Key Raw Materials

• For sauces: anchovies, dehydrated vegetables, soy, chilies, and various flavorings and spices
• For instant noodles: flour, palm oil, dehydrated vegetables, and various flavorings and spices
• Packaging materials such as paper labels, carton boxes, polypropylene or paper-based cups/bowls, plastic bags and glasses are significant components in the production cost

Procurement Strategy

Our purchasing department (MPO) at our Ho Chi Minh City headquarters is responsible for sourcing and negotiating with suppliers for all of our raw materials. Our subsidiaries then enter into the agreements with our suppliers negotiated by the purchasing department.

Our purchasing department is also responsible for developing and maintaining the optimal number of reliable suppliers to meet our requirements. The department currently procures raw materials from over 60 suppliers under long-term contracts to ensure consistency and high quality. Suppliers whose long-term performance record with us demonstrates reliability are considered "approved suppliers” and will continue to be engaged under long-term contracts. This strategy helps us to minimize the risk of working with suppliers who under-perform by missing deliveries, supplying materials of inconsistent quality or that are not in conformance to specifications, or unexpectedly increasing prices.