GRIGGS UNIVERSITY
GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION

CAPSTONE PROJECT REPORT
BUSNINESS STRTEGY FOR ANVIFISH
2012 - 2016

Group number : 01
Student ' name :
Dao Xuan Kiem - Leader
Pham Viet Thang
Nguyen Quang Huy
Nguyen Van Lap




2012

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LIST OF CONTENTS
INTRODUCTION 4
CHAPTER 1: OVERVIEW OF THEORIES RELATED TO STRATEGIC
MANAGEMENT 6
1.1 An overview of strategic management theory 6

1.1.1 The concept of strategic management 6
1.1.3 Process of Strategic management 8
1.1.4 Tools for strategy formulation and seclection 12
1.2. Overview of pangasius processing and exporting in Vietnam: 15
1.3. The necessary of planning strategy for the Company 21
CHAPTER 2: BUSINESS SITUATION OF ANVIFISH 23
2.1 Overview of Enterprise 23
2.1.1 Foundation and development 24
2.1.2 Organizational structure and Management 27
2.1.3 Main business activities of AVF 29
2.1.4 Technology Capacity 31
2.1.5 Business performance and financial status from 2008 to first half of 2011 33
2.2. Internal Environment 37
2.2.1. Management activities 37
2.2.2. Marketing 40
2.2.3. Finance and Accountant 41
2.2.4. Operation management 44
2.2.5. Research and Development of product (R & D) 45
2.2.6. Information system in the company 46
2.2.7. Core competitive advantages of the company 46
2.3. External environment factors 47
2.3.1 Macro Environment 47


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2.2.1. Competitors 52
2.2.2. Competitors analysis 54

2.2.3. Advantages and disadvantages from macro factors impact on processing
and exporting pangas us 59
CHAPTER 3: BUSINESS STRATEGY FOR VIET AN JSC 2012 -2016 62
3.1 Strategy formulation for AVF 62
3.1.1 Defining strategic targets 62
3.1.2 Strategy implementation schedule 2012 – 2016 62
3.1.3 Formulating and choosing business strategies 63
3.2 Organization solutions to implement selected strategies 75
3.2.1 Financial solutions 75
3.2.2 Solution to operation management 75
3.2.3 Marketing solution 76
3.2.4 Human resources solution 78
PROPOSITION 79
CONCLUSION 80
REFERENCES 81
LIST OF FIGURES
Figure 1.1: The process of strategic management………………………………………………… 9
Figure 1.2: Factors affecting the macro environment………………………………………… …11
Figure 1.3: Model of five competitive forces M. Porter……………………………………………11
Figure 1.4 - Structure of production of aquatic products for export in 2011………………………17
Figure 2.1: Organizational structure and management of AVF…………………………………….28
Figure 2.2: Some main products of Anvifish……………………………………………………….31
Figure 2.3: Manufacturing process of frozen pangasius fillet in block/IQF…………………….….33
Figure 2.4 Chart of quatity and sales of AVF to markets………………………………………… 36
Figure 3.1: Illustration of selected strategy of AVF through SPACE Matrix…………………… 70

