Table of Figures

Figure 1: KIDO Group's subsidiaries and business sectors.................................................2

Figure 2 The simple steps in risk management processing.................................................4
Figure 3 The PESTLE framework ......................................................................................5

Table of Tables
Table 1: The Risk Identification .......................................................................................11
Table 2: The risk matrix ....................................................................................................13
Table 3: The Controlling Risk ..........................................................................................14
Table of Contents
ABSTRACT..........................................................................................................................
1. Introduction about KIDO Group.....................................................................................1
1.1 Historical development..............................................................................................1
1.2 Mission and Vission...................................................................................................1
1.3 Scope of business.......................................................................................................1
1.5 Structure of KIDO Group..........................................................................................2
1.6 Analyzing the SWOT of the KIDO Group.................................................................2
1.6.1 Strengths..............................................................................................................2
1.6.2 Weakness.............................................................................................................3
1.6.3 Opportunities.......................................................................................................3
1.6.4 Threats.................................................................................................................3
2. Theoretical framework.....................................................................................................4
2.1 Definition of Risk Management.................................................................................4
2.2 ISO 31000 Overview.................................................................................................4
3. Analyzing the risk management of KIDO Group...........................................................5
3.1 The impact of environmental risks on the business operations of the KIDO Group. 5
3.1.1 Social – cultural...................................................................................................5
3.1.2 Technological factors..........................................................................................8
3.1.3 Economic factors.................................................................................................8
3.1.3 Environmental factors.........................................................................................9
3.1.4 Political factors..................................................................................................10
3.1.5 Legal elements...................................................................................................10
3.2 The effective risk management process for KIDO Group.......................................11
3.2.1 Risk identification.............................................................................................11
3.2.2 Analyzing Risk..................................................................................................13
3.2.3 Managing and Controlling risk.........................................................................14
3.2.4 Monitoring and Reporting Risk for KIDO Group.............................................15
4. Conclusion.....................................................................................................................16
References..............................................................................................................................
 ABSTRACT
KIDO Group Corporation, one of Vietnam's premier consumer goods (FMCG)
companies, has proved its capacity to overcome adversities and maintain its market
leadership via clever and innovative business tactics. This paper analyzes KIDO's
developmental history, vision, purpose, and organizational structure, as well as the social,
economic, technologically and environmental elements that influence the group's
commercial operations.The article focuses on KIDO’s excellent risk management
strategy, which includes identifying, analyzing, controlling and monitoring key risks such
as fluctuating raw material costs, supply chain disruptions and changing customer
preferences. KIDO has maintained stability and seized growth opportunities in a highly
competitive marketplace by implementing risk management measures such as
diversifying supply sources, deploying modern technology and making sustainable
products.

In addition, the paper also discusses KIDO’s potential and challenges, such as global
market expansion, growth in e-commerce, and healthy consumption patterns. The study
demonstrates how KIDO uses computer technology and artificial intelligence to improve
product quality, increase operational efficiency, and build customer trust and loyalty.
Ultimately, the analysis highlights that KIDO’s success is not only based on its ability to
manage risk and adapt, but also on its strategic vision and dedication to providing high-
quality, sustainable goods. These day-to-day innovations not only boost KIDO’s
competitive position in Vietnam but also give it the potential to become the largest food
group in Southeast Asia. This report is an invaluable resource for companies looking to
implement sustainable growth plans and manage risks wisely for maximum effectiveness.
1. Introduction about KIDO Group
1.1 Historical development

KIDO Group Corporation, established in 1993 in Vietnam, initially focused on producing

and distributing edible oils. Over time, it diversified into various food sectors, such as ice
cream, frozen foods, and snacks, becoming a major player in Vietnam's food industry.
Originally known as Tuong An Vegetable Oil Joint Stock Company, KIDO rebranded in
2015 to reflect its broader market scope and strategic expansion. Through acquisitions
and partnerships, the company has strengthened its presence in both domestic and
international markets, positioning itself as a leader in the Vietnamese consumer goods
industry.

