VIETNAM July 2019
PAN Food to use FSSC 22000 certification to win exports
PAN Food is the 1st confectionery producer in Vietnam to get FSSC 22000 certification in late 2018 for its newly built factory, and it is now ready to export its food products to highly demanding markets like Japan, expecting to boost its overall exports by 40% this year.
PAN Food’s food quality defective rate has now been reduced from 22% during the first run-in months to below 5% and it aims to further reduce this to 3% by 2020.
Pan Food’s CEO Nguyen Quoc Hoang said, “This certification will really make us stand out among other Vietnamese food producers and will make conversations with our international partners much easier as we share our commitment to global leading food safety standards.”
According to Hoang, food safety and sustainability is a founding block for any producer seeking for a growing business and it should be viewed as an investment rather than as an expense, as it lower recalls and protect brands. PAN Food plans to construct 2 new confectionery factories following the launch of its very first FSSC 22000 certified factory in Long An province that produces long shelf-life sponge cakes. In the past, this factory only exports 10% of its products but with the certification, it plans to boost exports.
Pan Food production has increased by 60% year-on-year and it expects to bolster its exports by 40% this year with inclusion of Japan as a new target market. In 2018, PAN Food exported some US$4.5 million worth of products to mainly East Asian markets such as China, the Philippines, Taiwan and Hong Kong. The lack of food safety certifications was identified as a challenge to enter new markets before it achieved FSSC status.
According to WHO, ASEAN has the 2nd highest burden of foodborne diseases per population with Vietnam ranked 65th out of 113 countries for Quality and Safety by the Global Food Security Index 2018. As such, poor safety standards is said to be the main hindrance for exports and industry growth. In addition, local Vietnamese consumers are becoming more aware of food safety and are demanding for quality and safe products from domestic manufacturers.
A 2018 World Bank Group study reported that unsafe food sickens 600 million people and costs about US$100 billion annually in lost productivity and healthcare in emerging markets. It costs Vietnam alone US$700 million annually.



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