Tan Hiep Phat - 30 years of perseverance and breakthroughs

Overcoming challenges, many beverage businesses have affirmed their breakthrough with synergy coming from a chain of links that have been persistently built over decades.

In Vietnam, beverages have become an important economic sector, making a contribution to the socioeconomic development of the country. The Vietnam Beer-Alcohol-Beverage Association (VBA) said that with factories spreading across the country, the beverage industry contributes VND60 trillion ($2.4 billion) to the state budget every year. Beverage companies are among the top taxpayers to the state budget and play an important role in developing the local production-trade-service ecosystem.

With large investment capital and a long-term vision, the beverage industry has contributed to creating direct and indirect jobs for millions of workers in manufacturing facilities, supply chains, and services. At the same time, the beverage industry is a pioneer in the circular economy, green manufacturing, and social services. Overcoming many internal difficulties and competitive pressures, Vietnamese businesses have left their mark on the map of the global beverage industry.

"Besides effective business activities, Tan Hiep Phat is a pioneer in promoting the development of the industry as well as community development and social security programmes," said Chu Thi Van Anh, vice chairwoman cum general secretary of the VBA.

Domestic enterprise strives to promote industry

Since its establishment, Tan Hiep Phat has been well aware of the values ​​that benefit consumers and has persistently pursued the mission of producing and trading high-quality, healthy products that not only comply with international standards. Therefore, the domestic company has made heavy investment in modern technology for its production process from input materials to product distribution to ensure product quality and long-term competitive advantage.

Tan Hiep Phat is the first and only beverage firm in Vietnam to own 12 aseptic lines, with a total investment of $300 million. This is the most advanced production line of sterile technology, developed based on the main principle of running an automatic and closed process from extracting raw materials, blowing bottles, filling, capping, and labelling, to packaging to create products for the sake of the consumer health.

This aseptic technology helps retain nutrients while retaining their natural colour and flavour, all without preservatives. With modern technology, Tan Hiep Phat's beverage products meet all strict product quality control requirements to be present in over 20 countries, including demanding markets such as the United States, Canada, Germany, Japan, and Muslim countries. This has shown the spirit of “nothing is impossible” of a 30-year-old Vietnamese enterprise. When there is a goal, there will be a solution.

Since 2013, Tan Hiep Phat has implemented a circular economy model of reducing, reusing, and recycling. This, coupled with the aseptic technology, has helped the company to achieve impressive results, make an important contribution to reducing environmental impacts, and support the government's net-zero emissions goal.

In particular, the company has implemented its lightweight bottle project, where each bottle's weight was reduced by nearly 20 per cent. From 2014 to 2023 alone, a total of 78,000 tonnes of plastic was eliminated. At the same time, thanks to the investment in aseptic technology, the company has reduced the loss rate in its production process and saved on electricity and water use.

To achieve impressive results and contribute to the overall development of the industry, this domestic enterprise has constantly developed and expanded a chain of links covering hundreds of thousands of partners, distributors, and workers in production.

Strong links in production and business

Currently, Tan Hiep Phat is the only domestic beverage company that owns four factory clusters in the country. From the first factory cluster covering 110 hectares in Thuan An city, Binh Duong province, the company has expanded with Number One Ha Nam Factory, Number One Chu Lai Factory (Quang Nam), and most recently Number One Hau Giang Factory. With ongoing investment and expansion, Tan Hiep Phat has contributed to creating jobs for tens of thousands of direct and indirect workers, contributing thousands of billions of dollars to the state budget.

Over three decades of development, Tan Hiep Phat has created a network of hundreds of thousands of partners, including domestic and foreign suppliers and distributors. Thanks to the link with suppliers, the company not only creates high-value orders for raw material areas but also invests in machinery and technology, creating a sustainable supply chain.

Tan Hiep Phat also spends thousands of billions of VND to source agricultural products in compliance with strict quality control processes from crops to harvesting and processing to create products that are beneficial to consumers' health.

Tan Hiep Phat has succeeded in tightening the bond with farmer households through projects that create sustainable values. At the same time, the company is also constantly strengthening cooperation with partners in developing production technology to create quality beverage products and contribute to environmental protection for sustainable development.

As of the present, Tan Hiep Phat has cultivated partnerships with over 700,000 domestic and foreign partners who enjoy guaranteed benefits and stable profits across the supply chain. During the most difficult economic periods, Tan Hiep Phat has strived to support distributors and agents with many solutions, such as maintaining stable selling prices as well as diversifying promotions. This aims to create a synergy of strength to overcome challenges.

The company's strength also lies in the contribution of more than 4,000 direct workers at four factory clusters nationally. Corporate social responsibility is one of the seven core values ​​that Tan Hiep Phat's leaders and employees focus on. The company has made efforts to realise its core value, contributing to the development of the economy in general and the beverage industry in particular.

The beverage industry is maintaining its growth trajectory with several opportunities for domestic businesses. They can reach out to the world if they know how to take advantage of opportunities and penetrate export markets. With a strong chain of links built and constantly reinforced, Tan Hiep Phat is gradually realising the goal of becoming Asia's leading food and beverages corporation.

"As a pioneer in discovering the nature-based beverage industry, Tan Hiep Phat not only affirms its position in the Vietnamese market but also extends its reach to the international market. The company plays an important role in leading the market with new trends as well as inspiring other Vietnamese businesses to confidently reach out to the world," the VBA's Van Anh said.

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