CP Group: Selling Thai products in Vietnam

Aiming at Vietnam's middle class, CP will invest in every step of food production from farming to food processing, branding & marketing.



Economics
FOOD

CPF to focus on Vietnam's middle class

18/09/2012
Chatrudee Theparat

CP Vietnam Corporation, a unit of the SET-listed Charoen Pokphand Foods Plc (CPF), will beef up expansion into food processing from live animals to cater to demand from that country's growing middle class.

"In the foreseeable future, the group's business here will focus more on food processing and ready-to-eat food, while brands and marketing will become more important in Vietnam," said Sooksunt Jiumjaiswanglerg, the chief executive of CP Vietnam Corporation (CPV). 

The company, formerly known as CP Vietnam Livestock Corporation, is a leading integrated livestock and aquaculture concern in the country.

Established in 1993, CPV's integrated livestock and aquaculture businesses span the entire food production chain - the manufacture and distribution of animal feed, the breeding and farming of livestock and aquatic animals and the processing and production of meat and packaged food products.

Currently, 90% of CP businesses in Vietnam are concerned with animal feed, feed meal and aquatic animal farming, with food processing and ready-to-eat food accounting for only 10%. 

CPV saw strong growth in each of the past five years, averaging 29% annually.

Last year, the company achieved revenue of 30 trillion dong (44.4 billion baht), up by 50% from 2010.

The company projects revenue growth of 15% this year.

"Vietnam's economic growth is forecast at 6% next year, and the country is rich in marine natural resources," said Mr Sooksunt.

This rising affluence will result in an expansion in financial services and basic sectors such as food and beverage.

With 68% of the country's 90 million residents under the age of 40, Vietnam's expanding workforce is expected to drive consumer spending over the next 10-15 years, he said. Vietnam's middle class comprises 7 million families, with the number expected to double in five years.

(Source: Bangkok Post, Economics, FOOD, CPF to focus on Vietnam's middle class, 18/09/2012, Chatrudee Theparat, link


Marketing in Foreign Countries Vocabulary

Charoen Pokphand Foods Plc (CPF) - Thailand's largest company producing agriculture-related products (agribusiness), a publicly traded subsidiary of the Charoen Pokphand Group (CP Group), the core businesses are livestock with broiler chickens, layer chickens, ducks and pigs and and aquaculture with shrimp and fish (See Wikipedia)

food processing - the process of turning meat and crops such as vegetables and fruits into food products in a factory that can be sold in stores (See Wikipedia)

livestock - animals such as cows, cattle, and sheep that are raised for commercial products such as meat, skins, or wool (See Wikipedia) ปศุสัตว์

broiler
- chickens bred and raised for meat production (See Wikipedia)
chicken
(as food) - (See Wikipedia)

poultry farming - the raising of domesticated birds such as chickens, turkeys, ducks, and geese, for the purpose of farming meat or eggs for food. Poultry are farmed in great numbers with chickens being the most numerous(See Wikipedia)

aquaculture
- the farming of shell fish and plants underwater includes: fish farming, shrimp farming, oyster farming, raising cultured pearls, kelp, seaweed, and algae (See Wikipedia)

middle class - people who have incomes in the middle, not rich, not poor (See Wikipedia)
growing middle class - meaning: less poor people
the country's growing middle class

brands - products with well-established names that people remember, that create a certain image and expectations about the product
brands will become more important in Vietnam

focus - the main thing it is concerned with ให้ความสำคัญ
focus on - spend most of your time doing this one thing

CPF to focus on Vietnam's middle class

ready -
prepared and available to be used เตรียมพร้อม
ready-to-eat food - food that can be eaten almost immediately (with little preparation, only warming)

SET-listed - the stock shares are bought and sold on the Stock Exchange of Thailand (SET)

expansion - when something increases in size, number or importance การขยายออก
beef up - improve

beef up expansion
beef up expansion into food processing from live animals

demand - the need and desire to buy goods and services by households and businesses ความต้องการ
cater to demand - meet demand; provide people with the things they want and need
cater to demand from that country's growing middle class

CP Vietnam Corporation, a unit of the SET-listed Charoen Pokphand Foods Plc (CPF), will beef up expansion into food processing from live animals to cater to demand from that country's growing middle class.

foreseeable - an event that you know or see or predict will happen in the future and therefore can plan for
In the foreseeable future, ... - not too in the future, only the period in the future that you can make plans for 