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LIST OF TABLES
Table 1.1: Process of strategy formulation…………………………………………………………13
Table 1.2 : Internal – External Matrix…………………………………………………………… 14
Table 1.3 : Competitive Image Matrix…………………………………………………………… 15
Table 1.4: SWOT Matrix………………………………………………………………………… 15
Table 1.5 - Statistical pangasius export value in markets 2009-2011…………………………… 18
Table 1.6 - Top 20 importing markets in 2011 in term of growth……………………………… 19
Table 1.7 - Top 20 importers of pangasius in 2011……………………………………………… 20
Table 2.1: List of some certificates and awards of AVF………………………………………… 26
Table 2.2: Sales of AVF from 2008 to 2011 …………………………………………………… 30
Table 2.3 - AVF’s performance during period of 2009 - 2011…………………… …………… 34
Table 2.4 - VAF’s business performance changes over years…………………………………… 34
Table 2.5 - AVF’s Expense/net revenue changes over years…………………………………… 35
Table 2.6 – export sales in markets…………………………………………………………… 36
Table 2.7 - List of some members of AVF’s Board of Directors……………………………….…38
Table 2.8 - Labor resource by qualification of AVF (2009-2011)……………………………… 41
Table 2.9: Cash flows in brief of AVF 2008 – 2010…………………………………………… 42
Table 2.10: Typical financial ratios of AVF …………………………………………………… 43
Table 3.1: The strategy implementation schedule of AVF 2012 – 2016………………………….63
Table 3.2: External Factors Evaluation matrix ……………………………………………………63
Table 3.3: Image competition matrix for AVF…………………………………………………….65
Table 3.4: Internal Factors Evaluation matrix for AVF ………………………………………… 65
Table 3.5: SWOT Matrix for AVF……………………………………………………………… 66
Table 3.6: SPACE matrix of Anvifish…………………………………………………………….69
Table 3.7: Internal – Extenal Factor Matrix……………………………………………………….70
Table 3.8: alternative strategies conclusion……………………………………………………….71
Table 3.9 : QSPM matrix – Group of centralized strategies………………………………………71









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INTRODUCTION
In recent years, seafood export is one of the strengths of Viet Nam, contributting
from 3.5 % to 4% of GDP, creating jobs for over three million people and is one of
three largest export industries in term of value, just following crude oil and
garments.
In the period from 2006 to 2011, fishery was one of highest growing industries of
Vietnam, at about 15%. In 2010, marine foods export value of Vietnam was over of
$ 5 billion and that is expected to reach about $ 6 billion in 2011.
For exported seafood products, pangasius fillets could be seen as one of the staples,
accounting for about 28 % to 30 % of total seafood export value, being exported to
about 136 countries in the world. This product is considered as potential field that
opens up many opportunities for the fishery exporting companies.
Besides these achievements, the companies processing and exporting pangasius has
been facing to many difficulties and challenges from the subjective and objective
factors such as: the volatility of raw materials due to environmental pollution,
disease outbreaks; workers are not stable due to competitiveness of internal
industrial enterprises; increase in barriers from foreign markets, especially the U.S.
and EU; competition among the peers and so on…
As a fishery processing and exporting company, ranked in the top 10 fishery
exporters of Vietnam in term of export value, Viet An Joint Stock Company is
headed for many opportunities and challenges. Therefore, formulating "business

strategy period 2012 - 2016" is very necessary to promote the strengths and limit
weakness, seize opportunities and avoid threats from the external factors in the
future.
- Objectives and methods of the study
Based on the theories from Strategic Management subjects that will be applied in
practice to analyze and evaluate internal and external factors and competitive
environment among the peers, our group formulated the business strategy as well as
measures to implement the strategy for the company during the period from 2012 to

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2016 with the expectation it will be a useful reference document for AVF in
formulating it’s business strategy in coming years.
- Research Methods:
We use two methods of qualitative and quantitative, based on internal documents,
financial statements provided by the AVF, market research, forecast of fishery
development potential by experts as well as local and foreign organizations. For this
report, we also use the documents from websites publishing by General Statistics
Office, General Administration of Customs, and Seafood Association of
Vietnamese.
- The structure of this thesis includes 03 chapters
 Chapter 1: An overview of theories related to strategic management.
 Chapter 2: Business situation of Viet An Joint Stock Company (AVF).
 Chapter 3: Strategic business formulation for AVF 2012 to 2016













