Most M&A deals create new entities with bigger scale, stronger competitiveness and higher operational transparency. The formation of Suntory PepsiCo Vietnam Beverage (SPVB) marked the success of one of the biggest business cooperation deals in Vietnamese beverage industry between PepsiCo Inc. and Suntory Holdings Limited. Under the leadership of SPVB Executive Chairman Katsuyasu Kato, SPVB is taking the lead in the Vietnamese beverage industry and maintaining double-digit growth.
With long working experience in Japan and the US and 30-year working for Suntory Group, it seems to be an important change to the career of Katsuyasu Kato. Vietnam Business Forum has an interview with him on his feeling when doing business in Vietnam. Huong Giang reports.
As an experienced man, you surely did not see any difficulty when starting an old job in a new place?
It is not really. Like other investors, we face certain difficulties arising from stiff competition from rivals and unfavourable weather when we invest in Vietnam. However, Vietnam is an attractive destination for foreign investors because of its more transparent, clearer, more open and fairer investment environment. Moreover, Vietnam’s beverage sector has maintained a steady growth in recent years. Particularly, this is also a potential market for developing noncarbonated drinks like tea and coffee - the health-boosting products that Suntory Group has rich technology and experience in the Japanese market and other markets around the world. That's why I believe in the success of this market.
How strong is the alliance created by the partnership of Suntory and PepsiCo?
2013 was a difficult year but SPVB still managed to hold a 20 percent plus growth. To have right strategic visions, we always take advantage of platform strengths of both Suntory and PepsiCo, especially in product chain development and diversification, and creatively do our business while respecting and meeting the tastes and needs of Vietnamese consumers. To date, SPVB has 54 product lines, five factories and more than 2,300 full-time employees. We also create indirect jobs for thousands of labourers.
Besides, SPVB is building a good citizen - business model. In 2013, SPVB won the 5th DMK Award - PepsiCo’s annual global recognition of top-performing international companies, and many other prestigious awards like the Unit of the Year, Chairman Award, Harvey C. Russell Award. The company also received many certificates of merit from the General Department of Taxation. Particularly, on June 10, SPVB was honoured to receive the certificate of merit from the Prime Minister for its contribution to the cause of building socialism and defending the nation.
Would you mind talking about secrets to your success when doing business in Vietnam?
I think a business is appreciated when it values human factors. SPVB is one of a few companies in Vietnam using personnel evaluation objectives on par with business result targets. Moreover, training the next leadership always plays a decisive role in business success and development. I think talent training is not only the responsibility of the education sector but also the responsibility of businesses and organisations. Thus, we always support young Vietnamese talents regardless of the fields they are engaged in like intelligence, business or art.
We have carried out education and training support programmes like intern executives, organise competitions and programmes to assist young talent development. This is our long-term commitment: Developing together with Vietnam on a long, very long road ahead."
Many Vietnamese businesses are now shrinking production and investment because of slow sales. Do you have any suggestions for their future?
Each business has its own directions and goals. Right investment and product development to the tastes and needs of consumers will be always the right step for any enterprise. In addition, sustainable development and corporate social responsibility is a trend that most companies are aiming for. Sustainable development will bring many benefits to employees, business partners and the community where the company has business presence.
SPVB aims for beverage revenue of US$1 billion in 2018. SPVB also deploys many pro-community events based on its business philosophy of "sharing profit with the community", particularly in four areas of education - training, healthcare, charity, and water programme and environmental protection.
Recently, we have focused on carrying out and speeding up environmental protection activities together with localities, including the recycling days, environment days, ocean days, and Think and Drink Movement - a campaign that calls consumers to use glass-bottled soft drinks. We believe that, as a model citizen - business, we have the responsibility to contribute to a better life for society and build Vietnam nicer and greener in the far future.
Source: Vietnam Business Forum Magazine
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