With more than 50% of instant coffee market share & exporting to over 20 countries in the world, it is likely to say that Vinacafe is affirming its strong position in the Vietnamese instant coffee market. This is an important and admirable achievement. However, the way made by Vinacafé in the past time partly shows that market share is not the top target of the company but quality and sense of pioneer in protecting customers’ interests.

Prime Minister Nguyen Tan Dung visited the Fair for Vietnam Products in Myanmar, April 2010

In the past two years, the coffee processing market, especially instant coffee, in Vietnam has been growing remarkably. In a short time, there are many new brands appearing in the market, amongst, Vinamilk returned to the market with roasted and instant coffee product named Vinamilk replacing for former Moment brand. Tan Hiep Phat launched Vip canned coffee product, and other companies including Tien Thanh Company with Rock coffee brand, Tran Quang Company with Ice coffee and many other new brands. At the same time, some companies (not in coffee business) such as Ajinomoto also take part into the coffee market with Birdy canned coffee brand, etc. This creates a severe competition in the coffee processing market.
 
The fact that there are many coffee brands in the market is a good sign for Vietnam coffee sector. However, according to Mr. Pham Quang Vu, General Director of Vinacafé Bien Hoa, coffee producers including new comers should put a strong emphasis on producing high quality coffee, limiting & absolutely no using of additives, etc due to harmful affects on consumers’ health. In addition, if the quality is not good, it is difficult for exporting and causing bad affects on Vietnam coffee’s prestige. On purpose of protecting consumers and improving prestige for Vietnam coffee brands, although many enterprises have faced difficulties due to complicated situations of the market in the past time, but Vinacafé has been ceaseless making efforts to improve its product quality. The clear proof for its efforts is that Vinacafe has planned to expand production before the global financial and economic crisis; however, the plan has been delayed due to bad effects of the world’s economic crisis.

 
But it is a good sign that the world’s economic crisis just affected on investment activities but not caused many difficulties for Vinacafe’s business activities. In 2009, Vinacafé achieved a fairly high growth rate compared to previous years, net profit after tax reached 136 billion Dong, EPS reached to more than 9000VND/stock.

According to Mr. Nguyen Thanh Tung, Marketing Manager of Vinacafé Bien Hoa, the top target of enterprises in their business activities is how to maximize their interests. However, it is not simple to get profits in such market conditions in the past time. To get profits, many measures were brought out by enterprises including negative measures such as reducing quality and quantity of products. This is not a way at Vinacafé. Vinacafé always maintains the right quantity and continuously improves quality in accordance with the company’s planned orientation –better improving products- instead of reducing quality and volume of products. In the context that there are continuously extraordinary changes in the market in the past time, even in a time that the oil price get high and the selling price keep unchanged while maintaining quality criteria, Vinacafé have to keep higher selling price than other products. This is a big challenge for Vinacafé. Having known that it would affect on profits if the company did not follow the common trend of the market, but instead of reducing product’s price by reducing quality or volume of products, Vinacafe increased labor and technical productivity to increase capability of recovering capital in production activities (with a fixed material capable of making more finished products).
 

By doing that, Vinacafé has not only contributed to improvement of its prestige, raised high the awareness of protecting consumers’ interests, but also created an important mission of bringing Vietnamese coffee to the world. Keeping prestige and commitment to the consumers helps Vinacafé maintain a stable development even in the most difficult situation. With more than 50% of market share in the instant coffee market, Vinacafé brand is controlling the Vietnamese instant coffee market, leaving behind other famous brands. According to Mr. Pham Quang Vu, in the context of 2009 and 2010, Vinacafé’s biggest goal is not how to increase the market share but reinforce its prestige, bolster consumers’ confidence and its brand by policy of improving product quality. Vinacafé is not proud of its market share but of its quality and consumer protection.
 
With a determination of pursuing quality policy and its commitment of protecting consumers’ interests, Vinacafé’s growth rate is slowing down but this is a firm foundation for a strong development after 2010. Hopefully, the commitment itself will create more conditions and add wings to Vinacafé brand in the coming time. More importantly, the commitment not only brings preeminent products to consumers but also affirms Vinacafe brand in the world market.
 
Vinacafé is promoting its project of improving the factory capacity to 3000 tons of instant coffee per year (4 times higher than current capacity) and focusing on exporting markets. The goal will be strengthened by Vinacafe in the next 3 to 5 years when the factory is fully put into operation.