Human and system

- In 2012 and first 6-month of 2013, difficulties in export area is increasingly clear, so is the difficulties in agricultural products export sector similar with Phuc Sinh’s activities?
2012 is the best year of operation of Phuc Sinh during 12-year in establishing and development. Our export turnover reaches VND 3.453 billion. Tax Administration awarded Phuc Sinh the Merit List to be the good taxpayer. The most important thing is that we have built he foundation for the long-term development based on many elements, in which we have relationships with many customers, partners - the big distributors, small-medium producers, direct roasters all over the world…
- 30-40% of Vietnamese coffee enterprises are in status of “clinical death” so there are many difficulties from many sides, including the price of Robusta coffee drops down. Does Phuc Sinh have difficulty in coffee?
Underprice does not mean to cause difficulties for enterprises. Despite of underprice, we still “preserve force” and “earn”. That is due to Phuc Sinh always use the support tools for ensuring winning price. We have the investment department to implement and use tools on the world commodity transaction market. Many Vietnamese enterprises know that but they do not do it, or maybe they do not know, or not have condition. Basically, to make these tools promote, and ensure safety, the most important thing is that there are actual commodity. We have them, and clear the real price and real goods, we have warehouse and transportation partners in the world market. There must be the actual, we can use the “illusive” tool successfully.
On the world commodity transaction market, the price of agro-products fluctuate a lot. Sometimes only within 1 hour, a ton of coffee would have evaporated for hundreds of dollar. But if enterprises post their bill on Stock exchange market, and their business operation is good, so although whatever the market comes down, they are still interested by the investors; so the commodity exchange center is the same, any enterprises have real goods, good prestige they are always welcomed by customers.
- Could you share your know-how to build prestige and to be welcomed by the customers?
That is our effort in a long process. Phuc Sinh is established in 2001. We just have an office with 3 people and the initial capital of hundreds of billion VND. 3 years later, our export turnover reached USD 5-7 billion/year. Then after 2 years, the turnover increased over USD 10 billion. The problem of administration for Phuc Sinh is not the same as before.
- How to administrate the business better with bigger scale?
There are many options. After considering, Phuc Sinh decided to choose the process of Enterprise Resource Planning (ERP) to conduct and establish a multi-application system for managing resource and running overall operation at all places. In short, this is a support solution for management of input, output and all the internal operation process. Cost for this solution is not cheap, but Phuc Sinh determinedly do where to choose.
- How much is for ERP solution as what Phuc Sinh did? Actually, there have been many Vietnamese enterprises using ERP, and they still…complain?
80.000 USD is for first 2 years in implementing ERP. With Phuc Sinh, I think that is the deserved price. But whatever ERP just is a selection of tool, the support solution for management, and results depend on resource, people. Each person has his/her own good capacity but one person cannot manage or do everything. There must be system and how the system is due to human.
Audit + Factory = Belief
- According to your experience, Is human enough to make the prestige with customers, foreign partners ?
Contacting with customers, foreign partners, importers of course they will see our attitude and our good-will. But they also see what we have to talk to them. The same to the domestic partners. How is your ability, who verifies that is very important. One of the factors which makes Phuc Sinh have prestige with partners in general is from the beginning we have chosen the transparent activities. In 2004, Phuc Sinh implemented annual audit with Dat Viet Audit company. Then we dis with Ernest&Young.
- For Enterprises have not been public, haven’t posted their bill, why do they have to audit for making complicated and waste money?
That is wrong thinking. The stable property of Phuc Sinh is not so much but banks always is affectionate us and provide the big credit limit. Why? Because excepting the orders and production capacity of Phuc Sinh, the banks believes in our cash flow and the audited specific trading data which stated on the annual finance report. Moreover, implementation the finance report also contributes to increase the transparence inside the enterprise. Its internality is not transparent, we cannot persuade our partners that we are transparent.
- What are you proud of the best in Phuc Sinh when introducing it to partners, the international importers?
Of course, it is the quality of products and services in Phuc Sinh, and may other factors.
- What makes Vietnam pepper have the biggest yield in the world, but why is the pepper price always lower than in Indonesia?
That is due to quality. Recognize that, Phuc Sinh always invest for factory, laboratory, warehouse.. to enhance product quality. After period of establishment and operation, we invested for the first pepper factory. Next, we have conducted the sterile pepper factory in order to meet Food safety Hygine standard for the “difficult” markets such as America and Europe. This is one of four sterile pepper factories, 2 belong to the Dutch and America businesses, one belonging to Singapore.
For coffee, Phucs Sinh also invests in production factory. All factories run in accordance with ISO 22000, thanks to this standard, Phuc Sinh can manage quality, check product. Phuc Sinh has a laboratory and the testing-cup of coffee room applying the quality management system ISO 17025. When the foreign customers come in Phuc Sinh for checking and visiting, they have been very satisfied and given the maximum score. We are always active in determine ourselves to partners directly or through the third party by inviting audit partners to come to Phuc Sinh for finance audit.
Change and…adventure.
- It seems that Phuc Sinh is not afraid of looking for the support from external partners?
We have so many partners. Exception unit provides ERP, audit, another our partner cannot be lack of is Law Consultant Company. Having them, Phuc Sinh have been advised business contract in a coherent way and the correct law. They resolve the disputes arising in the contract for Phuc Sinh, if yes, and sometimes we get back hundreds of thousand USD from the dispute contracts. Working with the Law company, we determine that we must pay for them hundreds of million VND every year without doing nothing; but there cannot be without them. That is a big support for business in the integration period.
- Always be synchronous “quality and safety”, are there any when you adventure in business decision?
Yes, I am. Adventure does not mean adventure without basic. For me, adventure is a feeling, a sensitiveness in some moments from that I make decision…which no one can understand. But the result is very great. For example, trading on commodity exchange center, some decision made within some hours within a day, but they can get back profit a lot. That thanks to adventure, and starts from “feeling’, from the instinct of a businessman and my experience.
- Are there any decisions from your feeling which make immediate changes for Phuc Sinh?
Our internality is not transparent, we cannot persuade our partners that we are transparent ?
In 2012, I decided to change 42% of the internal resource. That is an immediate decision. Chief of Human resource department of Phuc Sinh who has just been employed made a report of evaluating positions of resource and we recognize that it should not keep person in one position. Because when they satisfied with their stable positions with high salary, works are run monotonously without any other need or motivation to improve and create themselves. I had changed the key positions such as assigning Executive Director, changed Finance Director and Chief Accountant. The resources of each department had been changed. Of course they were not satisfied with change but with higher salary. I persuaded them and then they started to take part in. thanks to it the “internal” reform is successful.
- Standing in No.1 position on pepper export and still go ahead to the world market within a short time, what make you believe Phuc Sinh “not bloating greatly, falling fast” ?
Many people ask me what I think of my our success, especially when I succeed very fast and I am young. My answer is: Luckiness. Besides, I do not think too much about success. Success today is also the past. The important thing is what will we do at present and tomorrow. Moreover, I know that although what big we are, nothing ensures that we will succeed forever. CitiBank, a great bank with a hundred years of history in America, it also faces to $1/share on the market, and if without support from Government of America, it can be bankrupted like LehmanBrothers. So, I have never looked at only the medal today, I always look forward to tomorrow.
- Thanks very much for your valuable time to share with us toay ! 

CDC