Orion Food Vina Co., Ltd (Vietnam)

The subject specializes in manufacturing and trading confectionery products. Its famous products include Orion Chocopie, Custas Sponge, Goute' Biscuit, O'Star & Toonies Snack, Tok Baked Potato Cracker, C'est Bon, etc. Besides the domestic market, the company's products are also exported to many countries such as Asian countries (South Korea, Cambodia, Thailand, Singapore...), Dubai, etc.To produce larger quantities, and be proactive about the source of raw materials, along with imported potatoes, the company established O'star Farm in Vietnam, specializing in supplying raw fresh potatoes to produce O'star potato snacks. Besides, the company also signed contracts for a stable supply of raw materials for potatoes and chicken eggs with some local businesses and supported the raw material areas for agricultural machines, seed technology transfer, etc. In 2022, Orion Food Vina registered for the beverage manufacturing industry and launched the Jeju Lava Seawater beverage brand. In 2023, Orion launched two special milk products 'Choco IQ' and 'ProYo!', which mark the transformation into a food business and orients the subject to become a food business, bringing quality products that are especially good for consumers' health.According to statistics from market research company Nielsen, as of December 2022, Orion is the largest confectionery manufacturer in Vietnam with Chocopie accounting for 66% of the market share. Orion Food Vina was established in 2005, and for the first time exceeded sales of USD 100 million in 2011. 10 years later, the company's sales increased more than 3 times, reaching more than USD 340 million. In the list of 1,000 largest tax-paying companies in 2021, Orion Food Vina is ranked 139th - belonging to a group of Korean businesses with impressive business results in the Vietnamese market alongside businesses in fields such as electricity, food, textiles... Compared to other leading domestic confectionery enterprises, Orion is keeping quite a distance. Currently, Bibica or Hai Ha, two large Vietnamese domestic confectionery companies, only have revenue of VND 1,102 billion and VND 1,002 billion respectively in 2021. In 2022, these businesses recorded increased profits but most of them come from other profits, while the main business had times of loss. Currently, in addition to KIDO, which has a distribution channel of up to 450,000 points of sale, the remaining groups such as Bibica and Hai Ha, each business only has more than 130,000 distribution points covering all provinces and cities, of which, the majority part of it is small traditional channels. According to Mr. Park Se Yeol - General Director of Orion Food Vina, the company's success is thanks to the following reasons. Firstly, with the group's support in terms of capital and market research activities, this company has increasing advantages in its product line localization strategy and human resource management in Vietnam. Next, the policy does not increase product prices. Thirdly, the company also chose to orient itself as a Vietnamese company. Of about 4,000 employees, they only have more than 20 Korean employees. Core positions in the enterprise's departments are mainly held by Vietnamese people.