"In the foreseeable future, the group's business here will focus more on food processing and ready-to-eat food, while brands and marketing will become more important in Vietnam," said Sooksunt Jiumjaiswanglerg, the chief executive of CP Vietnam Corporation (CPV). 

a concern -
a business
an aquaculture concern  
a livestock concern

integrated - joined together into one whole (with all parts working together well) ที่รวมเข้าด้วยกัน
integrated livestock and aquaculture businesses

leading - one of the most important
a leading integrated livestock concern

The company, formerly known as CP Vietnam Livestock Corporation, is a leading integrated livestock and aquaculture concern in the country.

chain - a series of things or people that are connected
food production chain - all the activities in producing and selling food products

entire - all of something
the entire food production chain

span - the amount of time that something lasts ช่วงเวลา
the company's businesses span the entire food production chain

animal feed - food for animals

manufacture - to make goods in large quantities from raw materials or parts, using machinery งานผลิต, ผลิตด้วยเครื่องจักร, ผลผลิต, ผลิตผล
distribution - 1. the process of getting a company's product to stores and customers; 2. giving or delivering things to many people การจำหน่ายออกไป

the manufacture and distribution of animal feed

aquatic -
related to the water
aquatic animals -
animals living in the water (such as fish and shrimp)

livestock  -
the animals kept by farmers as a source of income, for example cows or sheep

breeding - the keeping of animals or plants in order to produce young animals from them การผสมพันธุ์สัตว์เพื่อขยายพันธุ์
the breeding and farming of livestock and aquatic animals

the processing and production of meat and packaged food products

Established in 1993, CPV's integrated livestock and aquaculture businesses span the entire food production chain - the manufacture and distribution of animal feed, the breeding and farming of livestock and aquatic animals and the processing and production of meat and packaged food products.

concerned
businesses concerned with animal feed, feed meal and aquatic animal farming

annually - happening every year ทุกๆปีด
averaging 29% growth annually

revenue - income from taxes or business activities รายได้
the company achieved revenue of 30 trillion dong

projects revenue growth of 15% this year

Currently, 90% of CP businesses in Vietnam are concerned with animal feed, feed meal and aquatic animal farming, with food processing and ready-to-eat food accounting for only 10%. CPV saw strong growth in each of the past five years, averaging 29% annually. Last year, the company achieved revenue of 30 trillion dong (44.4 billion baht), up by 50% from 2010. The company projects revenue growth of 15% this year.

forecast - a statement about what will happen in the future based on information available now พยากรณ์
economic growth is forecast at 6% next year

natural - found in nature (not made in a factory by humans) ตามธรรมชาติ
natural resources - things such as coal, trees and oil that exist in nature and can be used by people ทรัพยากร

marine
- relating to the sea and creatures that live in it เกี่ยวกับทะเล
marine natural resources 

rich - with a lot of , with large amounts of อุดมไปด้วย
the country is rich in marine natural resources

affluence -
being rich; having money to spend
rising affluence

financial services - the services that banks provide such as loans and banking accounts
expansion in financial services

beverage - a drink of any type เครื่องดื่ม
food and beverage sector

basic -
an important that the rest is built on
sector -
part of the economy
basic sector -
one of the few most important parts of the economy (the the rest of the economy is built on)

basic sectors such as food and beverage

residents - people who live in an area ราษฎรในบริเวณนั้น ผู้อาศัย ผู้อยู่อาศัย ชาวบ้านในบริเวณ ผู้อาศัยในบริเวณ
the country's 90 million residents under the age of 40

workforce - all the people in an area or country available for work, all the people who work for a company แรงงาน
expanding workforce

consumer
- someone who buys and uses goods and services ผู้บริโภค
consumer spending

drive - cause change
drive consumer spending

expected - believe will happen คาดว่า (จะเกิดขึ้น)
expected to drive consumer spending

double - to become twice as big, twice as much or twice as many เพิ่มเป็นสองเท่า
the middle class is expected to double in five years

"Vietnam's economic growth is forecast at 6% next year, and the country is rich in marine natural resources," said Mr Sooksunt. This rising affluence will result in an expansion in financial services and basic sectors such as food and beverage. With 68% of the country's 90 million residents under the age of 40, Vietnam's expanding workforce is expected to drive consumer spending over the next 10-15 years, he said. Vietnam's middle class comprises 7 million families, with the number expected to double in five years.

About the author

columnist
Writer: Jon Fernquest
Position: Online Writer