KIDO Group Corporation, originally founded as Kinh Do Corporation in 1993, started by

producing snacks in Ho Chi Minh City. In 1999, it transitioned to a joint-stock model and
expanded internationally. The company entered the ice cream industry in 2003 by
acquiring Unilever's Wall's factory, creating the Merino and Celano brands. KIDO listed
on the stock exchange in 2005 and rebranded as KIDO Group in 2015, expanding into
essential foods. The company revived KIDO’s Bakery in 2020 and acquired 68% of Thọ
Phát in 2023, expanding into frozen foods and seasonings.

1.2 Mission and Vission

KIDO’s mission is to offer high-quality, essential, and convenient food products while
expanding its leadership in Vietnam and Southeast Asia. The company focuses on product
diversity, health-conscious options, and sustainable growth through digital transformation
and optimized supply chains.

KIDO aims to become the leading food group in Vietnam and expand across Asia by
offering essential, safe, nutritious, and convenient products that enhance daily life. Its
vision focuses on providing value and unique culinary experiences to households,
positioning KIDO as a top provider of essential foods in the region.

1.3 Scope of business

KIDO Group is a leading conglomerate in Vietnam’s food and consumer goods industry,
operating across four main product groups that showcase its extensive market presence.

1
The company excels in three core sectors: ice cream, ready-to-eat foods, and edible oils.
Its ice cream products dominate the market, catering to a wide range of consumer tastes.
The ready-to-eat segment, represented by Gia Vị Hoàng Gia, provides convenient and
high-quality cooking essentials. In the edible oils market, KIDO’s Neptune brand is
trusted for its health benefits and versatility.

Beyond its core industries, KIDO has expanded into the beverage sector, offering a
variety of fresh and nutritious drink options. This strategic diversification highlights the

Figure 1: KIDO Group's subsidiaries and business sectors

group.

1.5 Structure of KIDO Group

KIDO Group's organizational structure follows a centralized functional model. The Board
of Directors makes strategic decisions, while the Executive Board, led by the CEO,
implements these strategies. Department Heads oversee key business areas like food
production, edible oils, ice cream, and beverages, ensuring efficiency and specialization.
This structure allows KIDO to maintain effective and consistent execution of its
strategies across all divisions.

1.6 Analyzing the SWOT of the KIDO Group

1.6.1 Strengths
Strong brand and long-term reputation: KIDO is one of the corporations with a long-
standing and prestigious brand in Vietnam, especially in the food industry. KIDO's
products such as Merino ice cream, Celano ice cream, Tuong An cooking oil, Vocarimex,
or Kinh Do confectionery have become familiar brands to consumers. In addition, KIDO
also owns a large distribution network concentrated in many big cities and in all other
regions in many provinces, making it easy to bring products to consumers quickly and
effectively.
2
Joint Ventures and Strategic Cooperation: KIDO has many strategic partnerships with
large domestic and foreign companies and corporations. This helps KIDO learn from
experience, access technology and capital from international partners.

1.6.2 Weakness
Dependent on the domestic market: Although KIDO has made efforts to expand into the
international market, the majority of its revenue still comes from the domestic market.
This makes KIDO vulnerable to economic fluctuations and changes in demand in
Vietnam.

Highly competitive product category: KIDO's products such as cooking oils, ice creams,
and confectionery all face stiff competition from both domestic and international
companies. This forces the group to constantly innovate and improve product quality to
maintain market share.

High advertising and marketing costs: In order to maintain and develop the brand, KIDO
must invest heavily in advertising and marketing activities. However, this cost is quite
high and affects profits, especially in the context of fierce competition.

1.6.3 Opportunities
Expanding the international market: With a strong manufacturing platform and brand,
KIDO has the ability to expand to the international market, especially the ASEAN region
and other potential markets. The trend of international economic integration and free
trade agreements (FTAs) opens up many export opportunities for KIDO.

Development of health products: The current consumer trend is shifting towards healthy,
low-sugar, low-fat, organic or functional products. This is a great opportunity for KIDO
to develop new product lines that are suitable for the needs of modern consumers.

Application of digital technology and e-commerce: The development of e-commerce and

digital technology creates great opportunities for KIDO to reach and take care of
customers. KIDO can take advantage of online channels to expand revenue and enhance
marketing efficiency.