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CHAPTER 1: OVERVIEW OF THEORIES RELATED TO
STRATEGIC MANAGEMENT
1.1 . An overview of strategic management theory
1.1.1 . The concept of strategic management
Strategic management is concerned with providing a purpose in order to establish
the way forward for the organization. It involves creating a sustainable competitive
advantage for the organization.
1.1.2 Classification strategy
1.1.2.1. Classification of specific strategies
According to Fred R.David, it is possible to divide strategies into 14 types of typical
strategies and 04 groups as follows:
 Integration strategy group
- Forward integration: this type is related to the increase of ownership or control
to distributors or retailers. An effective method to implement this combination
strategy is transfer of right. The enterprises can develop rapidly through transfer
of right since the cost and opportunity are divided to many individuals;
- Backward integration: this type is related to the search for ownership or control
of company’s suppliers. This strategy is especially suitable when the current

suppliers of the company are not reliable, expensive or fail to satisfy the
requirements of the Company;
- Horizontal integration: this strategy is related to the discovery of ownership or
control to rivals. The merging, acquisition helps to improve the effectiveness of
the scope, and increase the exchange of resources and capacity.
 Intensive strategy group
- Market Penetration refers to the search for additional market shares for current
products and services in the existing markets through marketing efforts. Market
penetration includes the increase of sales staff, advertisement cost, production
products or advertisement efforts;

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- Market Development refers to the launching of existing products and services to
new sectors;
- Product Development refers to the increase of turnover by the improvement or
adjustment of existing products or services. Product development requires high
research and development cost.
 Expansion strategy Group
- Diversification of concentric activities means the addition of new but interacted
products or services;
- Diversification of activities in horizontal manner means the addition of new
products and services those have not relation for existing customers;
- Diversification of activities in combined manner means the addition of new
products or services without interaction.
 Other Strategy Group
- Joint venture: two or more companies form an independent company for
cooperative purposes;

- Operation contraction refers to the consolidation through cost and property cut to
save the dropping revenue and profit;
- Activity cut-down refers to the selling of a branch or a part of the company;
- Liquidation means the selling of all the properties, partially, with tangible
values;
- Combination pursues two or many strategies at the same time.
1.1.2.2. Michael Porter 's perspective on the typical strategy
According to Porter, typical strategies enable company to get competitive
advantages from three different aspects:
- Cost strategy refers to the manufacturing of standardized products at low unit
price for price-sensitive customers;
- Differentiation refers to the strategy aiming at the production of service
products considered as specific in the sector for customers those are not
sensitive to the price;
- Focus on the main point refers to the production of products and services to
meet the demands of small groups of customers;
One reason for pursuing forward strategy, backward strategy or horizontal strategy
is to gain the benefits of price orientation.

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Product development is a typical strategy with many advantages for the product
distinction (differentiation strategy). The successful product distinction means the
higher product flexibility, greater combination ability, lower cost, improved
services, fewer maintenance, more comfortableness, or more specific traits.
The strategies such as market penetration, market development provide much
advantage.
1.1.3 Process of Strategic management



Figure 1.1: The process of strategic management



















1.1.3.1 Strategy formulation
Feedback information
Thiết lập mục
tiêu dài hạn
Lựa chọn các
chiến lược để
theo đuổi
Xác định

nhiệm vụ
mục tiêu và
chiến lược
hiện tại
Thực hiện việc
kiểm soát bên
ngoài để xác
định các cơ
hội và đe dọa
chủ yếu
Xét lại
mục tiêu
kinh doanh
Thực hiện
kiểm soát nội
bộ để nhận
diện những
điểm mạnh
yếu
Phân phối
các nguồn
tài nguyên
Đo lường
và đánh giá
thành tích
Thiết lập
những mục
tiêu hàng năm
Đề ra các
chính sách

Thông tin phản hồi
Feedback
Establish long-
term objectives
Select the
strategies to
pursue
Identify the
target tasks
and current
strategies
Implement the
external control
to identify the
main
opportunities
and threats
Review
business
objective
Implement
internal
control to
identify the
strength and
weakness
Distribute
natural
resources
Measure and

evaluate
achievement
s
Establish annual
objectives
Propose policies
Feedback
Strategy
development
Strategy
implementation
Strategy
evaluation

