State firms more resilient than foreign, Vietnamese private companies: survey

Business resilience is highly correlated with level of digitisation, the Business Pandemic Resilience Diagnostic conducted by Grant Thornton...

Findings of the Business Pandemic Resilience Diagnostic conducted by Grant Thornton Vietnam

The diagnostic rated the business resilience of each participating company amid the Covid-19 pandemic, and analysed factors of resilience along six key aspects of business operations – finance, supply and demand, external factors, people, and digitisation.

Fifty six per cent of companies experienced a huge negative impact with earnings hit by more than 20 per cent, and only 19 per cent experienced an impact of less than 10 per cent.

State-owned enterprises (SOEs) were more resilient than foreign and private Vietnamese companies, and listed companies were the least resilient, the diagnostic based on self-assessment by participating companies found.

Technology, retail and fast-moving consumer goods (FMCG) were the most resilient, while real estate and hospitality were at the other end of the scale.

Retail and FMCG companies tended to be strongest in digital factors but weakest in people and finance.

Technology companies were unsurprisingly strongest in digital factors but weakest in supply and demand.

Banking and finance companies were unsurprisingly strongest in finance factors but weakest in supply factors.

 

Manufacturing companies tended to be strongest in finance but weakest in supply, and real estate and hospitality companies tended to be strong in digital factors but weak in supply.

The diagnostic provided three customised recommendations to each company to improve their resilience based on their individual strengths and weaknesses.

Three recommendations, increasing online channels, protecting the business from cyberattacks, and increasing the diversity of the supply chain, were most commonly made and applicable to most smaller companies.

This suggests that the most resilient companies have a strong online presence, have invested in IT security systems and have a wider variety of suppliers.

Also recommended for some participants was to provide work-from-home (WFH) training, upgrading IT systems to improve analytics and updating their business continuity plan.

WFH, the newest and hottest term amid the pandemic, has actually been pushed by many consultants for quite a while now.

The diagnostic found that shifting to WFH was not such a big problem, especially when there really was no other choice.

It might have seemed challenging at first with all the changes it brought, but the data suggests that most companies are doing just fine with it. —VNS

 
 

Other News

.
E-commerce M&A activities ready to take centre stage
E-commerce M&A activities ready to take centre stage
BUSINESSicon  25/11/2020 

As brick and mortar shopping falls in popularity during the pandemic, online shopping platforms took have increased presence among Vietnamese consumers. 

Realty stocks are attractive: experts
Realty stocks are attractive: experts
BUSINESSicon  25/11/2020 

Though difficulties caused by COVID-19 were reflected in the business results of listed realty firms, experts are still optimistic about the market. ​

Banks to deduct tax payments from clients’ accounts
Banks to deduct tax payments from clients’ accounts
BUSINESSicon  25/11/2020 

Banks will be able to deduct the tax payments of suppliers based in foreign countries—that conduct e-commerce or digital transactions with organizations and individuals in Vietnam—from their bank accounts,

Vietnamese farmers sell farm produce via smartphones
Vietnamese farmers sell farm produce via smartphones
FEATUREicon  25/11/2020 

An eel farm of an older man brings turnover of nearly VND10 billion a year, and 99 percent orders are online. Another farmer sold 26 tons of rambutan by contract after putting goods on online sale.

Aviation industry awaits new bigger bailout
Aviation industry awaits new bigger bailout
FEATUREicon  25/11/2020 

Private airlines including Vietjet Air and Bamboo Airways struggling to survive are looking forward for a new support package to maintain their operations.

Black Friday: World under Covid-19 bans, but Vietnamese excited
Black Friday: World under Covid-19 bans, but Vietnamese excited
BUSINESSicon  24/11/2020 

Around the world, Black Friday this year may be very dim because of Covid-19 pandemic. But in Vietnam, people are enjoying the safety of a "new normal", squeezing together to buy discounted goods at shopping malls.

