closed because of that incident. Raising the unhappy story above is a good one, but it is an illustration of the lack of professionalism of a Vietnamese shrimp businessman. Lack of information for each other, lack of links, and lack of sense to follow the world situation to identify business opportunities for themselves. But surely then, this traumatic experience was brought into the mind to exist and develop as it is now.
As mentioned above, business opportunities are very rich and complex. Finding out can be very easy, maybe by accident, but most of the time it's good to brainstorm. It is very easy to find out that EVFTA is about to sign, maybe next year the shrimp tax in the EU will no longer exist, the market share here will be wide. By chance, for example through negotiation, a large number of partners demanded a large supply of small size, leading to the synthesis of the consumer tendency to switch to the consumption of small shrimp or the market lacks this size.
The reason is not in a hurry to find out, but certainly the factory calculates for its shrimp farming area to change the farming process. Will drop thicker shrimp and harvest smaller, easy to sell shrimp! Brainstorming is about gathering information, synthesizing, analyzing and drawing conclusions. That conclusion is a business opportunity. I take the liberty to write here an illustration. Sao Ta Company operated in early 1996, had a small shrimp processing factory with fixed capital of 19 billion VND. Working capital must borrow. At the end of 1997, Sao Ta borrowed money from the bank to build another agricultural product processing factory. But also from the middle of late 1997, there were many Japanese tourists looking to the West. At that time, most of the factories made block shrimp, only Kim Anh did stretch shrimp.
Since 1994, the Ministry of Fisheries has implemented a program to improve production conditions in aquatic plants. But the Japanese delegations were quite disappointed because the factory situation at that time was too poor. There are even factories that do not have a toilet for guests to give their soul! The flow of Japanese visitors to Vietnam because at that time the Indonesian side was chaotic, they bought processed goods there for a long time, but now they are not assured because of the instability of the society. Realizing a great business opportunity, in order to take advantage of the opportunities, Sao Ta, although a state-owned, decided to ask the bank to re-file, which is to build a factory for refined aquatic products instead of agricultural products.
Thank you very much for the dynamism of BIDV at that time. Sao Ta has committed to Japanese customers that will complete the shrimp refining factory in half a year, on the basis of renovating unfinished agricultural factories. The popular freezer at that time was the contact freezer, not suitable for freezing products stored by trays. Sao Ta ran to find out about the places and support from Japanese customers. Damn it, the cat was blind to fried fish, a supplier in Saigon that was manufacturing the second one, and by order. That was the newest VN. Waiting in line, chances are late. In the end, the good owner of the facility handed over the equipment to Sao Ta and took advantage of the contract to make up for it.
Sao Moi made the road leading to the workshop when the rain came and has not passed the design. But all because of opportunity. At the end of the third quarter of 1998, the stretching shrimp and powdered shrimp factory came into operation under the guidance of Japanese technicians. Orders do not tighten. Payback in half a year. That year Sao Ta led the country's seafood export turnover and market share in Japan was over 80%. Sao Ta has taken advantage of business opportunities, while many colleagues are concerned about legal procedures and risks, so they do not dare to borrow money to upgrade factories. Why do I write down this experience? for it is the foundation for Sao Ta to continue to rise.
I mean, a moment to take advantage of in time can become a force, a platform to maintain a fairly steady pace of development for the long term. In general, good business opportunities are the foundation for growth, even disruption. Business opportunities come at any time, but want to identify it needs intentional heads, sharp, know how to treat sand to find gold. In this time of fierce competition, finding business opportunities is essential for business people. Everything, even though it seems simple, can be a business opportunity, if exploited at the right time. Even a colleague that I am struggling with is a business opportunity. Clients of colleagues are "helpless", whoever quickly "shares" first will benefit! This may not sound like great, but it really is!
In short, this era takes all business opportunities seriously. To do so, Vietnamese shrimp businessmen have to work harder. Must be knowledgeable in many fields, from raising, processing, and exploiting; from developments in consumption markets; from developments in consumer trends; The problems are not only the economic field but also the fields of finance, politics, society ... All over the world! Who says it is good to be a director, who says that processors have a lot of profit is forcing the prices of shrimp farmers. Director is a lot of hard work as analyzed above. And the profit is a significant part of how many neurons go away mixed with sweat, fatigue in the process of combing the Vietnamese shrimp to the right place.
Dr. Ho Quoc Luc - Former Chairman of VASEP, Chairman of the Board of Directors of FIMEX VN