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Strategy formulation is a process that includes defining the tasks, the current
strategic objectives, analyzing the context of the internal & external elements of the
business and then making plan a strategy for the company appropriate to the context
analyzed. The result of this process will show the company decided to participate/
not participate in the field of business/geographical area, how to allocate their
resources; should extend/ shrink operation; associated or not associated with a
partner ?
1.1.3.1.1 Identify strategic objectives
Identifying strategic objectives is to analyze and point out the mission - the vision
and long-term goal of offering the business. To build strategic objectives and tasks
of the planners of the business strategy must answer the question: Our enterprise
operate in what, our business bring and benefits to whom, how we can satisfy the

interests of the people involved and what we will become in the future. These issues
are critical and considered as guidlines for all activities of the business in the future.
1.1.3.1.2 Analysis of external environment
Analyzing the external environment is to focus on the identification and evaluation
of external factors to find out what opportunities and threats from these factors to
the operation of the business in order to devise appropriate strategies for the
enterprise to respond to the changes of these factors. The analysis of the external
environment can be done by analyzing the macro environment and industry
environment.
 Macro environment analysis
The changes in the macro environment possibly impact on any certain forces in
the industry and alter the attractiveness of an industry. Macro environment
consists of 6 segments: economy, social culture, demography, political law,
technology and global.

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Figure 1.2: Factors affecting the macro environment
 Analyzing the industry environment (micro-environment)
According to Michael Porter , there are five competitive forces oriented within
the sector are: (1 ) the risk of entry of new companies , (2 ) the degree of
competition among existing companies in the industry , (3) bargaining power of
buyers , (4) bargaining power of sellers ; (5) threat of substitutes.

Figure 1.3: Model of five competitive forces M. Porter
 Competitive pressures of the suppliers with the basic elements:


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 The quantity and scale of suppliers;
 Product substituting ability of suppliers;
 Information about suppliers.
 Competitive pressure from customers
Customers are classified into 2 groups as other retail and distributors. Both
groups put pressure on companies on price, product quality and service come
and it is they who control the industry through competition in the purchase
decision.
 Competitive pressure from potential rivals
According to M-Porter, the implicit rivals of the enterprises have not appeared in
the sector market but can influence the sector in the future.
 Competitive pressure from substitute products
Substitute products and services refer to those can satisfy the similar demand of
customers for products and services in the sector.
 Competitive pressures of the industry internal
The enterprises in the sector will compete directly with each other to create the
pressure on the sector and form the competition intensity. Following factors of
the sector will increase pressure on the rivals:
 Sector situation;
 Sector structure.
1.1.3.1.3 Analysis of internal company environment
This is a process of evaluation of all the main functional operations of a company
such as administration activity, marketing, finance – accounting, product research
and development, etc… in comparison to the peers of the company. The purpose of
that is finding out the strengths and weaknesses of the company in combination with
the results of external analysis to formulate business strategy for the company.

1.1.3.1.4 Strategy formulation and selection
In regarding to build up long term objectives of the company, formulate transferable
strategies, and pick up the reasonable business strategies to follow. All the process

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is implemented with the tools of analysis, evaluation and selection and the point of
views of strategy maker included.
1.1.3.2 Strategy implementation
The process of specifying the selected strategies, defining appropriate policies for
strategies implementation, allocating all necessary resources to ensure that strategic
objectives are achieved
1.1.3.3 Evaluation and adjustment of strategy
In fact business environment is always changing; our forecast of internal and
external factors impacting on the process of formulation strategy is possibly not
accurate. Accordingly, Once the selected strategies are implemented, the
performance of that should be measured and evaluated. In needed the strategy
adjustment must be done in the way that fit to the changes in business environment.
1.1.4 Tools for strategy formulation and selection
According to Fred R. David, the strategy formation includes 3 stages including
penetration, combination and decision:
Stage 1: Penetration
External Factor
Evaluation (EFE)
Competitive image matrix

External Factor Evaluation
matrix (IFE)

Stage 2: Combination
Strength-
Opportunity- Threat
(SWOT)
Strategic point
and action
evaluation
(SPACE)
Boston
consulting
group (BCG)
Internal –
External
matrix (IE)
Grand strategy
matrix
Stage 3: Decision
Quantitative strategy planning matrix (QSPM)
Table 1.1: Process of strategy FOemulation
1.1.4.1 Internal factor evaluation Matrix (IFE)

