The ones who earn big money in economic crisis
The ones who earn big money in economic crisis
While tens of thousand of businesses went bankrupted, a lot of others still can earn big money with small scaled business.
The benefits brought by crisis
AppeRice, a rice burger chain, which started up its business five months ago, has had tens of shops on advantageous positions in HCM City. AppRice has invested one million dollars on the production line, which is a big sum of money for the investor who cannot get the finance support from banks.
However, the investor not only sees the financial difficulties, but great advantages as well.
It is now easier than ever to lease retail premises: the rents are low, while the supply is profuse, which allows AppeRice to easily access consumers, cut down expenses and become more competitive.
In the economic crisis, people tend to look for stable sources of income instead of big but risky ones. Since the required investment rate is small, just VND50-100 million for an AppeRice shop, which fits the pockets of many people, a lot of investors have been running AppeRice shops under franchising contracts.
Facing the high inflation, people have to fasten their belt, but they still need to spend money on basic needs such as meals and drinks. Therefore, AppeRice still can attract a lot of customers, especially with the competitive prices.
Niche markets can bring fat profits
The Nui Ba Cable Car Company in Tay Ninh province, carrying passengers and cargoes with cable car, has a modest chartered capital of VND31.97 billion. However, its profits have been always very big in the last many years, far higher than the chartered capital, despite the economic recession.
In 2008-2010, the company’s profit grew by 15-16 percent per annum. In 2011, the growth rate jumped to 50 percent with the profit reaching VND47.76 billion, or 50 percent higher than its chartered capital.
The company planned to obtain VND62.5 billion worth pretax profit in 2012. However, it had got VND68 billion just by the end of September. The encouraging business result has been explained by the fact that the company has been concentrating on the core business field by providing services in the Ba mountain area, while it did not borrow capital and throw money into many other business fields which were out of its control.
The company’s shares have been traded at VND76,000 per share, the highest level now seen in the market. The share price has increased by 86 percent just over the last year from the deepest low of VND3,000 per share.
Earning fat profit by providing safe food
The Vietnamese husbandry met a very tough year in 2012, but some enterprises in the field still could find the ways to develop.
Lam Thanh Duc, the owner of the Thanh Duc fowl farm in Dong Nai province, believed that developing animal husbandry and making food was the wisest investment for now, because food can be consumed everyday, no matter they have much or little money. That explains why the demand for meat, dairy products and eggs keeps increasing.
However, Duc understands that smart consumers nowadays only want clean and safe products. And the thought then gave him a good idea to earn money – providing clean and safe products.
In early 2012, Duc decided to spend VND8.5 billion dong to install two German production lines which allow to raise animals in an automatic and clean process. Though the husbandry scale has increased recently, Duc does not have to expand the farm area. Meanwhile, he can save the production costs and earn more money thanks to the higher productivity.