1.6.4 Threats
Fierce competition: KIDO faces strong competition from both domestic and international
competitors. Large enterprises such as Unilever, Nestlé and other domestic companies are
3
constantly increasing their presence in the Vietnamese food and consumer goods
market.

Raw material price fluctuations: KIDO's main products such as cooking oil, ice cream,
and confectionery all depend on the supply of raw materials such as vegetable oil, milk,
sugar, and cocoa. The price fluctuations of these raw materials can affect the company's
production costs and profit margins.

Changing consumer tastes: Consumer tastes are changing rapidly, especially in the
context of consumers' increasing focus on health and sustainable products. This requires
KIDO to quickly adapt and innovate products.

2. Theoretical framework
2.1 Definition of Risk Management
In risk management, risk can be concisely defined as "uncertainty that matters." This
definition emphasizes risk which involves uncertainty about future events or outcomes
and highlights its significance in impacting objectives, decision-making, or performance.
Understanding this is essential for identifying and addressing risks effectively.

Risk management is the structured process of identifying, analyzing, and responding to

risks that could impact the achievement of organizational objectives. It focuses on
anticipating uncertainties, both positive (opportunities) and negative (threats), and
implementing actions to reduce them to acceptable levels. This process involves
collaboration with risk owners to ensure risks are clearly defined, analyzed, and managed
dynamically as circumstances evolve. A key tool in this process is the risk register, which
documents identified risks, assessments, and responses, and assigns responsibility for
mitigation actions. Effective risk management enhances decision-making, supports
strategic goals, and ensures resilience against uncertainties.

Risk
Identifying Analyze Risk Trick the
mornitori
risks risks mitigation risk
ng

Figure 2 The simple steps in risk management processing

4
2.2 ISO 31000 Overview
ISO 31000, established by the International Organization for Standardization, is a
comprehensive standard offering principles, a framework, and a process for risk
management applicable across all organizations and sectors. It defines risk as the impact
of uncertainty on achieving objectives and emphasizes integrating risk management into
organizational governance, culture, and strategic planning. Unlike rigid frameworks, ISO
31000 allows customization to fit the unique context of each organization.

The standard comprises three main components: principles, framework, and process. The
principles outline the foundation of effective risk management, emphasizing value
creation, inclusivity, and dynamic adaptability to change. The framework provides a
systematic approach to embedding risk management into an organization’s culture and
practices, ensuring alignment with objectives and accountability. Finally, the process
involves systematically identifying, analyzing, evaluating, and treating risks, supported
by monitoring and continuous improvement.

3. Analyzing the risk management of KIDO Group

3.1 The impact of environmental risks on the business operations of the KIDO Group
3.1.1 Social – cultural

Figure 3 The PESTLE framework

Educational level: The impact of cultural factors is often more long-term and subtle than
other factors, and the scope of impact of cultural factors is often extensive. Aspects of the
formation of the sociocultural environment have a strong influence on business activities
such as ethical and aesthetic views, lifestyle, and occupation; customs, practices and
traditions; the concerns and priorities of society; the level of cognition and general
education of society... These aspects show how people live, work, enjoy as well as
5
produce and provide services. The problem for business managers is not only to
recognize the presence of the current social culture but also to predict its changing trends,
thereby proactively forming adaptive strategies.

Demographics: Population size: Vietnam is ranked 15th in the world in the population
ranking of countries and territories with more than 98 million people (2021). The
population density of Vietnam is 318 people/km2. Specifically, in Ho Chi Minh City,
where KIDO company operates extremely actively, by 2019, the city's population
increased to 8,993,082 people and is also the place with the highest population density in
Vietnam. Based on the latest statistics from the end of 2020 to the beginning of 2021, the
population density of Ho Chi Minh City is 4,292 people/km². Playing the most important
role in Vietnam's economy. (The increasing population creates young and abundant
human resources, and the 10 schools with larger domestic consumption create favorable
conditions for the industry).