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External Factor Evaluation enables strategists to summarize and evaluate economic,
cultural, social, demographic, geological, political, government, technological and
competing information.
1.1.4.2 External factor evaluation Matrix (EFE)
External factor evaluation Matrix (EFE) allow summarizing and evaluating of

economic information, social, cultural, demographic, take reasonable, politics,
government, law, technology and competition, how to impact to business, aims to
establish the appropriate business strategy for enterprise.
1.1.4.3 Internal - External Matrix (IE)
IE Matrix (Internal – External Matrix) set the difference SBU (Strategic Business
Unit) of company into the table with 9 cells. IE Matrix is based on two main aspects
as follows:
- Total significant scores of IFE matrix is shown on the X axis , and
- Total significant scores of EFE matrix is shown on the Y axis.
Each SBU must to establish IFE and EFE matrix, thereby setting IE matrix of the
business. On the X axis of the matrix IE, showing the total number of critical points
IFE matrix. Similarly, on the Y axis of the matrix IE, showing the total number of
critical points of the matrix EFE:

Total
significant
scores of
EFE
matrix
Total significant scores of IFE matrix

Strong
3,0 – 4,0
Medium
2,0 – 2,99
Low
1,0 – 1,99
Strong
3,0 – 4,0
I

II
III
Medium
2,0 – 2,99
IV
V
VI
Low
1,0 – 1,99
VII
VIII
IX
Table 1.2 : Internal – External Matrix
Based on IE Matrix, we can be divided into three major sections; each section
includes the following different strategies:
- SBU located in the cells I, II and IV that suggests the grow and build strategy.

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- SBU located in the boxes III, V and VII, that suggests hold and maintain
strategy, market penetration and product development are two appropriate
strategies in this case.
- SBU located in cells VI , VIII and IX: suggested strategies are harvest and
divest.
1.1.4.4 Competitive image Matrix
Competitive image matrix helps a company to identify the competitors, and their
strengths, and weakness in comparison with its self in the process of strategy
formulation.

No
Weight
Strategy 1
Strategy 2
Strategy 3
Rating
Score
Rating
Score
Rating
Score
List the
factors







Total scores







Table 1.3: Competitive Image Matrix
1.1.4.5 Strengths - Weaknesses - Opportunities – Threats Matrix (SWOT)

SWOT Matrix is a tool that combines the strengths (S), weaknesses (W),
Opportunities (O) and threats (T) to give the following four strategic:

S
List all strengths
W
List all weaknesses
O
List all Opportunities
Combination of S-O
Combination of W-O
T
List all Threats
Combination of S-T
Combination of W-T
Table 1.4: SWOT Matrix
1.1.4.6 Strategic position and action evaluation Matrix (SPACE)
Strategy position and action evaluation matrix is used to evaluate the operation of
the business, and determine the location of the business in the market. The axis of

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this matrix represents the two aspects within the organization: financial strength
(FS) and competitive advantage (CA) and two outside business aspects:
environmental stability (ES) and strength of the sector (IS).
1.1.4.7 Quantitative strategic planning matrix (QSPM)
QSPM aims at evaluating and ranking of strategic options that help to select the
most reasonable strategies for the enterprise. QSPM uses the outputs in relation to

each other from EFE matrix, Competitive image matrix, IFE matrix, SWOT matrix,
Space matrix, IE matrix. This is the tool to carry out objective evaluation of
alternative strategies, which is firstly based on the internal and external factors to
success.
1.2. Overview of pangasius processing and exporting in Viet Nam:
Vietnam is considered as one of nations having the fastest fishery export growth in
the world, with an average growth rate of the period 2001- 2010 was 15%.
According to FAO, Vietnam was ranked the fifth in the list of the seafood exporter
in the world and was the third on aquaculture production. Fishery is one of the key
export sectors of Vietnam, contributing 3.5% to 4% GDP, next only to crude oil,
coal, textiles, reached 3.74% GDP in 2010.
The revenue of exported seafood of Vietnam in 2011 reached 6.1 billion USD, up to
21% compared with that of 2010 and more three times than 2002. In which the
value of exported pangasius reached 1.805 billion USD, increased nearly 26.5% and
With export volume of over 600,000 tons.

