The resources and capabilities of the Nafoods Group

TABLE OF CONTENTS
1. Highlights about Nafoods Group...........................................................................1
2. The resources and capabilities of the Nafoods Group..........................................1
2.1. Resources of the Nafoods group.............................................................................1
2.1.1. Tangible resources...............................................................................................1
2.1.2 Intangible resources.............................................................................................2
2.2.The capacity of the Nafoods group.........................................................................3
2.2.1 Management capacity:..........................................................................................3
2.2.2. Production capacity:............................................................................................4
2.3 Nafoods Group's core competencies.......................................................................4
2.3.2 Rare...................................................................................................................... 6
2.3.3 Inimitable & Non-substitutable............................................................................7
3.The competitive advantages of the Nafoods Group...............................................9
3.1. Advantage in low cost............................................................................................9
3.3 The advantage of centralization..............................................................................9
4.Factors affecting competitive advantage of Nafoods...........................................10
4.1 Productivity..........................................................................................................10
4.2 Quality................................................................................................................... 11
4.4 Customer feedback................................................................................................14
5.Value chain of the Nafoods Group........................................................................15
5.1 Logistics input.......................................................................................................15
5.2 Manufacturing.......................................................................................................15


1. Highlights about Nafoods Group
Nafoods Group is among the most innovative fruit and vegetable
growers,processors and exporters in Vietnam, specializing in Fruit Juice/NFC,
Puree,Concentrate, IQF and Fresh Fruits. The Company sources more than 13,300
tonnes of fresh and processed fruits annually from various regions in Vietnam
including the Central Highlands, Northwest, and North Central Coast. The Company's
products are distributed all over the world, especially in Europe, the United States,

Oceania, the Middle East,Japan and South Korea.Nafoods Group is one of the frontrunners in Asia in the field of integrated agricultural processing. Nafoods has taken
full control over their own value chain including: raw material areas (seedling,
cultivating),harvesting (fresh fruits), processing & manufacturing, exporting &
distribution in order to bring the highest added value to customers, employees,
shareholders and the market
2. The resources and capabilities of the Nafoods Group
2.1. Resources of the Nafoods group
2.1.1. Tangible resources
a, Financial resource
Nafoods group has expanded cooperation relationship with a number of financial
and investment partners. IFC's investment helps Nafoods expand their numbers into
cold chain companies that match them to receive the system ISO: 22000 food is
widely recognized in the world. Besides investment and technical advice of IFC
Nafoods in an effort to add value to our products use principles of safe and
sustainable agricultural practices production department. That gives Nafoods the
upper hand
prominent paintings such as AFIEX, Quang Ngai Agricultural and Foodstuff
Joint Stock Company Exported agricultural food in Nam Dinh when they are not
the development and supply of new products to the market.
b,Physical resource
Regarding agricultural product procurement: Nafoods raw materials are
collected from monopolistic farms. With the goal of expanding the material area to
include 30% processing machines in Nghe An and Long An are convenient from all

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directions Cambodia. Currently, Nafoods has a system of factories in many localities
across the country. Typically the Naprod factory Que Phong seedling, Nasoco Long
An factory, that factory.

c, Human resource
Resource development is paid atten-tion by Nafoods through organizing training
courses on skills, knowledge and especially attitudes to ensure quantity.
Previously, Nafoods applied human resource management method The salary and
bonus system has not clearly reflected capacity and results implementing a new way:
innovative application of BSC & KPI; Policy 3P for the entire organization; Talent
management system and successor team treat Nafoods; internal pricing system for
efficient operation With effective human resources, including many professionals with
a deep understanding of agricultural practices Nafoods world has boldly integrated
information technology into the garden management and control system, building
middle, agent and customer management application development; step by step
agriculture, asymptotic digital agriculture background.
d, Organizational resource
At factories, the Group strictly applies quality management standards, effectively
and rationally controls food safety and hygiene.
2.1.2 Intangible resources
a. Resources for skills
In 2013, Nafoods Group invested in more multi-production lines
diversify products and expand export markets. In 2019, Nafoods is the first and
only business 3 varieties of passion fruit are protected by the Ministry of Agriculture
and Agricultural Development, including Nafoods 1, Que Phong 1.
b. Resources for innovation
The Nafoods Group focuses on training especially attitude. The Group has
organized a training of 1,467 taels hours of training. In which, the outstanding training
programs such as: responsibility and do not blame internally; Training on standards
PRP, hazards affecting product quality at Use the program selectively suitable for each
object The more you improve your skills, perfect yourself, in order to meet the needs
Corporate business in 4.0 era