Age structure: As of the beginning of 2017, population data by age (estimated):

23,942,527 adolescents under 15 years old (12,536,210 males/11,406,317 females),
65,823,656 people aged 15 to 64 years (32,850,534 males/32,974,072 females) 5,262,699
people over 64 years old (2,016,513 males/3,245,236 females). With a young population
structure, the demand for confectionery is believed to increase and is a fertile market
because nearly half of the population is under 30 years old. This is a demographic group
that is receptive to Western tastes and innovative products.

Geographical distribution of population: Although the majority of Vietnam's population

still lives in rural areas, in 2012 the Vietnamese population living in rural areas accounted
for 32.5%, however, this rate has changed, the proportion of urban population accounting
for 38.05% (2019) increased relatively quickly, also making Vietnam a potential and
attractive market for food consumption in Vietnam There are confectionery due to the
increasing migration to big cities that will also affect their consumption habits for years
to come.

Race/ethnicity: KIDO Company was established in 1993 from a small workshop in Phu
Lam, District 6, Ho Chi Minh City and the company has very strong business activities in
the Southern region, especially the Southeast and Mekong Delta. Where the people are
mostly Kinh ethnic groups, accounting for nearly 90% of the total population, besides
6
this is also a place where some other ethnic groups migrate here to live and work, the
most of which are Cham, Khmer and Chinese ethnic groups. … This creates a diverse
workforce and is also an indispensable source of customers in the customer structure of
KIDO company. It can be said that for each ethnic group, there are different customs and
customs, and this has invisibly created new consumption trends. It is also a challenge and
an opportunity for the company if it can create new and improved products that suit the
tastes of customers.

Allocated Income: The General Statistics Office estimates that the multidimensional
poverty rate dropped by 0.4 percentage points to 4.4% in 2021, while the average
monthly income per capita is anticipated to be 4.2 million VND, down 73,000 VND from
2020. Income has decreased as a result of the complex COVID-19 pandemic, but there
has also been a positive trend as people's interest in long-term preserved foods has
increased and the distribution of cold and dry commodities has expanded. KIDO has
taken advantage of this opportunity, increasing its ice cream market share from 41.4% to
43.5% and cooking oil revenue has increased sharply. In 2021, KIDO's total revenue
reached more than 10,500 billion VND, up 26.2% over the previous year. Of which,
packaged cooking oil accounts for about 85% (8,900 billion VND, up 28.6%) and
packaged cold products account for 14.5% (1,533 billion VND, up 18.4%).

Social trends: Vietnam's socio-cultural strength significantly impacts the economy,

especially in the current era of industrialization and modernization. Businesses that focus
on socio-cultural issues often find success. Vietnam's diverse religious practices and
festival culture, with 80% of the population engaged in religious life, heavily influence
the confectionery industry. Festivals like Tet and the Full Moon Festival underscore the
importance of food and sweets in rituals. This diversity drives the industry's growth,
prompting companies to create culturally rich products. Consumers value quality and
aesthetic presentation, particularly when sweets are used as gifts, reflecting deeper social
meanings and traditions. Thus, confectionery in Vietnam serves as both a cultural and
social symbol.

KIDO benefits from cultural factors in designing and developing product lines, but faces
challenges due to low annual cake consumption. As the economy grows, customer needs
and tastes diversify, especially among different age groups. Young people follow new
7
trends independently, and food safety, quality, and hygiene, especially low-fat and low-
cholesterol products become increasingly important. Vietnamese consumers' openness to
new products and rising spending power creates a promising yet competitive market.
Additionally, tourism growth boosts demand for fast-processed foods, driving significant
momentum in the food manufacturing industry.

3.1.2 Technological factors

The confectionery industry is witnessing a significant shift towards automation and
technological advancements. With quality and food safety being top priorities, companies
are leveraging various technologies to stay ahead. KIDO Company is at the forefront of
this trend, boasting a technical and technological level on par with modern factories
worldwide.

By importing and utilizing state-of-the-art equipment from Europe and America, KIDO
produces high-quality products that meet international standards. The company's modern
confectionery production lines, many of which are the most advanced in Asia, have
solidified its position as a leader in the industry. In short, embracing modern technology
and techniques has enabled companies like KIDO to enhance product quality, expand
their offerings, and reduce costs, ultimately gaining a competitive edge in the market.

