After the COVID-19 “test”, the economic recession “storm” seems to be an even higher dose of “test drug” and comes unexpectedly, leaving many businesses unable to react. How can we improve the quality of products and services, but at a more competitive price? It sounds contradictory, but it is an inevitable requirement!
Thanh Hoa Salanganes Nest Production and Trading Company (Hau Loc) has successfully connected to export products to the Chinese market in the early days of 2024, creating opportunities for businesses to expand production scale in the future. Photo: Minh Hang
Be proactive on the line between life and death
Although orders and revenue have decreased, Hong Duc Educational Equipment Joint Stock Company (Le Mon Industrial Park) still creates steady jobs for more than 200 workers. Along with strengthening internal management to reduce production costs, the company focuses on diversifying and improving the quality of products. Good, highly skilled workers, with designs that keep up with trends and good marketing skills are still focused on by the company in recruiting and training.
Ms. Vu Thi Ngoc Anh, the company's director, said: "Educational products and equipment are still identified as the company's strengths. Along with updating and approaching world trends, the company has hired experts to research, modify, and "localize" to suit the cost, shape, weather, and tastes of Vietnamese consumers. Typically, in 2024, the I20 student desk and chair product line is expected to be "launched" for retail distribution by the company, creating opportunities for consumers to use "foreign" designs at "domestic" prices. Instead of imported European products priced at tens of millions of VND, Vietnamese consumers can use this product for only 1 - 2 million VND. The advantage of the product is that it can be flexibly assembled and moved to suit different forms of education such as individual arrangements, group study, discussion or picnics...".
In the garment and footwear industry, while most businesses have had their orders cut, some businesses still maintain a stable number of orders and generate new customers, helping businesses "hold on" and provide jobs for workers.
On the days leading up to the Lunar New Year of Giap Thin 2024, 888 Company Limited (Quang Xuong) is one of the few enterprises whose workers are still working overtime from 1 to 1.5 hours/day to meet the orders received for the first quarter of 2024. Although the main markets are the US and EU - partners that are most heavily affected by the economic recession, in 2023, 888 Company Limited still has stable jobs for more than 1,100 workers. Reputation for quality and delivery progress are the factors that help the enterprise retain major distributors. Along with that, to compensate for the decrease in order output in traditional markets, the company has diversified into a number of potential markets in Asia and has successfully connected with 8 more partners.
Mr. Duong Van Lam, Deputy General Director, said: “Currently, the company has confirmed orders until the end of the second quarter of 2024. Since the end of 2023, we have developed a plan to collect samples, research additional machinery and train workers to meet the requirements of newly received orders and effectively carry out new production plans.”
“In the midst of challenges, we still see opportunities” - deep understanding of the market and optimism are the driving forces for businesses in the Thanh Hoa Seafood Import-Export Joint Stock Company ecosystem to continue to strive. “We analyze every negative impact and opportunity for each production spearhead according to developments every week, every month, every quarter, from which we have appropriate strategies at each time” - Mr. Nguyen Cong Hung, Sales Director of Thanh Hoa Seafood Import-Export Joint Stock Company - a subsidiary of the corporation, shared.
“For the Italian, Spanish, and Portuguese markets, clams are considered essential goods because they are closely linked to the consumer behavior and culinary culture of these countries. When the economy is in recession, these will also be the last items to be cut. Therefore, we are confident that this is a sustainable consumer product, worthy of investment, maintenance, development, and expected to restore output after difficult times. The surimi fish cake industry with traditional markets such as Japan, Korea, China, Thailand, Singapore, etc. is also a popular and essential consumer product. Along with that, this is also a product with industrialization in production, processing, and distribution, so consumption opportunities will be more favorable. These factors have shown the vitality of the profession, helping us to confidently maintain the profession, and at the same time return to do better,” Mr. Nguyen Cong Hung added.
And, to "do better", the company has restructured all operations, from market, products, capital to appropriate labor adjustment. At the same time, it has extended the value chains in production and business. Instead of just purchasing raw materials, the clam has a farming area of more than 500 hectares; at the same time, it has linked up with the Kim Son clam area (Ninh Binh) to build an ASC-certified raw material area for more than 889 hectares of Meretrix Lyrata clams. This is the highest certification in the seafood industry and the Kim Son clam area is currently the second largest clam farming area in Vietnam and also the second clam farming area in the world to have this international "Visa vip" certification (after the Nghia Hung - Nam Dinh farming area in the chain of Lenger Vietnam Seafood Company Limited). In the wood industry, the company has also extended the value chain to self-invest in exploiting raw materials, while diversifying wood pellet products...