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c. Reputation, position
Nafoods Group is one of the growing and processing groups the most innovative
fruit in Vietnam, specializing in fruit juice / NF .Fresh fruit, IQF, and condensed fruit
are produced on industrial lines with strict quality requirements, ensuring the
standards
ISO 22000: 2500, HACCP, SGF ... In Vietnam, Nafoods Group is the pioneer
and leader in the production of concentrated passion fruit juice. Currently, the
Company accounts for more than 80% Concentrated passion fruit made in Vietnam
with a wide range of raw materials stretching across regions and neighboring
countries. In the international arena, Nafoods Group's passion fruit products in the
most demanding markets such as Europe, America, and Japan, the company provides
about 8% of the above concentrated passion fruit.
2.2.The capacity of the Nafoods group
2.2.1 Management capacity:
Towards sustainable development, managers Nafoods is constantly learning,
exploring and developing and diversifying According to experience from developed
countries, want to develop production All along the value chain, S&T application is an
inevitable trend.Meanwhile, the Nafoods manager has proactively developed
agriculture
high, helping to create a breakthrough to improve productivity and quality of the
product. At the same time actively promote the media, give effective, strong enough to
enhance competitiveness. Put food safety as the top principle, and strictly control the
management and quality control in international standards. Human resources are
defined by the company as one of the assets that contributes to a competitive
advantage. Hence staff development, is focused through the organization of training in
skills, knowledge, day by day perfecting and building a corporate culture mcreate a
solid foundation, civilized, guaranteed to be of employees in the company. Employees
are guaranteed benefits that rule out laws, are respected, developed, and recognized.

Regarding environmental protection, Nafoods Group always takes care of the matter
Every crop and production has impacts on the environment

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So all solutions are aimed at the main purposes: use inputs (materials, energy,
water sources) and controls minimizing the impact on the environment, supporting the
community and striving to build a rich, beautiful and civilized homeland. In all its
activities, the company development is linked with the common development of the
country.
2.2.2. Production capacity:
Raw material area:
Material areas of Nafoods Group spread Group has been cooperating to work
with farmers and associations partners in all three regions of North, Central, and South
and some major partners in La
- Production facilities:
Fruit and vegetable processing factory for export in Quynh Chau, Quy
Capacity: 5,000 tons of product / year concentrate line and line
tons of products / year. Vegetable and fruit processing factory for export at Ap
Hoc Thom 1, Duc Hoa District, Long An Province. Capacity: Line she
product / year and line IQF 5,000 tons of products / year. Plant producing
passion fruit juice in Pleiku City - Gia Lai tons of epidemics / month. Nursery nursery
with a scale of 5 ha, a capacity of 6 million Tri Le commune, Que Phong, Nghe An.
And a number of coin facilities Nafoods Group outsourcing.
- Human capacity:
For employees, employees: At Nafoods, awareness of developing employees in
regard to building an environment. And positively, Nafoods spends a big part of the
budget
Annual employee training through training programs out. The Group wishes to

create the best opportunities and conditions I improve my knowledge, develop myself
and contribute company and community. For partners and experts: Nafoods
cooperates with many and internationally with a deep understanding of agricultural
activities.
Thereby, Nafoods received the investment and technical consultation as well
important role for development, giving due competitive advantage
2.3 Nafoods Group's core competencies

