CEO of VINASAMEX and the "detours" along the path to organic industry dominance

DNHN - What makes Vianasamex CEO Nguyen Thi Huyen the most proud after a decade of business ownership is not the revenue and profit figures, but the development of a brand with soul, mission, and a philosophy of life akin to a human being.

Business with social impact is becoming a trend in recent years because of its sustainability, especially as the world enters a state of uncertainty. Vinasamex CEO Nguyen Thi Huyen was one of the pioneers leading the way as a mission despite the times ten years ago, when the concept of business having social effect was still relatively new in Vietnam. 

She simply understands that business is about contributing to the community and society. She chose to accompany the poor farmers in the high mountains on their path to introduce the Vietnamese organic cinnamon and anise brand to the international market because they deserve to be enhanced by the quintessential values. of cinnamon tree, star anise, and laborer's perspiration. 

From the first few farmers, Vinasamex has signed contracts with 3,000 farmers directly in the organic value chain. Thanks to changing thinking and ways of doing things, farmers' lives are becoming more and more prosperous. 5-6 years ago their income was only 7-10 million/ha, but now the income of each household is 150 million/ha. 

In 2016, Vinasamex achieved the four highest international organic certifications of the European, American, Japanese, and Korean markets, affirming that Vinasamex's quality can be met with the highest quality worldwide. 

While many businesses are struggling because of Covid-19, Vinasamex's revenue will still increase by nearly 60% in 2021. Currently, the company has four main raw material areas (Yen Bai, Lang Son, Cao Bang, Bac Kan). Vinasamex has also just signed a MoU with Cam Lo district (Quang Tri) to develop 20,000ha of cinnamon, creating stable jobs for about 400-500 local workers. 

When I visited Vinasamex in late March 2022 on a rainy spring day, the working mood at the Vinasamex office in Vang village (Co Bi, Gia Lam, Hanoi) was highly busy despite the weekend. After 10 years of existence and progress, Vinasamex is now laying the groundwork for a new chapter filled with tremendous goals. 

Q: It appears as though you and your staff are quite busy? 

A: Vinasamex is preparing to launch a four-year roadmap with four rounds of funding to prepare for the IPO plan to take place in 2026. On April 7, 2022, we will hold the first and only fundraising round for for individual investors. The following three rounds will be for investment funds and banks only.

The event on April 7 marked an important milestone for Vinasamex in the next journey, so we had to put all our effort into preparing. Up to now, I have determined that I must always be creative and different. The upcoming fundraising event will bring a different emotion and experience than any other company fundraising event in Vietnam.

Vinasamex's IPO is also motivated by two factors. One is to establish a space for investors to contribute to social impact in addition to profit. The second is to become the first brand in the industry of organic spices and essential oils to go public. Following our first public offering in Vietnam, we intend to list on foreign stock exchanges, thereby reiterating Vietnam's position and brand, particularly in the agricultural products sector. 

Q: As you prepare to turn a new page, do you believe the last decade has been a period of development or a period of preparation for a makeover? 

A: Probably both. Must develop to a certain extent, have enough foundation to be able to break through. It is a development but also a preparation because IPO is not the final destination, it is the beginning of the next steps. 

Q: How are you feeling about the prospect of fundraising for the first time? Are you anxious, concerned, or excited? 

A: I have no anxiety or nervousness because I clearly see the destination I want to go to and the path I have been steadfastly walking for the past 10 years. Now I am very excited and believe in what the whole Vinasamex team is trying to achieve. 

Q: What makes you the most proud of your ten-year journey? 

A: That is to bring Vinasamex to this point, not the location or the scale but a brand with an aim, a philosophy of life as a human being. 

To me, success is not always measured in terms of profit, but rather in terms of emotion: I am pleased, the farmer is happy, the customer is happy, and the customer's customer is happy. Vinasamex's aim is to do business with a social purpose, and I am glad that we have chosen that road. 

Ten years ago, I began doing something so novel that people believed I was insane. However, our unflinching efforts have now been recognized. 

Q: In terms of the road, there may be no straight stretches; there will be times of uphill, downhill, and extremely curving sections. What were the road curves that you and Vinasamex encountered? 

A: The first memorable turn is when exporting directly instead of preliminarily processing and selling to domestic companies. The second turn is building a successful brand in that export market. 

The next curve is to switch from conventional to organic products to enter high-end markets instead of remaining only in traditional markets. For us, this was a 360-degree turn because at that time few people understood what organic was. People don't know what they're doing, they just say they draw stories, teach farmers in the raw material areas, and then work with the government, naturally having plenty of money. If you did those things ten years ago, people would call you crazy. 

However, going back in time, billionaire Jack Ma was also regarded a fiction prior to Alibaba's successful IPO on the US stock exchange and strong firm expansion. Occasionally, in business, something unique, a little strange, a little fantastical is required to break out of one's comfort zone and achieve a breakthrough.

Q: On highways, humans produce bends, but they are also caused by objective factors. Thus, where are the bends necessary to keep up with the market and the times? 

A: In 2011, we started to export directly and built our brand in international markets like India and Bangladesh. With 10 billion VND from previous business projects, we bought goods at the peak price of 120,000 VND/kg. After selling 3 containers with a little profit, the remaining goods have to be kept in storage because India stopped buying. A year later, they bought again but the selling price was only 1/3 of the import price. We suffered a lot.

We were compelled to switch due to an external circumstance. Determination cannot be based on a market that prioritizes price over worth. We must adapt and increase our focus on quality in order to expand our markets and potential clients. 

Then, as the firm grew, new people issues arose, causing us to restructure to meet future objectives. Or, in the manufacturing process, we must spend in research and development to meet our clients' extremely specific criteria while our competitors are unable to replicate. 