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Figure 1.4 - Structure of production of aquatic products for export in 2011
According to VASEP, currently there are more than 200 enterprises engaged in
processing and exporting pangasius. However, 10 leading enterprises in Vietnam
has occupied 40% of the total seafood export value in which Vinh Hoan Seafood
Joint stock company accounts for 8%, Hung Vuong Seafood Company is over 7.2%,
AGF is about 4.55%, AVF is 4.13% and other companies are from 2.2% to 2.8%.
Most of these companies have their own aquaculture areas and factories in the
Mekong Delta. Besides focusing and concerned in quality of product, process from
aquaculture to processing and packaging to meet the stern requirements of strict

markets of the US and Europe, they also have paid attention to quality control in
response to non-tariff barriers from the market. However, among 200 enterprises
engaged in processing and exporting seafood, there are over 100 enterprises operate
with capacity from 40% to 50% of the design capacity. The main reason stems from
unstable input resources and strong increase in input price that make them difficult
for manufacturing. In addition to the weak financial capacity, inadequate working
capital for production has led them to much more using borrowing capital from
credit institution causing their high risk of finance.
Exported seafood structure in 2011
(GT)
Mollusc
10,0%
Other crustaceans.
1,8%
Shrimp
39,8%
Catfish
30,0%
Tunny
6,3%
Others
12,1%
Source: Pangasius-vietnam.com

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Major products of most Vietnam pangasius export companies are fillets with various
types. These companies still haven’t had the differentiation in their products, even

for some leading firms such as HVG, AGF. However, in recent years, some
companies have initially implemented product diversification by producing value-
added products such as rolled fillets, breaded pangasius slice, skewered fish But
the contributions to revenue and profit from the products are still low.
Table 1.5 - Statistical pangasius export value in markets 2009-2011
Unit: 1000 USD
Markets
2009
2010
2011
EU
538,798
511,007
513,845
Spain
121,122
120,177
108,860
Germany
108,945
91,553
88,426
Netherlands
67,831
75,883
88,046
Poland
48,927
43,399
36,006

U.S.A
134,007
176,627
331,697
ASEAN
88,847
78,557
110,852
Singapore
26,312
26,376
36,633
Thailand
24,495
16,121
22,022
Malaysia
15,062
15,582
21,447
Mexico
72,047
86,288
109,048
Russia
64,389
51,560
51,833
Egypt
43,957

43,878
37,767
Australia
36,667
43,022
53,278
CHINA VÀ HK
35,126
42,941
55,488
Hong Kong
31,898
33,293
39,153
China
3,228
9,648
16,335
Other markets
329,079
393,616
541,850
TOTAL
1,342,917
1,427,496
1,805,658
Source:





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Table 1.6 - Top 20 importing markets in 2011 in term of growth
N
0
Market name
2010 (USD)
2011 (USD)
YoY (%)
1
Tagikitxtan
47,384
669,294
1,412.50
2
Uganda
16,622
135,000
812.20
3
Trinidad and Tobago
74,960
379,374
506.10
4
Equatorial Guinea
136,281

542,944
398.40
5
Bahamas
59,170
230,349
389.30
6
Sri Lanka
80,751
234,500
290.40
7
Gabon
949,612
2,374,980
250.10
8
Nigeria
41,233
95,000
230.40
9
Adecbaidan
1,586,604
2,947,910
185.80
10
New Caledonia
115,256

213,339
185.10
11
Piton
90,050
163,530
181.60
12
Peru
5,233,493
8,446,858
161.40
13
Angola
375,672
581,165
154.70
14
Ghana
157,537
238,196
151.20
15
Brazil
56,726,683
84,522,758
149.00
16
India
4,852,097