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2.3.1. Value
During its business operation, Nafoods Group relies on Vietnam's strengths in
tropical fruits and agricultural products to develop its product portfolio. The
diversified product portfolio is divided into four main groups: concentrated juice,
juice / NFC / Puree, fresh fruit and seedling (passion fruit).
While the majority of Vietnam's agricultural products are traded on both
domestic and export markets in fresh, unprocessed form and at low prices due to poor
quality compared to other countries. While the prominent competitors of Nafoods
such as AFIEX, Lafooco, ... have no breakthroughs in the development and supply of
new products in the market, the investment and technical advice of The IFC has
provided great support to Nafoods in enhancing the value of its products by adopting
principles of safe, sustainable agricultural practices and improving production
facilities. The Group's increased production capacity will enable more opportunities
for local farmers to increase income and meet the market requirements of high value
export markets.
In cooperation and support relationship: The Company expands the cooperation
relationship with a number of financial and investment partners such as IFC Financial Institution under the World Bank. In 2019, successfully calling for 8 million
USD of investment in preferential stocks from IFC, IFC advised Nafoods to
implement a food safety management system for the company's cold supply chain in

accordance with the system certification. Food Safety System ISO: 22000 is widely
recognized in the world. IFC's investment and technical advisory greatly support
Nafoods in their efforts to add value to their products by applying the principles of
safe and sustainable agricultural practices and improving mechanisms. production
department, which helps the group to improve production capacity, expand export
markets and develop a new fruit seed business.
In addition, the company cooperates with Chung Hsing University of Taiwan.
The Plant Research and Breeding Institute was established with a capacity of 6 million
plant varieties per year, meeting domestic demand and exporting to Laos and China.

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Nafoods Group has exploited Southeast Asia's competitive advantage in growing
vspecific fruits including passion fruit, banana, dragon fruit, coconut and citrus fruit to
develop material areas of Nafoods Group. in Vietnam, Laos, and Cambodia.
Along with the convenient location of warehouses and factories near local
seaports, more than 5000 tons of the company's fruit products (~ 85% of export
losses) are shipped to all over the country each year.
2.3.2 Rare
Management's mindset: The different mindset made Mr. Nguyen Manh Hung
decide to choose Que Phong, a poor border district of Nghe An province, to build the
Nafoods Seed Institute, which surprised many people when he was far away. lack of
conditions. He has a right mindset and vision when he sees that Nghe An has a
suitable climate, clean soil, low virus infection for breeds, and keeps technological
know-how safe. And so far, passion fruit has become the main crop of Que Phong
district when 1,200ha is planned for this plant.
When Nafoods identified key products, the Company found that many fruit and
vegetable products suffered from great competition from China, Thailand and the
Philippines. There are only a few products such as passion fruit, gac, we have a

competitive advantage and other products such as pineapple, lychee, banana ... we do
not have a competitive advantage compared to regional competitors. Furthermore, we
are also at a more tax disadvantage. During the development of passion fruit tree, the
company found this to be the most suitable variety in Vietnam, although passion fruit
appeared first in Taiwan, Thailand, Malaysia, China 30 years ago, but in terms of
efficiency. then in Vietnam is still the most effective. In 2019, Nafoods is the first and
only enterprise in Vietnam to create 3 varieties of passion fruit certified and granted
protection rights by the Ministry of Agriculture and Rural Development, including
Nafoods 1, Que Phong 1 and Bach Huong 1.
- Passion fruit seedlings:
The seedling product of Dai Nong 1 passion fruit seedling is produced by
Nafoods Seed Institute in a modern greenhouse system with a closed process, strictly
controlling the virus and introduced to the market since 2014. The launch of the
product This product creates a closed circle of a vertical agricultural value chain at

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Nafoods Group, not only gives Nafoods Group a significant revenue structure but also
acts as a bridge, a vehicle for Nafoods Group to control. and well manage raw
material areas, ensure stable sources of raw materials for production. Therefore,
Nafoods Group has determined that passion fruit seedling will be an important
product contributing to its differentiation and sustainable development.
- IQF frozen fruits and vegetables:
Including fast frozen processed vegetables, tubers and fruits such as: Banana
IQF, Red Dragon fruit IQF, IQF Coconut, IQF Mango, IQF Pineapple, IQF Passion
Fruit, IQF Carrot, IQF Ginger ... After the production complex and fruit processing for
export in Long An came into operation in April 2018, the processing output and sales
of these products have increased strongly, contributing more and more to the revenue
structure of Nafoods Group, especially IQF Dragon fruit, IQF Mango and IQF

