Why does the cashew king want to sell the company?

Vietnam's cashew industry is going through major changes and its position as the world's number one cashew nut processor is gradually being shaken. Meanwhile, the fastest growing and most stable enterprise in the cashew industry today, Long Son Joint Stock Company, is planning to transfer shares. Thanh Nien talked with Mr. Vu Thai Son about this plan.

Processed cashew export orders are increasing again

-How is the current business situation of Long Son company, sir?

*I have been working in the cashew industry for more than 30 years, working with pioneers of the Vietnamese cashew industry since the early days such as Mr. Ho Ngoc Cam, Mr. Nguyen Thai Hoc, Mr. Nguyen Van Lang (those in the first executive committee of the Vietnam Cashew Association - PV). The cashew industry has gone through many ups and downs, but I am lucky to have been able to survive until now. It is true to say that Long Son is the largest Vietnamese cashew company at the present time, but it is impossible to say that Long Son has the ability to control the market. No one has the ability to dominate the cashew industry, even when Long Son cooperated with Olam, a multinational company with very strong potential, it only accounted for about 17% of the total output of processed cashew nuts. Up to now, Long Son has separated, accounting for only about 5% of the output.

-The cashew industry has faced difficulties in the past 3 years. Has the situation improved now, sir?

*Regarding the world's consumption demand, countries that use a lot of cashew nuts such as the US and Europe have started to increase purchases again at the end of the year. At present, my factories have to operate at full capacity, workers have to work overtime to meet the delivery schedule. Currently, I have a very large order from the Walmart supermarket chain (US) but I am considering it because I am afraid I will not be able to meet it.

Regarding the efficiency of domestic enterprises, the past 3 years have been a very formidable purge. Many enterprises have gone bankrupt, many factories have closed, and many people have been involved in legal problems due to violations of tax and import-export regulations. In that context, the cashew raw material area is also facing competition and shrinking area due to other crops that are more economically efficient. In general, the Vietnamese cashew industry may face difficulties in the coming time if domestic enterprises do not unite to regulate the import price of raw cashew materials and the price of processed cashew nuts.

The cashew industry may face difficulties in the coming time if domestic enterprises do not unite to regulate the import price of raw cashew materials and the price of processed cashew nuts.

- You just said the company has a lot of orders and can't keep up with the work, but I heard you want to sell the company, why is that?

*Vietnam's cashew processing technology is a strength that no other country can compete with. Even now, when African countries start to boost processing, the technology is still not complete and it will take a long time to catch up with Vietnam. I intend to find a foreign partner to transfer shares because I need inheritance for development. My children have a stable life, have their own direction and no one pursues the passion for the cashew industry. My wife is a teacher, has a traditional mindset, and wants me to spend more time with the family. I have spent too much time in the cashew industry so I want to rest.

- He also just started building a cashew processing factory in Africa with many plans, then suddenly sold the company to take a break, it sounds contradictory...

*There is no contradiction. The project to build a cashew processing factory in Africa can be said to be an important milestone in my career. Before now, there were many businesses that went ahead, loudly declaring about cashew projects abroad, but then no one could do it. Long Son's cashew processing factory in Ivory Coast is a promise and can be done, I have started construction and is implementing on schedule, about 1 year later it will start operating. As for me wanting to sell the business, it is also very normal in this day and age. Usually, when another partner participates, I still retain a certain amount of shares and will continue to operate and carry out the ongoing projects for a while before withdrawing completely.

-Have any businesses been interested in Long Son, sir?

*Currently, there are some Korean and Chinese partners interested. They value my business at about 70 million USD, but I have not agreed yet.

-So how much do you want?

*About $72 million, I think that price is reasonable.

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