7,118,027
146.70
17
Bermuda
420,413
610,019
145.10
18
Polynesian
170,117
217,409
127.80
19
Chile
5,969,090
7,461,362
125.00
20
Reunion
630,807
733,628
116.30

Source:











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Table 1.7 - Top 20 importers of pangasius in 2011
No.
Markets
Value (USD)
Proportion (%)
1
U.S.A
331,696,901
18.37%
2
Mexico
109,048,276
6.04%
3
Spain
108,859,759
6.03%
4
Germany
88,425,976
4.90%
5

Netherlands
88,046,859
4.88%
6
Brazil
84,522,758
4.68%
7
Saudi Arabia
58,566,643
3.24%
8
Australia
53,278,342
2.95%
9
Colombia
52,293,299
2.90%
10
Russia
51,832,653
2.87%
11
Canada
43,981,608
2.44%
12
Hong Kong
39,152,888

2.17%
13
Egypt
37,767,208
2.09%
14
British
36,991,039
2.05%
15
Italy
36,671,617
2.03%
16
Singapore
36,632,646
2.03%
17
Poland
36,005,979
1.99%
18
Ukraine
32,809,336
1.82%
19
Belgium
30,877,890
1.71%
20

UAE
30,529,193
1.69%

Total
1,387,990,870
76.87%
Source:
For importing markets, The EU is the largest importer of pangasius of Vietnam.
However, the value of pangasius exports to this market is saturated. In 2011, the
value of exports to this market virtually increased in comparison to that of 2010,
reached nearly 514 million USD. The US. market is the next, value export to this
market was up to nearly 332 million USD in 2011, with growth of over 88% yoy.
We suppose that in the near future, the US. will remain the potential for pangasius
exporter of Viet Nam's.

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In an effort to diversify in order to limit risks from the EU and US. markets,
recently, the exporters in Vietnam have made their efforts to develop importing
markets, especially South America markets such as Brazil, Mexico. In 2011, the
value of exports to the two markets were 84 million USD and 109 million USD
respectively. According to experts, these markets will be considered as the potential
of pangasius processing and exporting in Viet Nam in the future.
Production and export value of pangasius have had significant growth over the
years, with growth in the period from 2006 – 2010 were respectively of 14% and
15%. Due to the forecast of experts, fishery industry in general and pangasius
processing and exporting will remain the development potential in coming years

with some reasons as followings:
• The worldwide demand for seafood consumption is expected to continue
increasing. It is stemmed from decrease in substitute’s resources supply caused
by the disease of poultry and cattle, particularly tendency of fishing limitation to
protect the ecological environment of countries all over the world.
 The Government is continuing to offer preferential policies for developing
fishery industry. The activeness of the marine associations such as VASEP,
Vietnam Pangasius Association will support enterprises, especially give the
options to promote cooperation among enterprises to limit the competitive price
as before.
 The economic growth in new developed countries like China and India will
increase long-term demand for seafood products in general and pangasius in
particular.
 Vietnam’s pangasius products haven’t been diversified, great demand of value
added products in the global market are not met that will bring in many
opportunities for fishery companies in the future.
Besides the opportunities, the companies of Vietnam have continued to face
enormous challenges from many different causes:

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 In recent years, the very fast growth of the fishery industry, the lack of
aquaculture planning have poisoned the ecological environment. These facts
have been negatively impacting on the fishery development of Vietnam.
 The increase in the price of raw materials, borrowing cost, financial difficulties,
limit of loans from banks… have pushed many families feeding pangasius into
giving up their business. Accordingly the competition among the peers in
acquiring the inputs for their production likely make the price increase.