3.1.3 Economic factors

3.1.3.1 Macroeconomics
Labor situation: Generally, in the first nine months of 2024, the number of employed
workers was 51.4 million people, an increase of 212 thousand people over the same
period last year. In which, the urban area was 19.7 million people, an increase of 753.6
thousand people over the same period last year; rural areas are 31.7 million people, down
541.5 thousand people.

Sector-wise, agriculture, forestry, and fishery employed 13.7 million people (26.6%), a
decrease of 126.7 thousand from the previous year. The industrial and construction sector
employed 17 million people (33.1%), down by 151.5 thousand. Conversely, the service
sector grew significantly, with employment increasing by 490.2 thousand to 20.7 million
people (40.3%). Despite the overall rise in employment, the labor market remains
unstable due to a high proportion of informal workers. In the third quarter of 2024, 33.0

8
million people were informally employed, making up 63.9% of the total workforce,
showing slight decreases from both the previous quarter and the same period last year.

Inflation rate: In 2021, in the context of increasing global inflationary pressure, the price
of raw materials for production, freight rates continued to increase, but Vietnam's average
consumer price index (CPI) in 2021 only increased by 1.84% compared to the previous
year, the lowest in the past 6 years. achieving the target set by the National Assembly,
continuing to be a successful year of inflation control.

Gross domestic product (GPD): Vietnam's economy faced significant challenges in 2021,
with GDP growth limited to just 2.58% due to the COVID-19 pandemic and especially
the prolonged lockdown in the third quarter, which led to many small businesses exiting
the market. Despite this, the country achieved remarkable success in controlling inflation
in 2023, with an average increase of only 3.25% year-on-year, falling below the National
Assembly's target and marking the ninth consecutive year of keeping inflation under 4%.
This success contributed to macroeconomic stability and ensured the major balances of
the economy, leading to positive assessments from all three major credit rating agencies:
S&P and Moody's maintained their ratings (BB+ Stable Outlook and Ba2 Positive
Outlook, respectively), while Fitch upgraded Vietnam's long-term national credit rating to
BB+ with a Stable Outlook. The positive trend continued into the first quarter of 2024,
with inflation controlled at an average increase of 3.77% year-on-year. These results
strengthen the confidence of both domestic and international organizations in Vietnam's
economic prospects and the government's ability to implement flexible, creative, timely,
and effective policies in macroeconomic stabilization and inflation control.

3.1.3.2 Microeconomic
In the past two years, the growth rate of this industry has reached about 8-10%, instead of
15-20% in the period 2010-2015. However, in the eyes of foreign investors, Vietnam's
market of 97 million people is still attractive, because compared to the average growth
rate of the confectionery industry in the world of about 1.5% and Southeast Asia alone is
3% (according to Vietinbank Securities statistics), the growth rate of Vietnamese
confectionery is still high.

9
3.1.3 Environmental factors
Vietnam's diverse climate, with three distinct regions, significantly influences its
agricultural products and their storage, such as cassava, sugarcane, taro, and lotus. The
hot and humid conditions prevalent in many areas pose challenges for the confectionery
industry, affecting product quality, labor productivity, and preservation during transport.
The market for confectionery products is large, with most companies situated in densely
populated areas with high purchasing power, facilitating trade and enhancing
competitiveness. However, expanding into remote markets, like mountainous areas, is
challenging due to geographical barriers, long transportation distances, and varying
consumer preferences. Thus, while the industry thrives in urban centers, reaching remote
regions remains difficult.

3.1.4 Political factors

Vietnam's stable political situation creates favorable conditions for economic sectors,
including the FMCG industry, to thrive. This political stability attracts foreign investors,
enhancing Vietnam's potential for regional and global economic integration, especially in
food production and processing. Over the years, numerous M&A deals have occurred in
the food industry, a trend expected to continue, showcasing the sector's attractiveness to
international investors.

