Businesses encouraged to restructure
Businesses encouraged to restructure
Vietnamese companies should restructure and streamline their operations in 2014 to maximise efficiencies, the Chairman of the Viet Nam Chamber of Commerce and Industry (VCCI), Vu Tien Loc said.
The official told The Voice of Viet Nam (VOV) radio station that companies should reassess their corporate plans and strategies for coping with business risks if they hope to gain a competitive advantage in the global markets, while expanding their businesses.
Last year was a difficult year for businesses, with the number of companies either temporarily or permanently shutting down increasing dramatically.
However, some businesses managed to not only survive but thrive in the market, thanks to strategically implemented business strategies, he noted.
One good example of a successful company is VinaCommodities, which specialises in exporting and importing farm produce and plant oils.
The company not only maintained its production activities but expanded them by successfully launching a line of high-end products in the domestic market.
The VOV quoted Tran Van Toan, president of the management board of VinaCommodities, as saying that by comprehensively tapping into its advantages and establishing an effective risk management system, the company successfully maintained the growth rate of over 40 per cent in 2013.
Currently, the company has more than 500 employees. It plans to recruit more employees this year, as it continues to expand production capacity and attempts to achieve a growth target of 50 per cent.
Toan also noted that the signing of the Trans-Pacific Partnership (TPP) Agreement in 2014 will create favourable conditions and increase the opportunities for businesses to penetrate foreign markets.
Director of the Tuan Hung Construction and Technology Joint Stock Company Le Xuan Hung remarked that last year, his company chose to invest its capital and human resources only in highly feasible projects.
Concurrently, it spent a large amount of time and effort in locating partners and co-operating with large companies in order to reduce risks, he told the radio station.
Another factor that helped his company overcome difficulties was the special attention paid to human resources.
As a result, the staff has remained loyal and helped in accomplishing the company's goals.
VCCI Chairman Loc said that despite the economic challenges of 2013, over 50,000 newly established businesses and 10,000 businesses resumed production activities.
The outlook for 2014 remains challenging. Gaining or maintaining a firm foothold in the local market remains critically important to businesses, added Loc.
He strongly recommended that companies restructure and streamline their operations, focusing on key areas for development. In addition, companies should implement modern management techniques, including the latest scientific and technological advances.
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