Coconut. In addition, the company has expanded cooperation relationships with a
number of financial and investment partners, such as IFC - a financial institution
under the World Bank. Nafoods is the second agricultural company in Vietnam,
invested by IFC in phase 1 with 8 million USD and committed to continue long-term
investment.
2.3.3 Inimitable & Non-substitutable
The management's leadership ability for the staff has a great influence on
Nafoods Group. Because in the production and processing of these fruits products can
be easily replicated, but people themselves are the only difference that cannot be
reproduced, and then from different people create products. product difference. For
that reason, since its inception, Nafoods has attached great importance to building
staff to create a core competency through organizing training on skills, knowledge and
especially attitudes to ensure that the quantity and quality are suitable for the job and
the inheritance. The Group has trained 1467 people, with 5205 hours of training. This
is the hardest resource to imitate and the company has exploited it well to create
differentiated products, successfully developing in areas where there are many big
competitors to complete its value chain.
2.3.4 Exploitable by the firm

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With existing human resources, including many domestic and international
experts, with a deep understanding of the agricultural activities of Vietnam and the
world. Nafoods has boldly integrated information technology (IoT - Internet of
Things) into the garden management and control system, built a centralized database,
developed the application of agent and customer management; step by step modernize
agricultural activities, asymptotic to smart digital agriculture.
The company also started construction of a factory processing passion fruit,
vegetables, fruits for export; received Global GAP certification for Nafoods passion

fruit farm in Moc Chau. The passion fruit, vegetable and fruit processing factory was
built in Bo Bun Industrial Park, Dong Sang Commune, Moc Chau District, Son La
Province on an area of 2ha, the total investment for 2 phases is 200 billion VND.
Nafoods has boldly invested in a chain of frozen fruits and vegetables and is now a
reputable frozen fruit and vegetable producer and exporter to fastidious markets such
as Europe, Australia, America, and Korea. National, Japanese. Nafoods' products all
achieved prestigious international certificates such as: System international quality
assurance control system (SGF IRMA); Certificate of global food safety and quality
standards for retail food KOSHER, HALAL, BRC; Food safety management system
ISO 22000: 2005 / HACCP. Some typical products of Nafoods have a significant
impact on the revenue growth of the business such as:
- Cashew nuts - value added products. These are the newly tested products of
Nafoods Group in Q4 2018, including value-added products such as cashew kernel,
dried mango ... exported to Russia, Middle East ... However, these products have
yielded remarkable and promising sales results in a short time period.
- Fresh fruit: At the end of 2017, Nafoods 'fresh fruit passion fruit products were
officially exported to the European market, marking an important step in Nafoods'
business strategy. Following that success, in 2018, fresh fruit products such as dragon
fruit, sour lemon, banana, ... were exported to Asian and Middle East markets,
especially China - Market. the world's greatest potential for fresh fruit demand.
→ Assess the core competencies of Nafoods
At Nafood group, people are the core values of the business, so the company
always focuses on building a team of human resources with enough talent and virtue

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to participate and dedicate themselves in the construction career. business
development is more and more successful. The company determines that human
resources are one of the most important assets, contributing to creating a competitive

advantage for businesses.
Therefore, resource development is really focused on by Nafoods Group
through training of skills, knowledge and especially attitude to ensure quantity,
quality, suitability and inheritance. . The enterprise has organized training courses for
1,467 people, with 5,205 hours of training. Including outstanding training programs
such as Responsible Cultural Training and do not blame internally; training on ISO
standards, PRP regulations, hazards affecting product quality at factories ... Selective
program content, suitable for each object, helps employees increasingly raise their
hands. career, self-improvement to meet the production and business requirements of
the Company in the 4.0 era.
3.The competitive advantages of the Nafoods Group
3.1. Advantage in low cost
When the business offers similar products / services at a lower price than its
competitors.
+ According to the website of Nafoods, their first competitive advantage is the
raw material area. Taking advantage of local agricultural products is cheaper for
Nafoods. The company drafted cooperation contracts with clear commitments that the
Nafoods Group purchased all types of fruit every year that farmers co-produced. This
ensures farmers benefit in stable quantity and competitive price.
+ Regarding the technological process, in order to reduce production costs,
including transporting and handling post-harvest damage to fresh produce, Nafoods
Group has developed its processing plants close to raw supply.
3.2 Advantage of differentiation
When the business offers different products / services from the competition
+ Nafoods Group has exploited Southeast Asia's competitive advantage in
growing specific fruits including passion fruit, banana, dragon fruit, coconut and
citrus fruit.
3.3 The advantage of centralization

