Technological innovation - the impetus for enterprises to reach out

Article 1: SCIENCE AND TECHNOLOGY: THE PILLAR OF DEVELOPMENT

Hoang Son 1 Joint Stock Company based at Duc Lieu commune, Bu Dang district is one of the largest cashew nut production and trading enterprises in Binh Phuoc province and in the top 10 leading cashew nut export enterprises in Vietnam. This success is achieved thanks to the fact that the enterprise has always identified science - technology and innovation as the pillar of development.

Workers of Hoang Son 1 Joint Stock Company, Duc Lieu Commune, Bu Dang District are sorting cashew nuts

Technology innovation

In the early years of establishment, its workers had to split cashews by hand, peel each cashew nut and carry each box of goods... Now all processes have been mechanized. The Company has cashew nut splitting machine, cashew testa skin peeling machine, sorting machine, color shooting machine; forklifts, automatic conveyors... Currently, all 13 stages in cashew nut processing have been partially or completely mechanized, reducing labor by nearly 80%. Modern machinery has helped Hoang Son 1 Joint Stock Company increase labor productivity by 50-60 times compared to that of the previous years, reduce labor cost and labor force, increase the income for workers...
 

Mr. Le Anh Son, a worker of Hoang Son 1 Joint Stock Company said: “In the past, we had to do it manually, it was quite tiring to carry boxes of goods; Now there are forklifts and machines to do it all, so the work is very easy.” Mr. Ta Quang Huyen, Vice Chairman of Vietnam Cashew Association (Vinacas), General Director of the Company said: “About 20 years ago, a worker could only split 20kg of cashew kernels every day. Thanks to modern technologies, lines and machines, one machine can now split between 3 and 4 tons of cashew kernels in a day.” 

At the Company, except the color shooting machine which must be imported, rest of the cashew processing lines and machinery are made in Vietnam. These are the most advanced and modern machines and operating techniques these days. Mr. Huyen affirmed: Machinery and equipment manufactured in Vietnam have outstanding features compared with modern machines of the same type made in Italy and India. For example, the cashew testa skin peeling machine has a higher percentage of peeled seeds and is cleaner than the one imported from Italy. The domestic cashew nut shelling machine has a higher kernel expansion rate, with an accuracy of up to 100%. Therefore, we can be proactive in technology, save investment costs, and reduce labor costs. If we previously needed about 100 workers, now with domestic automatic machines, we only need 20-30 workers. Particularly in the stage of salt roasting, the Company invested in 40 roasting machines and daily, the business can roast 20 tons of cashews, 3 times higher than manual roasting by pan as before. 

Investing in modern production lines in a closed process from splitting raw materials to packaging products is the way that Hoang Son 1 Joint Stock Company brings customers quality products, meeting European food safety criteria. With 500 workers, on average, the Company produces 300 tons of raw cashew nuts per day, mainly 2 product lines of white kernels and salted roasted cashews. In 2012, the Company exported 5,400 tons; in 2021, the Company produced 100,000 tons of raw cashew, with 99.5% of the products made for export. It is expected that in 2022, it will produce 110,000 tons of raw cashews and export 23,000 tons of finished products, in which 99% of output is exported to foreign countries with more than 200 partners in the American, European, Asian and African markets.

Branding

Roasted salted cashew products of Hoang Son 1 Joint Stock Company are made with new technology

With a system of modern equipment and machinery from factories, warehouses, processing lines, product classification, sterilization, packaging... following the international standards of ISO quality management and HACCP food safety, annually, Ha My Joint Stock Company (Tan Lap commune, Dong Phu district) produces, processes and exports over 3,200 tons of finished products, including deep processing. Currently, the Company has 36 types of products, which are exported to 86 countries around the world and is a reliable partner of many domestic and foreign customers.

Ms. Nguyen Thi My, General Director of Ha My Joint Stock Company said: Since the date of being granted the certificate of the right to use the geographical indication for “Binh Phuoc Cashew”, the Company has built a product traceability system, using geographical indications on packages and product labels to put them into the markets. Ha My Company has been linking and consuming products with the geographical indication of Binh Phuoc cashew nut from more than 100 member households of three cooperatives in Bu Dang District. 

According to the Department of Science and Technology, Binh Phuoc has 9 enterprises which were granted the certificates of the right to use the geographical indication for “Binh Phuoc Cashew”. The development of geographical indications is consistent with the Province’s cashew industry development policy. This is a tool to help businesses increase product value, expand markets, increase access to difficult markets, increase competitiveness in the world market, and at the same time ensure sustainable development.

The Director of the Provincial Department of Science and Technology Dang Ha Giang said: Intellectual property is not only a tool to protect the value of products but also a driving force for sustainable commercial development. Therefore, the geographical indication for Binh Phuoc cashew nut products has become an important form of intellectual property protection that brings many practical values, increases competitiveness, and meets the requirements of quality management, traceability of the export market, contributing to the Province’s socio-economic development. The geographical indications also help preserve and improve the economic value of agricultural products; have the exclusive right to use place names as a tool to access the market, fight against unfair competition, and protect the legitimate interests of producers. Most importantly, consumers are instructed that products have clear origins, standards, quality, and food safety. 

In order to make the cashew industry to have the export value of 1 billion USD/year, Binh Phuoc Province has been granting certificates of the right to use geographical indications, building its own brand, focusing on deep processing and technology innovation, and bringing machines to replace manual labor. 

Bringing Vietnamese cashew to the top of the world

According to Vinacas, in 2006, Vietnam overtook India, the country with the oldest and largest cashew processing and exporting industry in the world. Currently, Vietnam’s cashew industry is far ahead of India in terms of export and import transaction and processing volume, becoming the new “capital” of the world cashew nut processing industry. 

To achieve the above results, Vietnamese enterprises have actively researched and manufactured technological lines, bringing equipment and machinery to replace manual labor. In particular, domestic machine-making technology is widely popularized, turning Vietnam from a raw cashew exporter to a world leader in cashew kernel exports. The proof is that every year, the world produces about 4 million tons of raw cashew, of which Vietnam alone processes 3 million tons, accounting for 75% of the global raw cashew production; this makes Vietnam’s cashew industry the world leading producer of cashew nuts. Vietnamese cashews are present in more than 90 countries and territories. 

Mr. Ta Quang Huyen, Vice Chairman of Vinacas, General Director of Hoang Son 1 Joint Stock Company emphasized: This success is thanks to the fact that Vietnamese cashew enterprises are always innovative and creative in developing production technology, bringing Vietnam from the country that studying the cashew processing from other countries to the powerhouse in this industry.