City enterprises make good recovery despite poor economy

Despite a global and domestic economic crisis, enterprises in Ho Chi Minh City have successfully adopted measures to achieve their business targets by year end.

A stagnant property market and sharp fall in the wood furniture business has not deterred a phenomenal success for Savimex Corporation, one of Vietnam’s best furniture exporters.

The company has achieved a yearly turnover of VND625 billion ($30 million), an increase of 50 percent compared to last year.

Bui Ngoc Quoi, Savimex Corporation’s manager, said Japan’s wood furniture businesses are switching from China to Vietnam due to the highly unstable political situation in China.

This is an opportunity for Vietnamese enterprises. Thanks to grasping opportunities in time, Savimex has signed as many contracts as possible for the whole year and first months of 2013, said Quoi.

Meantime, Le Dang Quang, director of Liksin Paper Company, said his company’s production and business started to take off in the fourth quarter. The company has asked all staff to work harder and the factories are working at full capacity to deliver consignments as scheduled. It is expected to reap a turnover of VND1 trillion (US$48 million) for the whole year, a year on year increase of 5 percent.

Saigon Industry Corporation (CNS) had launched promotional programs via supermarkets and fairs and cut down on spending that helped the company to achieve 75 percent of its first nine month target. The company is estimated to earn VND8 trillion ($385 million) this year, a year-on-year increase of 13 percent. It also paid VND3,500 billion tax to the government.

According to a report by the Ministry of Finance, after the government’s decision to relax and reduce taxes for enterprises, more than 6,000 enterprises resumed operations.  In addition to support from the government and related agencies, enterprises themselves thought up measures to overcome the hard times.

The Ministry of Industry and Trade convened a meeting to call for contribution of enterprises in consumption of commodities lying in stocks. The ministry asked home enterprises to consume commodities of each other to escape hard times.

According to economist Nguyen Duc Minh Hai, thanks to changes in bank policies to reduce interest rates for enterprises and a series of support measures by the government, enterprises have been able to make good recovery.

By Lac Phong - Translated by Uyen Phuong

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