VietNamNet Bridge – Sharing the same business premises with others, relocating the offices to the suburbs, laying off workers and cutting down all possible expenses are the things most businessmen are doing to save every dong to survive the current difficult period.

Managers receive VND3 million a month

The board of directors of the Au Viet Securities Company, one of the leading securities companies in Vietnam with the chartered capital of over VND300 billion, has consulted with the shareholders about the dissolution after 7 years of operation.

In 2012, the company earned only VND2.69 billion from the brokerage service, a sharp fall of over 80 percent in comparison with the year before. As a result, the company incurred the loss of VND10 billion in the year and the accumulative loss of VND151 billion.

Therefore, each of the members of the board of directors now receives only VND3 million in monthly salary, which is equal to the monthly pay to a blue collar worker in industrial zones.

Quang, an executive of a service company in Me Tri Ha area, said the company is considering sharing the same office with others to cut down expenses.

“Only 3 of us have been present at the office regularly. Therefore, a 60 square meter office is too large for us. We would re-lease 2-3 seats on the first floor and one room in the second floor to ease our burden,” he said.

“If we only lease 3 seats for 3 workers, we would be able to save the sum of money big enough to pay to one worker,” he continued, adding that just several millions of dong would be a fortune for the company in the current difficult period.

Borrowing money from staff by delaying monthly salaries is the method the company located on Le Van Luong Road applied. The 2-year frozen real estate market has made the company’s cash exhausted and put the company on the brink, even though it has cut down 70 percent of staff.

Le Dinh Long, Director of Hacota Ltd in HCM City, said he has cut down the budgets for stationary, electricity, water, fuel and reception. In 2012, the company did not have summer vacation because of the company’s difficulties. Every worker there has to undertake some additional jobs, which allows them to get higher income, while Long does not have to maintain a too big labor force.

Practicing thrift or dying

Bui Quoc Loi, Director of Minh Giao Trade and Technique Service, said it requires more exertion to find jobs nowadays. In the past, the company just had to compete with 5-7 contractors to win the bids, while it now has 20-23 rivals.

In late 2012, Loi hoped that Minh Giao would have 5 contracts to implement, but to date, only 2 have come.

Meanwhile, Deputy General Director of Dat Xanh Tay Nam Real Estate Company -- Dang Chinh Thang, complained businesses now try to “play dirty tricks” to eradicate each other.

In 2012, a client planned to buy a project of Dat Xanh. However, one day, the client read on a local newspaper that the same project was offered by another company at a lower price. The client decided to break with Dat Xanh and contact the other seller. However, the client was then told that the products were sold out.

Manh Ha