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Workers and businesses "drowned" after the COVID-19 pandemic

Thursday 17, 09 2020
The COVID-19 pandemic is making businesses feel "breathless" and constantly struggling to survive.
Workers and businesses drowned after the COVID-19 pandemic

➢   Business is more diversified

Deputy general director of a joint stock company specializing in food production said that from the beginning of 2020, when the Covid-19 outbreak broke out, the company's revenue fell sharply. Realizing that this situation could not continue to prolong, the board of directors consulted with shareholders to redirect investment to the health sector. Up to now, the company's N95 mask has a foothold in the domestic market, exported to the US. The company is about to import some more equipment to expand the scale of export production. "The company also has a plan to produce medical gloves and needles because if there is a vaccine, the world will need needles to vaccinate, doctors - doctors still need medical gloves every day" - deputy general manager of an optimistic enterprise.
 
The long-lasting COVID-19, although making the business more difficult, also helps the businessman become more sensitive to his or her business. According to this general director, the difficult situation will last for at least 1-2 years, so businesses must calculate solutions for themselves: ready to apply technology, digitize in production - business process and always change their sales methods. Moreover, businesses should always boldly redirect to find new opportunities.
 
Viet Tourism Communication Joint Stock Company also took advantage of the opportunity to get rich during this period. Mr. Tran Van Long - general director of Vietnamese tourism company said, due to the influence of Covid-19 translation, his company encountered many difficulties. While waiting for the recovery of tourism, the company turns to selling agricultural products, hand sanitizer; at the same time building a response scenario in case of an epidemic lasting 3 months, 6 months, 1 year and 2 years ...
 Business is more diversified

According to Mr. Long, thanks to the proactive response, since April, when the whole country implemented a social stretch under the direction of the Government, Viet Tourism Communication Joint Stock Company changed direction to export medical masks. From a few original machines, up to now, the company has factories to export medical masks in District 12, Cu Chi and Hoc Mon districts (HCMC) and 2 provinces of Long An and Tien Giang. In the North, the company associates with its partners to open 2 more factories; cooperated with Ecom Net Investment Joint Stock Company to exclusively distribute medical masks, along with anti-epidemic costumes, and disposable medical products. The company also invested in a factory in Vietnam to produce meltblown antimicrobial membrane materials for masks. The difference of this mask is that 100% of the raw materials are sourced from Vietnam, meeting the standards of the Ministry of Health. The company's products are also exported to the US. Investments in the health sector are long-term, not opportunistic, or seasonal. With current disease developments, tourism may take a few more years to recover. When the market revived, the company continued to develop tourism in parallel with the production of medical supplies. Viet travel company has a detailed plan to open a factory to manufacture medical products in the US in the future. Currently, the project has been approved by the state of Maryland.

➢   Take short-term goals to develop long-term goals

According to data from the Department of Business Management - Ministry of Planning and Investment, in the eight months of 2020, there are 68,856 enterprises withdrew from the market in the whole country; Of these, 34,288 enterprises registered to suspend business for a definite period, 24,215 enterprises waited for dissolution, 10,353 enterprises completed dissolution procedures. On average, 9,249 enterprises withdrew from the market each month, an increase of 15.9% compared to the average of 8 months of 2019. The above figures show that enterprises were "drowned", blasted after 2 outbreaks at the beginning of the year and April to present.
Take short-term goals to develop long-term goals 
So, in the coming time, how many businesses will have to "quit the game" when the COVID-19 pandemic is still prolonged and the market is still difficult?
 
The question is, in the coming time, how many companies will "leave the game" when the epidemic is expected to last and the market is still difficult? Mr. Duong Hoan Tuyen, General Director of LEO Co., Ltd. (owns Ninh Khuong hand-embroidered brand), said that more than anyone, businesses must save themselves, find ways to take short and long, "hold their breath across the river".
 
According to Mr. Duong Hoan Tuyen - General Director of LEO Co., Ltd., the current business strategy is to calculate cash flow by week, instead of by month and year as before. Enterprises need to remove each knot to find opportunities to overcome. "The solution we are doing is negotiating to freeze existing debts to reduce cash flow pressure. Negotiate with salespeople to get lower wages and get commission on products sold. Negotiate with the kernel. Office staff get low wages and get debited, the company later returns. Negotiate with all suppliers to reschedule. Negotiate with landlords to lower rental rates ... All these solutions are to preserve and maintain operations, do not let businesses shut down "- Mr. Tuyen said about the solution to stay in translation.
 
Continuously from July up to now, the general director of an export seafood processing company travels like a shuttle between Ho Chi Minh City and the provinces from Quang Ngai to Ca Mau to meet with partners and partners to visit and negotiate. contract again. "I discussed directly with them the company's difficulties and asked the parties to share. The results were quite positive, most suppliers approved the price adjustment, down 5% -15% compared to before. While the export orders to the main markets decreased by 80%, the domestic market is still too new, the cost reduction is very meaningful "- said this general director.
 
In addition to being successful in negotiating raw material prices, the company also processes private labels for a number of supermarkets in large quantities, maintaining jobs for workers.

Source: 24h, Translated by An Nguyen - Vietnam Credit

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Investment

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