In line with its corporate vision to become the leading digital conglomerate in the Philippines with a strong regional presence, JG Summit Holdings is ramping up investments both in the country and beyond. Across Asia, its growing regional footprint comes mainly from two of its business units, URC and Cebu Pacific.
URC today is one of the largest snack-foods and beverages players in the ASEAN and Oceania regions, operating in key markets such as Australia, New Zealand, Thailand, Vietnam, Indonesia, Malaysia, Myanmar and China and with sales/marketing offices in Hongkong and Singapore. In 2018, its BCFG International division contributed Php43.2 billion in revenue, or 34 percent of the company’s gross revenue of Php127.8 billion. The division also generated 3.7 billion in operating income, 18.8 percent higher than the 3.1 billion posted in 2017.
Through URC Vietnam, the conglomerate has become one of the biggest foreign investors in the country. Cebu Pacific on the other hand, started its Vietnam route in 2008. It currently has two destinations in the country: Hanoi, the capital; and Ho Chi Minh, Vietnam's largest city.
JG Summit President & CEO and URC Chairman Lance Y. Gokongwei exchanging views with the Prime Minister of Vietnam, His Excellency Nguyen Xuan Phuc.
Recently, the conglomerate’s key officers including JGS Chairman James L. Go, JGS President and CEO Lance Y. Gokongwei, and URC President and CEO Irwin C. Lee paid a visit to Vietnam to push for closer ties with the Vietnamese government, explore further growth opportunities, and increase general awareness about the conglomerate.
Accompanied by URC Vietnam President and CEO Laurent Levan, the contingent paid a courtesy call on Prime Minister Nguyen Xuân Phúc of Vietnam on June 17, 2019. At the cordial meeting, Prime Minister Phúc acknowledged the good trade and investment relations between the Philippines and Vietnam. Credited with providing the country with a favorable business environment, he further indicated his willingness to listen to the concerns JG Summit encounters in its operations in Vietnam.
For his part, JGS President and CEO Lance Gokongwei underlined the impact the conglomerate has had on Vietnam’s growing economy. Since starting operations in 2003, URC Vietnam has invested more than US$200M in the country, put up five manufacturing facilities in three regions, and employs more than 3,000 local people. Gokongwei estimates that URC has affected the lives of 200,000 entrepreneurs, composed of distributors, wholesalers, and retailers, providing them with a combined income of 1.5 trillion VND (roughly 3.33 billion pesos). Through other programs that promote Vietnamese products and culture, URC Vietnam has also contributed to improving bilateral ties between our two countries.
Top executives of JG Summit and URC during the courtesy call with Prime Minister Nguyen Xuan Phuc of Vietnam at his office in Hanoi. The government officials from Vietnam included Vice Chairman of Hanoi People's Committee Nguyen Doan Toan (far right), Vice Chairman of the Government Office Nguyen Sy Hiep (2nd from right), and the official interpreter.
The company’s impact on people doesn’t stop there. As demonstrated by its winning entry in the People Focus category of JG Summit’s Pride in Performance Awards, URC Vietnam has been able to improve the physical condition of its plants to surpass the requirements for attaining the ISO45001:2018 certificate. It also reduced in 2018 the All Injury Frequency Rate (AIFR) by 30 percent and the Lost Time Injury Frequency Rate (LTIFR) by 30 percent versus 2017’s figures.
In his meeting with the Prime Minister, Mr. Gokongwei expressed URC’s commitment to investing in and supporting sustainable development in Vietnam's tea industry. As a leading food and beverage manufacturer, URC Vietnam has 100 percent locally sourced key ingredients, purchasing from Vietnamese suppliers 900 tons of tea leaves and 11,500 tons of coffee beans per year.
Executives of JG Summit and URC pay a courtesy call to the Chairman of the Hanoi People’s Committee, Nguyen Duc Chung.
In line with URC’s sustainability development goals as well as the Vietnamese government’s plans to ban single use plastics by the year 2025, Mr. Gokongwei discussed the company’s program to promote plastic recycling and improve the company’s packaging. He also reiterated URC’s full support of the government’s “Made in Vietnam” initiative, revealing that URC Vietnam proudly exports its products including coffee, ready-to-drink tea, biscuits, snacks and candy to 10 countries.
Some of these points were repeated in the URC officers’ discussions later in the day with Ha Noi People's Committee Chairman Nguyen Duc Chung.
Speaking to Vietnamese media during the trip, Mr. Gokongwei spoke about URC Vietnam’s plans and strategies in the coming years, particularly to replicate the success of URC’s Philippine business model in Vietnam. One approach to doing this would be to explore the possibility of expanding beyond the ready-to-drink market and to accelerate the growth of its snacks foods portfolio based on the emerging trends of Vietnamese consumer preference.
For more information about Universal Robina Corporation and its products, visit www2.urc.com.ph