The IPO is a "makeover" option for Vinasamex to maximize the value and affirm the position of Vietnamese agricultural products. I want Vinasamex to be the pioneer to beat the first drums to inspire and motivate organic agricultural businesses to dare to be stronger, to think and to do. 

Q: Apart from the bends, pedestrians frequently faced potholes, including elephant holes. Do you frequently come across these issues? 

A: Hugging orders but being not able to sell. We had to go on uneven dirt roads with several potholes and craters in the early days of going deep into raw material areas to develop a value chain with farmers, but not on concrete roads. a time like today. 

There was a time when he traveled over 30 kilometers to reach his target but was forced to circumnavigate another 80 kilometers due to becoming entangled in an elephant nest. We lacked a hotel or motel in the raw material area, and the group frequently had to sleep in their cars.

When we arrived, we were also met with a shake of the head and a gesture of the hand by local authorities, indicating that not everyone is eager to collaborate with us. They did not open their doors to welcome enterprises until later, on directions from the Central and local governments. Farmers, on the other hand, do not believe in a future on terms they have never heard of. They require rapid gratification.

Even now, we still have to continue our journey to create understanding and trust for people. Farmers often want to make a profit at a high price, but they don't understand that it takes us 2-3 years, or even longer, to close an order. While proving our trust to the people, it also took us a long time to build trust with our partners. 

Then comes the equally arduous task of locating a market. In comparison to other nations, Vietnamese businesses suffer numerous constraints when it comes to public relations, marketing, and customer acquisition due to low financial resources and qualifications. Must be extremely persistent in order to locate clients; must "disturb," roll everywhere. Vinasamex exhibits at numerous trade shows each year for this reason. If you want customers, you must pick up your suitcase and leave immediately; you cannot wait for customers. 

My perspective is that after the fair has over, it will return. I will visit supermarkets to ascertain market trends and will spend time and resources visiting the offices of new potential customers who have been contacted previously to meet and introduce items. In my opinion, after the fair has concluded, it will return. I will visit supermarkets to ascertain market trends and will spend time and resources visiting the offices of new potential customers who have been contacted previously to meet and introduce items. 

Q: How do you perceive difficulties and obstacles? 

A: Difficulties shape who you are, and scars shape who you were prior to life. The path to success is never easy. If the success you attain is devoid of difficulties and difficulty, I believe it is something, but not success. 

That is the mindset that enables me to overcome obstacles on my career route, daring to venture outside my comfort zone, and embark on establishing a sustainable value chain with impoverished farmers in Vietnam to manufacture cinnamon products, star anise, and premium organic spices. 

Q: While entrepreneurship has only recently arisen in Vietnam, she began her adventure ten years ago. Was it the visionary's choice or a random stroke of luck? 

A: I don't think it's luck or foresight, what I do comes from myself, inside the desire to do it, seeing it as my mission. 

A vision must be something that is beneficial and desirable. As for luck, it's not quite and no business considers the path of social impact to be lucky while people still don't understand what it is. Ten years ago, I still didn't understand what it was. After participating in CSIP and Oxfam's activities, I realized that "this is me".

Q: There are people who still constantly ask the question "who am I, what am I doing, what is my mission in this life". How did you find your mission and the company’s one? 

A: Perhaps it is by chance, as I am extremely clear about what I want and how to get it in any position. When I want to do something, I always apply my mind to it rather than making decisions only on the basis of logic. The link between the heart and the subconscious enlightens me. Although I occasionally become overly emotional, I believe that the most important thing is to live with emotions, not to suppress them for the sake of a particular gain. 

When you maintain a laser-like focus on whatever you do, you will automatically receive great results. Many businesses struggled two years ago as a result of Covid, yet Vinasamex continued to grow due to two factors. One is that we continue to give our hearts and souls to the business. Second, due to the rule of causality. We are not building the company with the intention of becoming wealthy or purchasing a few cars or houses; rather, we aim to make a positive social impact and improve the lives of all engaged. 

Apart from running the business, I'm also working on personal development projects, one of which is enrolling in a branding course. In a departure from conventional branding, we began by focusing on developing and honing personality. What is beautiful on the outside reflects what is beautiful on the inside. When you are healthy and balanced on the inside, everything will be OK in terms of relationships, finances, and employment. After 10 years, I've noticed favorable changes in my ability to observe myself and sow the good seeds while eliminating the bad ones. 

Q: According to your observations, what do you and the products you make have in common? 

A: Two of the questions I had to answer when building a brand positioning strategy were “If Vinasamex were a human being, what characteristics would you like that person to have” and “If Vinasamex were an animal, what characteristics would you want that person to have?” What animal is it?"

With the first sentence, I want Vinasamex to have the same richness in personality as me. I never stopped coming up with creative ideas. Sometimes I am weak and emotional, but sometimes I am very strong. The product we create through being too hard will not bring emotions to the user, so the brand needs a combination of strength, resilience but also dedication and affection. 

As for the animal, I choose the snake. Snakes are agile, flexible and intelligent animals. Enterprises that want to develop must be flexible to adapt to all circumstances, must have wisdom, draw enthusiasm and experience to aim for a long-term vision.

Q: What about the similarity between you and cinnamon, star anise?

A: Cinnamon and star anise provide not only a means of subsistence, but also have cultural significance and are highly prized in the realm of therapeutic plants. Foreigners admire the quintessential values they bring with them. 

Similarly, I believe that everyone of us contains a gem, a highly valuable diamond, just waiting to shine. I have a goal to create a chance for these quintessential things to shine, and in doing so, I feel the glow of my own beliefs. 

Source The Leader