However, economic downturns and socio-political issues can negatively impact consumer
spending. KIDO Group closely monitors these changes to predict shifts in consumer
sentiment and raw material prices. By maintaining prudent purchasing policies, effective
working capital management, and stringent cost control measures, KIDO aims to
minimize the impact of these fluctuations on their operations and sustain demand even in
uncertain times. This strategic vigilance ensures that KIDO can adapt to changes swiftly
and maintain its competitive edge in the market.

3.1.5 Legal elements

The legal framework profoundly influences KIDO Group's business operations,
encompassing key legislation like the 2010 Consumer Rights Protection Law, the 2019
Labor Law, and the updated Securities Law effective from January 1, 2021, enhancing
the business climate. The 2020 Environmental Protection Law has expanded to include
residential communities, underlining their role in environmental stewardship. Recent

10
policy developments include proposed amendments to import-export tax regulations,
suggesting exemptions for raw materials used in export manufacturing. Furthermore, in
January 2022, the National Assembly passed Resolution 43/2022/QH15, which features
significant fiscal and monetary adjustments for economic recovery, notably reducing VAT
to 8% and offering debt restructuring options. These dynamic legal and policy shifts
compel KIDO to continuously adapt its compliance practices to remain in sync with the
ever-evolving market demands.

3.2 The effective risk management process for KIDO Group

3.2.1 Risk identification
Table 1: The risk identification table
Types
N Name of
of Situation Consequence
o Risk
risk
1 The risk of importing raw The shortage of raw
1.1 materials from Malaysia and materials can cause
Supply chain Indonesia, if the supply production to be disrupted
dependencies chain is disrupted, will and not met. This situation
and the significantly affect the can cause higher
possibility of production process (90% of production costs and
disruption raw materials must be reduce the amount of
imported, mostly from products supplied to the
Supply chain risks

Malaysia and Indonesia). market

1.2 When the price of raw Fluctuations in raw
Fluctuations materials increases, KIDO's material prices affect
in raw production costs can be KIDO's inventory plan and
material increased more, affecting supply chain. When prices
prices the company's profit margin. are unstable, it becomes
With its market position as difficult to stock up on raw
one of the largest importers materials because of rising
of palm oil and soybean oil inventory costs, and if it is
in Vietnam, KIDO is under a not possible to stock
lot of pressure to proactively enough, KIDO may face a
11
 forecast market fluctuations. shortage of raw materials
when demand increases.
Sudden production halts Sudden production halts at
delay product supply to the KIDO could delay product
market, reduce productivity, supply to the market,
and increase maintenance reducing productivity and
2.1
costs. Extended downtime increasing maintenance
Automation
may also harm the costs. Extended downtime
equipment
company’s reputation and its might also damage KIDO’s
failure
ability to fulfill customer reputation and hinder its
orders on time. ability to fulfill customer
orders on time, potentially
Technology risk

leading to loss of customer

2
trust and market share.
Production management The loss of important data
2.2 systems and data related to disrupts production
Data Loss in product quality, and processes, making it
Production customer and supplier challenging to manage and
Management information may be lost or operate effectively. If
and Control damaged due to hardware sensitive customer or
Systems errors, software problems, supplier data is lost, it may
or cyber-attacks. seriously damage the
company’s reputation and
trust.

12
3 Consumers are shifting KIDO faces several risks
towards healthier and more due to changing consumer
sustainable choices, tastes, including declining
favoring natural, organic, sales and market share of
preservative-free, low-sugar, high-sugar, high-fat
and low-fat products. Trends products. The company
3.1 like vegetarian, vegan, and risks losing health-
Changing flexitarian diets are on the conscious customers and its
consumer rise, alongside a demand for competitive advantage
trends transparency in product against rivals offering
origins and production healthier alternatives.
processes. This shift creates These shifts could also
a risk for businesses unable harm KIDO’s brand image,
to adapt quickly to evolving affecting long-term
Consumer taste risk

consumer expectations. customer loyalty and

market positioning.
3.2 Young consumers The risk of changing
Changes in increasingly seek products consumer preferences
tastes and with unique flavor could have a significant
preferences combinations and creative impact on KIDO, leading
experiences. They prioritize to the loss of a loyal
items with appealing customer base, especially
aesthetics and innovative as younger consumers
packaging designs, become harder to attract
reflecting a preference for and retain. This shift could
both quality and visual result in a severe decline in
appeal. These rapidly sales, particularly in older
changing tastes create risks product lines that no longer
for businesses unable to align with current trends. In
adapt quickly, leading to addition, KIDO may face
potential loss of increased marketing costs
competitiveness and in efforts to reach new

13
 customer loyalty. audiences, putting pressure
on profit margins and
potentially harming long-
term financial stability.