By improving production activities such as using wood by-products as fuel, reducing energy consumption from coal, reducing labor costs, repair materials..., the enterprise has reduced costs by 7-8% - equivalent to profits in previous years, helping the enterprise increase its competitiveness in selling prices compared to other enterprises. In difficult times such as 2022 and 2023, the enterprise still maintains a basic output of about 14,000 tons of clams, equivalent to a revenue of 700 billion; 800 tons of fish cakes and fish meal with a revenue of 1,000 billion; the wood industry achieved a revenue of 500 billion and is estimated to reach 700 - 800 billion VND in 2024-2025.
Adapt to grow
Looking back, we can see that in many industries and fields, some businesses that were once famous decades ago have now been "dethroned", even struggling to survive if they cannot adapt to the recent major shocks. "To be successful, you need to be ready to change with the times" - a saying I quite like when shared by an experienced businessman. Thinking back on reality, there are young businesses that have just started but have also had certain successes when they have adapted to the trend.
In the first days of the new year 2024, Thanh Son Yen Production and Trading Company (Hau Loc), directed by Mr. Nguyen Van Tu, succeeded with the first order of bird's nest and stewed bird's nest exported to China - a market that is considered extremely large, especially for products made from bird's nest.
As a country boy, the journey to start a business was much more difficult for Mr. Tu due to lack of knowledge, experience and capital. Along with his own "study" and efforts, after 10 years, Mr. Tu has achieved certain successes. Up to now, the company has 6 owned bird's nest houses and 300 affiliated bird's nest houses in many provinces and cities, with 12 product lines under the Thanh Yen brand present in many provinces and cities across the country such as: stewed bird's nest, dry plucked bird's nest for export, bird's nest fibers, refined bird's nest... with revenue reaching 18 - 20 billion VND/year.
Mr. Nguyen Van Tu shared: “Before and after the pandemic, many industries faced difficulties; but in those difficulties, many businesses also had opportunities to develop if they took steps to keep up with the trend, especially the food product industry related to health, which is more cost-effective for consumers.”
Thanh Hoa aims to have the business sector contribute 65% - 70% of GRDP by 2025. The business sector will create jobs for about 500,000 workers. By 2025, the business sector's contribution to the budget will account for 65% of the province's total domestic revenue. |
According to Mr. Tu, in addition to always paying attention to improving quality, brand and price competition, since the COVID-19 pandemic broke out, the company has quickly approached the digital trend. In addition to investing in building a website to promote products, the company has established a separate communications department specializing in online sales through e-commerce channels such as titok, shopee, sendo. With this direction, the company's revenue increased by 200% during the pandemic, creating a premise for the company to expand production and business today. In 2023, Mr. Nguyen Van Tu was honored as one of 81 outstanding young entrepreneurs in 2023.
For Vietnam Agricultural and Medicinal Development Joint Stock Company (Thach Thanh), the brand was beginning to be positioned in the market when the COVID-19 pandemic and many other difficulties struck. Confidently being the first to "discover" and owning a 600-hectare raw material area in his hometown, along with analyzing the needs of consumers in daily life for essential oils made from medicinal herbs, especially from lemongrass, helped young director Nguyen Huu Minh confidently continue to research and find opportunities to survive and develop.
“To create jobs, increase income for people, and create positive impacts for the communities living in and around the raw material areas, the company has supported the establishment of production cooperatives, thereby reducing the pressure on production and care of raw material areas. Keeping up with the trend of digital business and distribution, we have streamlined the office staff, focused on online sales personnel; at the same time, focused on researching and developing new specialized products, especially to increase product value.”
Overcoming difficulties and starting a business with limited conditions, up to now, Vietnam Agricultural and Medicinal Development Joint Stock Company has had 10 production workshops, ensuring the consumption of raw materials from lemongrass leaves for Thach Son, Thanh Minh, Thanh Vinh communes with an area of about 600 hectares. The company currently has 10 essential oil product lines, of which 1 product has achieved 3-star OCOP certification, creating jobs for 30 workers. Workers in essential oil production cooperatives have an income of up to 150 - 200 million VND/person/year from "waste" such as lemongrass leaves, which have been discarded for many years.
Mr. Do Dinh Hieu, Director of the Vietnam Federation of Commerce and Industry - Thanh Hoa - Ninh Binh Branch, commented: It is difficult to list all the challenges of enterprises in the current context. However, the COVID-19 pandemic as well as the current fluctuations are also an opportunity to verify, screen, a high-dose "test" for enterprises. This is also an opportunity for "great screening", eliminating weak enterprises and enterprises with insubstantial operations, to create a fairer and more transparent business environment; at the same time, the market will also see joint ventures, closer and more sustainable links in production - administration - distribution - reinvestment. A period of restructuring enterprises is like a time when enterprises "examine" themselves, from which they can see the diseases that need to be "treated" early. Through this screening period, any enterprise that still exists and stands firm will certainly welcome new opportunities when the market recovers in the future".
Minh Hang
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