 The unstable status of labor forces has badly affected the activities of fishery
processing companies.
 The increase in the market barriers such as anti-dumping tax, technical barriers,
sanitary and food safety, especially policies to protect the ecological
environment throughout the world are commonly applied that will make many
challenges for exporters of Vietnam.
 The risks from the importing markets: Recently, the pangasius exported to EU
and US has accounted for about 48% of that of Vietnam in term of value as well
as quantity. However, the governments of these countries often issue new
barriers to limit the import of fishery products in general and pangasius products
in particular from Vietnam. Therefore, all exporters of the markets are always in
the state to deal with these risks.
From the above analysis, it shows that in the coming years, processing and
exporting pangasius products will have much potential to develop. However, the
companies in this field will continue to face many risks from many factors.
Therefore, to succeed, it is required all the companies must have appropriate
strategies to capture new opportunities as well as to cope with negative
influences arising from their business activities.
1.3. The necessary of planning strategy for the Company

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Viet An Joint Stock Company (AVF) is one of the 04 leading pangasius exporters in
Vietnam. Its export value accounts for over 4% of export value of the national
pangasius export value.
As many companies operating in fishery, in addition to the impact of the internal
factors, AVF has been also facing the opportunities and challenges under the
influence of macro factors, the weaknesses from the marine products industry in

general and pangasius in particular.
So, to cope with changes from markets, to promote the strengths as well as to limit
weaknesses to increase the business efficiency in the coming years, formulating the
business strategy is essential. It allows orienting enterprises as well as giving clear
solutions so as to make companies develop sustainably.
















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CHAPTER 2: BUSINESS SITUATION OF ANVIFISH
2.1 Overview of Enterprise
 Company name: Anvifish Joint-Stock Company.
 Abbreviated: Anvifish Co.
 Logo :


 Address: National Road 91, Thanh An Village, My Thoi Ward, Long Xuyen
City, An Giang Province.
 Tel: (0763) 932 545 - Fax : (0763) 932 554
 Website : www.anvifish.com - Email :
 Business Registration Certificate No.: 1600720555, first registration dated
27/02/2007 issued by An Giang Department of Planning and Investment, and
the second dated 21/12/2009 and the third dated 26/08/2010.
 Tax code : 1600 720 555
 Chartered capital : VND 225.000.000.000
 Scope of business: Specialized in processing and exporting frozen aqua-
cultural products. The main products of the company are Pangasius section
such as pangasius fillet, pangasius fish slice, slice fillet many other kinds of
product.
 Branch in HCMC:
Address: 34 Phan Dinh Giot, Ward.2, Tan Binh District, HCMC
Tel: (84-8) 3848 7358 - Fax: (84-8) 3848 7357
Main function: Marketing, widening Europe, America, Russia and Mid-West
markets. It is organized with 3 functions including marketing, documentation
for export and goods delivery.

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 Subsidiary Company:
ANPHA-AG is only subsidiary of the company being in charge of managing
and exploiting frozen storage system including 06 storages with capacity of
3.500 tons per storage. The company has plan of raising total storage
capacity up to 40.000 tons in upcoming time.

 Associated company:
Viet An associates with loyal customers in America and Europe to establish
Anvifish-Australia, Anvifish-Europe in order to penetrate these markets.
2.1.1 Foundation and development
Precursor of Viet An JSC was AN GIANG – BASA Co, Ltd, established in August
2004. In Feb 2007, the company was transferred into formation of Joint Stock
Company with the name of Viet An Joint – Stock Company.
After 7 years operation and development, the company has been defining its
position on the export market and becoming one of the biggest companies in Viet
Nam in the field of exporting frozen aqua – culture products. Its proportion of
exported pangasius value has been accounting for more than 4% of Vietnam
pangasius export with annual revenue estimated at USD 60 million and 25.000 tons
in term of volume.
 Some highlight achievements of AVF
 In 2008, AVF was imposed anti-dumping duty of 0% on American market while
many other fishery companies had to bear the rate of 63.88%.
 AVF has distribution networks with more than 100 big clients, especially some
of them own supermarket and agency system in Europe and America.
 AVF is one of the biggest enterprises in Viet Nam in the field of proccessing and
exporting Pangasius, it has 02 factories with total capacity of 250 tons/day and
aqua-culture areas of 123 hectares (01 area of AVF and 05 associated areas).
Recently, AVF has invested in new area of 100 hectares in order to be active in