(PLO)- The unfavorable business situation caused many big men to suffer, forced to restructure and find new business ways to grow.
Currently, many large enterprises (enterprises) are not doing well and have to change their business strategies to grow. In this regard, experts said that besides the efforts of enterprises, the State’s policies need to support in the direction of reducing costs, reducing procedures and creating favorable business environment.
Many businesses large decline in profits
At the last annual general meeting of shareholders, Mr. Le Viet Hai, Chairman of Hoa Binh Construction Group, apologized to shareholders for letting the company suffer a loss for the first time in 35 years of operation.
“As the boatman of Hoa Binh, I accept responsibility when I have not fulfilled my obligation to develop Hoa Binh as expected, in accordance with the defined strategic vision, not commensurate with the beliefs and expectations of the company. shareholders,” said Mr. Hai.
In the two years 2020 and 2021, the fight with the COVID-19 pandemic has dealt a heavy blow to the entire economy with many consequences, including the construction industry. Hoa Binh Group alone decreased by 40% in revenue.
|Consumers tend to reduce spending, negatively impacting the revenue of essential goods. Photo: P.MINH|
Similarly, for the dairy industry, although it still maintains a profit of thousands of billions of dong, Vinamilk’s leaders recognize that there have been signs of decline year by year.
Ms. Mai Kieu Lien, General Director of Vinamilk, said that increased raw materials and transportation costs have affected product prices. However, the company could not raise prices to share difficulties with consumers in the difficult economic context. In addition, exports are also affected by the context of inflation as well as the influence of the exchange rate, which has caused weak purchasing power.
Standing in the top group of seaports, Gemadept is also under pressure in terms of revenue and profit due to the decline in import and export situation. Mr. Do Van Nhan, Chairman of the Board of Directors of Gemadept, said that the seaport and logistics industry is in a difficult period from the end of 2022 and may last until 2023. The market’s resilience will depend on economic growth. the world economy, the demand for goods in the main export markets of Vietnam.
A series of bottlenecks make it difficult for businesses
According to economic expert Tran Thanh Hai, the business results of affected enterprises are in the general context from both internal and external. A series of bottlenecks in the real estate and bond markets have plagued many construction giants.
Meanwhile, the economy is still under pressure from the world economic context such as high inflation affecting Vietnam’s export markets. This has affected domestic enterprises when facing a shortage of orders, affecting export opportunities, causing them to reduce working hours and lay off workers.
In turn, consumers see uncertain risks in the future, so they tighten spending and reduce purchasing power. This has negatively impacted the revenue of businesses in the consumer staples industry.
According to Mr. Dau Anh Tuan, Deputy General Secretary and Head of the Legal Department, Vietnam Confederation of Commerce and Industry (VCCI), after half a year of business not as expected, many businesses are still very concerned about the remaining time. In the second half of 2023, the business does not know if it will be brighter when many industries have not seen the positive, especially the export industries.
Find the driving force for growth
Finding a way out is the way that many big companies seek growth and profit efficiency in the near future. Vietnam Rubber Industry Group (VRG) has reduced revenue by 15% in the first quarter of 2023 because rubber latex prices are still low, demand for rubber products has not been able to recover.
VRG’s management said that in order to be profitable in the near future, in addition to increasing the efficiency of its main business segments, the unit focuses on developing industrial parks and building social housing right in the project areas. industry.
Mr. Tran Dinh Long, Chairman of Hoa Phat Group, assessed that the most difficult period of the steel industry has passed, but the company still has to do business carefully based on domestic and foreign market demand. To create better growth, the company will implement 10 industrial park projects and deploy a mega-city of 300-500 hectares.
Meanwhile, Mr. Le Viet Hai said he would renew himself with a comprehensive restructuring strategy to increase cost and business efficiency. At the same time, the company will focus on debt collection. In addition, transferring companies, selling shares to foreign partners will help the company have better business resources.
According to Prof. Dr. Hoang Van Cuong, a member of the National Assembly, Vice Rector of the National Economics University, the Government has taken many timely measures to support businesses such as extending, delaying or reducing taxes.
However, authorities also need to study and apply many specific policies for each industry and business field to support businesses. For example, consider reducing income tax for exporting enterprises.
In addition, due to the lack of orders, many businesses had to reduce the working hours of employees. Therefore, the State also needs to consider the extension and postponement of the obligation to pay social insurance contributions for these enterprises in order to reduce the cost burden for them.
Need help from the State
According to Mr. Dau Anh Tuan, Deputy General Secretary and Head of the Legal Department of VCCI, businesses are still in dire need of support from the State.
A series of recent policies have helped remove difficulties for businesses. A typical example is the 2% VAT reduction. However, businesses are still very worried about the implementation process, so they need to guide the implementation in the most convenient way. Or the VAT refund is currently still blocked, especially difficult for businesses in the fields of agricultural products and electronics. Therefore, the policy of creating capital for enterprises must be carried out synchronously, not only with bank loans but also with tax refund.
|Orders decreased, affecting the revenue of many businesses, including those in the garment sector. Photo: P.MINH|
“In the current difficult economic context, state management agencies need to uphold the spirit, if not creating more favorable conditions for businesses, do not cause difficulties and create costs for them. This is an important activity to supplement the business investment activities of enterprises”, – Mr. Tuan recommended.