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Requires businesses to focus on the process of responding to a narrow and
exclusive competitive segment to gain a local competitive advantage rather than a
large market.
+ "King of passion fruit" is the name people use to call Nafoods. In 2019, the
company focuses and develops on passion fruit as follows: Select and create 03 new
varieties of passion fruit suitable for processing and fresh food needs. Higher
productivity and better resistance to disease.
In addition, the Company has a bigger advantage with the factory chain Nafoods
Group: The factory chain of Nafoods Group is evenly distributed throughout Vietnam,
including: Nghe An province, Long An province, Son La province, Gia Lai province
and province. Binh Thuan. Total capacity of more than 20,000 tons of products per
year, meeting the needs of domestic consumption and export, creating good jobs for
thousands of people across the province. Two processing factories in Nghe An and
Long An are convenient from all directions of Vietnam, Cambodia and Laos.
4.Factors affecting competitive advantage of Nafoods
4.1 Productivity
The company supplies more than 13,300 tons of fresh and processed fruit
annually from farmers in different regions in Vietnam including the Central
Highlands, Northwest and North Central Coast regions. The company's products are
distributed all over the world especially in Europe, the United States, Oceania, China,
Japan and Korea.
· Nafoods has a system of modern factories in many localities across the country.
Highlights can be mentioned as:
- Naprod Nghe An factory, located at Quynh Luu army, includes 1 concentrated
juice production line and 1 IFQ production line with an area of 5ha, capacity of 5000
tons of concentrated juice / year.
- Que Phong breeding factory, located in Que Phong district in association with
experts from Chung Hsing University - Taiwan, factory has an area of 6ha, capacity of

6 million seedlings / year.
- Nascoco Long An factory, located in Duc Hoa district. Includes 1 fruit juice
production line and 2 IQF production lines, with an area of 6.5ha, capacity of 7000

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tons of concentrated juice / year and 5000 tons of IQF products / year, consumption of
100,000 tons. fruit material / year
- Tay Bac Packing Factory preliminary processing, packaging and preserving
fruit for export in Moc Chau; classification system, freezing and preservation,
covering an area of 2 hectares (to be expanded to 4 hectares by 2020), consuming
50000 tons of fruit materials / year
- The Central Highlands agricultural complex in Gia Lai province, covering an
area of 13 hectares, includes: research center for high-tech plant breeding, production
plants for classification, separation, packaging and preservation. fruit export
- Nafoods Binh Thuan Fruit Packaging Complex, located in Binh Thuan
Industrial Park, includes a packaging factory and a cold storage system with an area of
2 hectares, consuming 60000 tons of fruit materials / year
- The total capacity of the current fruit is 200,000 tons / year and the year 2022 is
325,000 tons / year
Nafoods Group has exploited Southeast Asia's competitive advantage in growing
specific crops including passion fruit, banana, dragon fruit, coconut and citrus fruit to
develop its raw material areas. . The Mekong Delta accounts for nearly 40% of the
country's total fruit production area, and the northern mountainous region accounts for
about 23% of the total production area.
4.2 Quality
Nafoods is committed to improving the quality of its products to meet the high
standards of strict markets like the EU. Nafoods also has international certifications
such as GLOBALGAP, Rainforest Alliance and Fair trade, which will help the group's

farmers grow high quality and sustainable fruit and expand their access to new
markets.
· Nafoods is the second Vietnamese company invested by IFC in phase 1 with
USD 8 million and committed to continue long-term investment. IFC's investment
will increase the number of farmers participating in the company's supply chain by
11,500 people. Thereby, IFC will advise Nafoods to implement a food safety
management system for the company's cold chain in accordance with the ISO: 22000
food safety system certification which is widely recognized in the world.

