General Director of Viet Hong Textile and Dyeing Joint Venture Company - Hang Vay Chi - said the company’s conversion during the pandemic went from "60%-40%" to "10%-90%".

In previous years, Viet Hong's domestic market accounted for 60% of revenue, and the remaining 40% came from exports, but now the rate is 10% - 90%.

To get this rate, the company has focused on changing marketing behavior, investing heavily in research and development. During the epidemic when travel between countries was impossible, the firm saved design fees.

“This is a God-given opportunity. We hire native designers with a salary of 5,000-6,000 USD per month and native sale managers. For example, in the US market we hire American employees because they understand the local market. We also promote online transactions to save time and costs,” said Chi.

Meanwhile, Tan Quang Minh Company (Bidrico) General Director Nguyen Dang Hien has turned to domestic materials instead of imported goods. Previously, Bidrico imported oranges from the United States, and apples from Israel for beverage processing, but now it seeks domestic raw materials.

Thanks to the use of domestic materials, the cost of raw materials has fallen, so the company can stabilize its selling prices during the time of pandemic.

In addition, according to Mr. Nguyen Dang Hien, due to the impact of the Covid-19 epidemic, his company’s export markets maintain only two countries instead of 14 as before. It has to take advantage of the domestic market, and review each distributor to maximize market share in order to offset the decrease of foreign markets. For example, it sells soft drinks to not only restaurants and hotels but also schools, hospitals. In addition, the company expands sales via online channels.

Businesses excited for year-end season

Besides Viet Hong and Bidrico, many businesses in Ho Chi Minh City are seeking to gradually recover and adapt.

A representative of a foreign-invested (FDI) company said that although there are more Covid infected workers, everything is under control. The firm has developed various scenarios and applied strict measures at its factories.

Businesses in the Saigon Hi-Tech Park have joined hands to set up an isolation area on the spot with a total investment of about VND1 billion, with 200 beds for their employees.

Thanks to the efforts of the business community, the recovery speed is still slow, but there are signs of gradual improvement. According to the Ho Chi Minh City Statistics Agency, the index of industrial production (IIP) in November 2021 increased by 13.3% compared to October. However, the city’s industrial production index in the January-November period in 2021 decreased by 15.5% year on year.

Nguyen Phuoc Hung, Vice President and General Secretary of Ho Chi Minh City Business Association (Huba), said the activities of local enterprises have gradually normalized with about 96% of businesses resuming operation. A number of industries have entered the peak season at the end of the year.

“In this race, the service sector runs slower than the manufacturing sector due to the limitations of the epidemic situation. However, on the momentum of safe and stable production, businesses need optimism to resume activities as before. A light can be seen at the end of the tunnel,” said Huba Vice President.

Motivation for businesses

Mr. Nguyen Phuoc Hung said when businesses resume operation, resources are very important. So the need for capital is huge. The business community wants the banking system to facilitate easy access to capital so that it can restore production. In addition, the tax policy needs to last until the end of 2022 to create momentum for businesses.

Dr. Tran Quang Thang, Director of the Institute of Economics and Management of Ho Chi Minh City, said that businesses have adjusted the export market, and diversified consumption channels instead of focusing on the same place as before. What is needed is for the government to control the epidemic well, and then the recovery speed will be faster.

In the past 11 months, total registered FDI capital increased to over 8 billion USD, showing the confidence of foreign investors in the Vietnamese market.

From an expert's perspective, Mr. Thang acknowledged that the recent overseas business trips of State and Government leaders have brought positive results. Specifically, partners’ great support for vaccines created peace of mind among the people. Along with that, there have been specific international cooperation commitments, promoting trade and service activities, and creating motivation for businesses after the pandemic.

Tran Chung

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