Ben Tre Coconut Investment Joint Stock Company (Vietnam)

Being founded in 2015 in Ben Tre Province, the coconut capital of Vietnam, the subject only focused on trading coconut fiber and coconut matting. Then, its business lines have been expanded to manufacturing coconut products like coconut cream, coconut milk, coconut oil, desiccated coconut, coconut drinks... The machines, flavors, cans for production are imported from Thailand, Singapore, China, the Philippines, etc. Raw coconut for production is purchased from Ben Tre Province which concentrates on many areas for planting coconuts so the subject has more advantages for its developing business.  Above 90% of output are exported to 44 countries worldwide, as revealed.The subject's production premises and facilities are remarkable with two factories. Starting construction in Apr 2017 on a total area of 5,000 sqm, the first production line of the first factory was put into production one year later. The production activities have taken place in parallel with the construction, then, production lines 2, 3, 4, 5 and 6 of the first factory started operating in 2019, 2020, 2021 and 2022, respectively. Currently, the subject has two factories. The second factory is located on a total area of 3,000 sqm with two production lines, which were put into production in late 2022 and, early 2023 respectively. As a result, its production capacity improved continuously in recent years. Accordingly, along with expanding export markets, despite being negatively affected by the fourth outbreak of the Covid-19 pandemic in Vietnam, the subject's annual net revenue kept increasing with a compound annual growth rate of 77.6% during the period of 2018-2022, reaching the peak of VND 656.5 billion last year. Especially, according to the subject's sales department, thanks to receiving noteworthy orders from foreign clients, the company generated about VND 200 billion of revenue in the first quarter of 2023, equaling about 30% of the volume in the whole year 2022.However, as a revelation from the sales department, the post-Covid economic recession had seriously negative effects on the subject's business and values of export orders received in the second quarter and the third quarter of 2023 dropped suddenly by 70% and 80% compared to the volume of the first quarter respectively so the subject had to apply a rotating leave policy for its workers in order to cut down the costs while its factories just operated with around 30% of design production capacity. Anyway, the company has just won the bidding contract worth nearly USD 6 million for supplying coconut products to the LIDL supermarket system in the EU, which is one of the ten biggest supermarket chains in the world currently. Therefore, its factories have operated with around 70% to 80% of design production capacity and all labors have worked normally since Sep 2023. Hence, its target net revenue in the whole year 2023 is about VND 450 billion, down by over 30% compared to the peak last year, as disclosed.