3.2.2 Analyzing Risk

3.2.2.1 Measurable Risk
Table 2: The risk matrix
Impact of risk
Likelihood
Insignificant Minor Moderate Major Death
Rare
1.2
Unlikely
2.2
Possible 3.1 3.2 2.1
Likely 1.1
Certain

3.2.3 Managing and Controlling risk

Table 3: The controlling risk table
Controlling
Risk Solution
Risk

KIDO should seek suppliers from countries that are not affected
by this policy or alternative domestic sources. To maintain the
Avoidance 1.1
supply chain and take into account risks, businesses can
simultaneously negotiate long-term supply contracts.

Implement a Preventive Maintenance Program with regular

inspections and maintenance to mitigate unexpected
Transference 2.1 breakdowns. Additionally, provide technical training for staff to
detect and address minor issues, helping to reduce production
downtime.

14
 To mitigate data loss in production management systems,
implement strong encryption for both data storage and
transmission. Regular software updates and patches should
2.2 address vulnerabilities, while employees should receive
cybersecurity training to detect and prevent potential threats.
These steps ensure the security and continuity of production
Mitigation
systems against data risks.

To mitigate risk, KIDO and its suppliers – the world's largest

crude oil traders – share oversight of risk management. The
1.2 Group can provide suppliers with a clear plan for purchasing raw
materials and ensure a fixed price for a suitable period of time
for consistency in production costs export.

To manage the risk of changing consumer preferences, KIDO

should invest in R&D for healthier product lines, such as low-
sugar, organic, and plant-based options. Reformulating current
products to reduce sugar and fat, while replacing preservatives
3.1 with natural alternatives, will align with consumer demands.
Clear, transparent communication about ingredients, sourcing,
and production is crucial. Partnering with nutritionists and health
experts can enhance KIDO’s brand and product quality, fostering
Acceptance
trust and long-term customer loyalty.

To address changing consumer preferences, KIDO should

regularly conduct market research to track evolving trends,
especially among youth. It should launch new, creative limited-
3.2 edition products and invest in innovative, eye-catching
packaging. Additionally, organizing experiential marketing
events will help connect with customers, fostering deeper brand
engagement.

15
3.2.4 Monitoring and Reporting Risk for KIDO Group
3.2.4.1 Monitoring
Monitoring supply chain risks necessitates overseeing the consistency of raw material
supplies and fluctuations in prices. Advanced systems should analyze supplier reliability
and market trends, particularly for essential imports like palm oil and soybeans. The
success of these efforts can be gauged through reduced supply disruptions, stabilized
costs, and steady production during demand surges. For technological risks, IoT-enabled
diagnostic tools and preventive maintenance strategies are crucial for sustaining
operational efficiency. Key performance indicators such as minimized downtime,
optimized maintenance expenses, and strengthened cybersecurity safeguards measure the
success of these initiatives.

Consumer preference risks demand adaptive tools, including social media analytics and
customer feedback platforms, to identify emerging trends. KIDO’s ability to sustain sales
performance, launch competitive product lines, and attract health-conscious consumers
reflects the strength of its monitoring processes. These approaches ensure that KIDO
remains competitive in a dynamic marketplace.

3.2.4.2. Reporting
Quarterly dashboards provide detailed updates on risk levels, mitigation progress, and
alignment with strategic objectives. Annual evaluations present a comprehensive
overview of risk management effectiveness, enabling informed decisions by the Board of
Directors. Externally, compliance with regulatory standards and transparent
communication with stakeholders reinforce trust. Publishing an annual sustainability and
risk management report emphasizes KIDO's resilience and proactive adaptations.