Vietnamese industrial market update – Rise of coastal industrial zones
Vietnamese industrial market update – Rise of coastal industrial zones
BUSINESSicon  24/11/2020 

The demand for industrial property at coastal regions is high, but the supply of industrial land ready to hand over in industrial zones in both regions was scarce.

Improved business environment is the key to FDI not tax and land incentives
Improved business environment is the key to FDI not tax and land incentives
BUSINESSicon  25/11/2020 

ASEAN countries need to choose between recovery based on wasteful competition for investment or coordination, cooperation, and joint hands to generate sustainable tax revenue to spend on health, education,

FDI possible in digital cross-border services
FDI possible in digital cross-border services
BUSINESSicon  24/11/2020 

With regional nations racing to lower their taxes in order to woo more investment, which may dent their coffers, creating feasible policies for collecting taxes is expected to help reach their goals of attracting more high-quality funding.

RCEP will not worsen trade deficit: ministry
RCEP will not worsen trade deficit: ministry
BUSINESSicon  24/11/2020 

The Regional Comprehensive Economic Partnership (RCEP) would not worsen the trade deficit Vietnam was running with signatory markets, according to the Ministry of Industry and Trade.

HCM City hopes to attract investment by allotting more lands in IPs, EPZs for infrastructure
HCM City hopes to attract investment by allotting more lands in IPs, EPZs for infrastructure
BUSINESSicon  24/11/2020 

HCM City authorities plan to offer competitive land rents and other incentives at industrial parks (IPs) and export processing zones (EPZs), and earmark more lands for building infrastructure to attract investment.

HCM City seeks ideas for underground space planning through international competitions
HCM City seeks ideas for underground space planning through international competitions
BUSINESSicon  24/11/2020 

The HCM City Department of Planning and Architecture has reported to the city People’s Committee on underground space planning and underground space management regulations.

RCEP will not make the trade deficit with China worse: MOIT
RCEP will not make the trade deficit with China worse: MOIT
FEATUREicon  24/11/2020 

Worries have been raised that RCEP will lead to a higher trade deficit with partners, especially China. But the Ministry of Industry and Trade (MOIT) doesn’t think so.

Lofty goals achievable through stable regulations
Lofty goals achievable through stable regulations
BUSINESSicon  25/11/2020 

The Ministry of Planning and Investment aims to have 15 Vietnamese private companies with market capitalisation of over $1 billion each by 2025, with that target increasing to 20 by 2030.

Preliminary decision on tyre exports flusters the market
Preliminary decision on tyre exports flusters the market
BUSINESSicon  24/11/2020 

The global demand for rubber and tyre products has been consistently increasing throughout the last decade, with Vietnam being one of the top suppliers of these items.

17th CAEXPO to benefit China-Vietnam cooperation
17th CAEXPO to benefit China-Vietnam cooperation
BUSINESSicon  23/11/2020 

China and Vietnam are friendly neighbors connected by mountains and rivers, and have achieved fruitful results in the sustained economic and trade cooperation. 

The path for digital business in Vietnam
The path for digital business in Vietnam
BUSINESSicon  26/11/2020 

Digital transformation is taking place across industries in Vietnam, with more enterprises succeeding in this journey. 

VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 25
VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 25
BUSINESSicon  25/11/2020 

State Bank Operations Centre adjusts down USD rate for first time in 2020

More M&A deals in the banking sector next year: local media
More M&A deals in the banking sector next year: local media
BUSINESSicon  23/11/2020 

Vietnam’s equity market may witness big merger and acquisition (M&A) deals in 2021 as local banks are trying to lure foreign capital on the country’s participation in international trade deals.

Office rental rates to fall by end of year: experts
Office rental rates to fall by end of year: experts
BUSINESSicon  23/11/2020 

Office rental rates will continue to drop while supply will be in the non-central business district areas in HCM City in the coming time, according to property research companies.

 
 
 
Leave your comment on an article

OR QUICK LOGIN