Charoen Pokphands Foods PCL (CPF) plans to generate more business growth from overseas operations, focusing on increasing capacity in Thailand and foreign bases to serve export market. It cites growing demand internationally, especially in Association of Southeast Asian Nation (ASEAN) markets, as the reason for this strategic decision.

The company also expects better performance in the second half of 2018 as a result of improved performance in the swine and aquaculture business.

Sooksunt Jiumjaiswanglerg, chief executive officer for agro-industrial business and co-president of CPF, said the company will move toward more overseas growth. The ratio of total sales from the overseas operation and Thailand operation, including exports, will shift from 68:32 this year to 70:30 in the next five years.

"CPF's direction will focus on export sales expansion. The company's foreign operations are going to shift from mainly domestic consumption to more exports. So far, its production already bounds for more than 30 countries around the world and will expand the production to increase export sales. The company believe this strategic decision will help us to reach our target growth," Sooksunt said.

Under the expansion plan, the company will focus on the integrated poultry project in Vietnam, which is worth nearly $250 million (U.S.), including feed mill breeding farms and a processing plant. The plant will be completed by the end of 2019. The processed chicken from this plant will be exported to other Asian countries, such as Japan.

Sooksunt expressed optimism that the company's performance in the second half of 2018 will be brighter than the first half, with growth driven by continuous recovery in Vietnam's pig prices and improved sales in the aquaculture business.

He noted that CPF's overseas operations in the first half of 2018 showed profitable performance, especially for the Philippines and India. Moreover, the performance in Turkey also improved, resulting from business restructuring mainly on animal feed and processing food.

The outlook for the second half of 2018 is to outperform the first half. The main two factors contributing to encourage business growth are that pig prices, particularly in Vietnam, are increasing and will back to normal in the second quarter of this year, as well as the aquaculture business in Vietnam, India and Thailand.

The two factors will help maintain a positive environment for the rest of the year. Therefore, CPF expects operational results to achieve its growth target of 5-8% this year.

CPF's is currently invested in 17 countries, including Thailand, covering more than 4,000 million people. The company's majority revenue source comes from overseas, such as China and Vietnam.