The integration of predictive analytics and automation improves both monitoring and
reporting, enabling precise and timely insights. Regular capacity-building programs and
feedback systems ensure continuous refinement, demonstrating KIDO’s dedication to
proactive risk governance. These collective efforts help mitigate disruptions, safeguard
operational goals, and position KIDO as a resilient and adaptable organization in a
complex business environment.

16
4. Conclusion
The arduous journey of KIDO Group from a small-scale cooking oil producer to a
leading multi-industry corporation in the fast-moving consumer goods (FMCG) industry
in Vietnam is a testament to its resilience, strategic vision and spirit of constant
innovation. Over the past three decades, the company has continuously developed to
meet the ever-changing needs of the market by utilizing its solid strengths including a
long-standing brand, a solid supply chain and a deep understanding of customer needs.
By combining traditional values with bold ideas, KIDO Group has created a distinct and
strong competitive position in the fiercely competitive marketplace out there.

KIDO’s success stems from the company’s smart approach to proactively identifying and
capitalizing on opportunities with agility. The company focuses on healthy, sustainable
and digitally compatible products that are aligned with global trends and customer
expectations. By leveraging its strong brand positioning, large distribution network and
superior manufacturing technology, KIDO has established itself as a trusted household
name in Vietnam and aspires to become one of the largest companies in Southeast Asia in
the future.The company’s robust risk management system is a concrete illustration of its
ability to address complex challenges including volatile raw material costs, supply chain
disruptions, and changing customer behavior. KIDO’s supplier diversity, investment in
local sourcing, and collaboration with overseas partners are important risk mitigation
techniques that ensure continuity and sustainability of operations. Furthermore, the use of
advanced technology such as artificial intelligence and IoT to control quality and
operational efficiency demonstrates the company’s dedication to staying ahead in a
highly competitive market.

Looking ahead, KIDO is well positioned to capitalize on new opportunities in the

ASEAN region and beyond. As demand for nutritious, organic and eco-friendly food
products continues to grow, it is creating a highly profitable market for KIDO’s continued
efforts to develop and innovate its products. Furthermore, the company’s expansion into
online stores and e-commerce allows it to reach younger, more tech-savvy consumers
while diversifying its revenue streams.However, to maintain its leading position, KIDO
needs to continuously improve across many important areas. As competition increases
from both domestic and international rivals, it needs to continuously innovate and

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differentiate itself. The Group has always had to continuously invest in research, product
development and marketing efforts to maintain its competitiveness and surpass its
competitors. Furthermore, the company should strengthen its commitment to
sustainability as it is not a trend but an essential value. By implementing environmentally
friendly processes that minimize pollution throughout the entire supply chain and
diversifying its social responsibility actions.

Moreover, KIDO’s success reflects Vietnam’s strong economic development and is a

testament to a prominent consumer goods center rising to new heights in a fierce
economic market. As KIDO supports the country’s position in premium food production,
it emphasizes that development is essential to help local brands become stronger and
more competitive on a global scale. By promoting innovation, enhancing cooperation and
staying true to its goals and direction, KIDO is not only able to dominate the local market
but also play a role as Vietnam’s largest enterprise in the world economic
arena.Ultimately, KIDO Group has proven its core values of strategic vision, flexibility
and dedication to quality in every product that has brought long-term success. As it
continues to expand and innovate, the company is poised to become a unique player in
the food and consumer goods market, bringing new value to consumers, investors and the
community. Through its relentless efforts to comply with international standards while
maintaining its own uniqueness in maintaining local flavors, KIDO is on track to achieve
its ambitious goal of becoming Asia’s leading food group, setting benchmarks for
excellence and innovation in the years to come.

KIDO Group is not simply a story of a company's development but also a vivid tribute to
the Vietnamese spirit: perseverance, creativity and always striving to overcome all
difficulties. From a small factory, KIDO has grown steadily to become a company with
great influence and importance in the food industry as well as affirming its reputation not
only domestically but also in the international market. In addition, the success and tireless
efforts of KIDO have clearly demonstrated the ability to take full advantage of
opportunities and the ability to adapt to global fluctuations to develop and improve better
day by day. Not only that, it also represents the desire and aspiration for success of
Vietnamese companies.

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References