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To ensure the quality of products, Nafoods always focuses on investing in
leading modern technology machinery, catching up with the world's production
technology.
· Nafoods' product development strategy, up to now, has always been aimed at
the safety and health benefits of customers. Therefore, Nafoods is extremely careful in
each stage: from material source to product packaging design to ensure maximum
safety for users. In addition, Nafoods absolutely do not use ingredients that can
adversely affect the health of consumers such as pesticide residues for all Nafoods
products at present and in the future.
4.3 Creative innovation
In terms of technological processes, in order to minimize production costs,
including transporting, minimizing and handling post-harvest damage to fresh
produce, the Nafoods Group has developed its processing plants close to the source.
supply of raw materials. Two processing factories in Nghe An and Long An are
convenient from all directions of Vietnam, Cambodia and Laos. Hence, the raw fruit
material is processed shortly after being harvested. Currently, Nafood has a system of
modern factories in many localities in the country. Featured as:
+ Que Phong seedling plant

+ Nasoco Long An Factory
+ Northwest packing factory
+ Central Highlands high-tech agricultural complex
+ Nafoods Binh Dinh fruit packaging complex
At the factories, the Group strictly applies strict quality management standards,
effectively and rationally controls the quality of international standards that has passed
the rigorous assessment of customers.
đ Creating products that can satisfy customers better, improve the quality of
existing products, and reduce costs.
-In terms of research and development, with the goal of differentiating,
improving the quality of existing products while creating new products with added
value, meeting the requirements and standards of customers: Research and

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development activities are always interested and focused by the company. Select and
create 3 new varieties of passion fruit suitable for processing and fresh food needs.
=> Create products that customers find more valuable, increasing the profit
margin for the business.
- Regarding the management and application of IT, the group has thoroughly
applied the KPIS system for operational management in order to bring about the
highest efficiency in order to bring about the highest efficiency, and to build a seed
sale agent platform. Successfully built the online meeting room system, increasing the
need for team exchange in the coordination between the most remote geographic
areas, the sales and marketing block. Working with research partners to build
application platforms, CRM software for fresh fruits and traditional businesses to
focus the basic items on one term, deploy and upgrade server infrastructure, to meet
meeting infrastructure requirements when deploying and putting into use synchronous
enterprise administration software, deploying a collective monitoring system.

+ The company determines that human resources are one of the most important
assets, contributing to a competitive advantage for businesses. Therefore, developing
resources is really focused by Nafoods Group through organizing training courses on
skills, knowledge, and especially attitudes to ensure quality quality, work suitability
and accounting. redundancy, ... The program content is selective, suitable for each
object to help employees increasingly improve their skills, improve themselves, to
meet the needs of production and business of the Company in the 4.0 era. Creative
application of BSC AND KPI. The internal pricing system operates effectively the
profit centers. “From 2018-2020: Actively market-proactive in raw materialsproactive in production- financial initiative. From 2021 on: Outstanding supplier Excellent purchasing partner. Attract and select a team of highly educated,
experienced and motivating employees. The employees who hold high positions are
carefully selected by the Company to meet the needs of expanding production
capacity, qualifications and experience according to job requirements. With existing
human resources, domestic and international experts, a deep understanding of
Vietnam's agricultural industry and the world, boldly integrating information

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technology (IoT- Internet of Things), building muscle centralized database, step by
step modernizing, approaching smart digital agriculture.
4.4 Customer feedback
Nafoods distributes its products in domestic and international markets through
both direct and indirect channels. More than 5000 tons of the company's fruit products
are shipped to all over the country each year. In which, the aviation market is only
applied to fresh fruit orders such as the US, Australia, France, Korea, Japan and
Shanghai (China) due to high air transportation costs. Along with that, the group has
increased more trade promotion activities, through more appearances at international
agricultural trade fairs, as well as organizing social programs such as volunteering and
social activities. favor customers, stimulate consumer demand.
+ For traditional products such as fruit juices, frozen fruits continue to maintain

well in the available market such as Europe, America, Japan, Korea, ... and continue to
attack strongly enter the East U, Middle East market.
+ For seedling products, improve the quality of existing seedlings, step up the
sale of seeds directly to the people with agricultural extension programs, from the
supply of seeds, fertilizers, to agricultural materials. Procurement of agricultural
products from monopolistic farms The Company prepares cooperation contracts with
clear commitments that the Nafoods Group purchases all types of fruit every year that
farmers co-produce. Ensure benefits to farmers in stable quantities and competitive
prices, provide farmers with high quality seedlings, help farmers to have better
farming options, as well as support farmers through talent. major and agricultural
engineering.
+ For fresh fruit products, promote fresh fruit products, also exploit and develop
more high-value products to markets with the most potential for fresh fruit demand.
And choose to create 3 new varieties of passion fruit suitable for processing and fresh
food needs.
Identifying and satisfying customer needs significantly better than competitors.
Customers goods products and services according to the special needs of customers,
individuals, organizations. Increase customer response through time to respond to
customer support. Satisfying customers excellently creates differentiation of the

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business, creates customer loyalty to the brand and the business can achieve optimal
prices.
5.Value chain of the Nafoods Group
5.1 Logistics input
Regarding agricultural product procurement, Nafoods raw materials are collected
from monopolistic farms and contract manufacturers, with about 70% of raw materials
coming from smallholder farmers or ethnic minorities. The company drafted

cooperation contracts with clear commitments Nafoods purchased all the fruits
annually that the cooperative farmers produce. With the goal of expanding the
material area including 30% exclusive material areas, 50% from subsidiaries and
branches, the rest from farmers cooperating with the company who has cooperated
with local authorities in raw material areas. important material in Vietnam, expanding
in Southeast Asia and investing heavily in R&D for seedlings to develop raw material
areas, On seed products, in collaboration with Chung Hsing University of Taiwan
Plant research and propagation institute was established by a capacity of 6 million
seedlings per year. Nafoods owns a high-tech passion fruit seed institute with an area
of 24 6-hectare greenhouses, with a capacity of 6 - 6.5 million disease-free seedlings /
year, supplying seeds for a large area of passion fruit material nationwide and for
export to Laos. Currently, Nafoods Group has cooperated with local authorities to
plant 1500 hectares of passion fruit in Nghe An, 3000 hectares in Gia Lai and 5000
hectares in Son La.
5.2 Manufacturing
In order to minimize production costs including transporting, minimizing and
treating post-harvest damage to fresh produce, the Nafoods Group has developed its
processing plants close to the raw material supply. Two factories in Nghe An and Long
An are convenient from all directions of Vietnam, Laos and Cambodia. Therefore, the
raw materials are processed shortly after harvest. For raw material areas, they are
invested with a modern irrigation system, synchronous farming techniques to bring
clean fruit and vegetables with quality standards. Currently, Nafoods has a system of
modern factories in many localities across the country. With the modern European
technological line of machinery and equipment, clean fruits, vegetables and fruits are

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quickly transported to the factory, classified and put into the production line. Nafoods
Group's factory chains are evenly distributed throughout Vietnam, including: Nghe An

province, Long An province, Son La province, Gia Lai province and Binh Thuan
province. Total capacity of more than 20,000 tons of products per year, meeting the
needs of domestic consumption and export, creating good jobs for thousands of people
across the province. The highlights can be mentioned as:
- Naprod Nghe An factory, in Quynh Luu district: includes 1 condensed juice
production line and 1 IQF production line, with an area of 5ha, capacity of 5,000 tons
of coke juice special / year and 2,900 tons of IQF products / year. - Que Phong
seedling factory, in Que Phong district, in association with experts from Chung Hsing
University
- Taiwan has a greenhouse area of 6ha, capacity of 6 million seedlings / year. Nasaco Long An factory in Duc Hoa district includes 1 condensed juice production
line and 2 IQF production lines with area of 6.5 ha, capacity of 7,000

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