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Despite big difficulties, enterprises still considering expanding business
Up to 32 percent of enterprises said they are still considering the business scale in 2012, despite the big anticipated difficulties, when they have finished the process of restructuring and can see improving market signs.
The big sum of money obtained after the affair of selling 95 percent of stakes of Diana Company to Japanese Unicharm Group would serve as a new financial source for Vietnamese Doji Group, helping it continue the plans on expanding business scale which was kicked off in late 2011.
While declining to give concrete figures (local newspapers have estimated that Doji earned 128-180 million dollars from the affair) about the sale, Nguyen Minh Phu, Chair of Doji Group said that this is a big sum of money and it is really valuable in the current circumstances, where most businesses find it difficult to access bank loans.
“With the current resources, we are ready to jump into the new business fields, including the real estate sectors, if we can find good opportunities,” Phu said when talking about what businesses should do to ease the reliance on bank loans.
Expanding business scope is also the thing Vinatex Da Nang, a garment company, is considering. A project worth several hundreds of thousands of dollars has been discussed, when Japanese Apron Company suggested the expansion of the contract on making labor protection products after the success of the first contract signed in August 2011.
If the two sides can reach an agreement, Ho Viet Thanh, a senior executive of Vinatex Da Nang said, the 6000 square metres of the workshop premises in Da Nang City would be upgraded, while the Japanese partner would provide technical specialists, take responsibility for the outlet of the products, and pay all the workers of the production lines.
After the big natural calamities in Japan and South East Asia, a lot of Japanese manufacturers have been flocking to Vietnam to discuss the plans to production cooperation in 2012. The plans not only pave the way for Vietnamese enterprises to develop production, but also facilitate them in investing to upgrade technologies and improve productivity, which help upgrade quality and reduce the production costs.
It seems that the positive results of the plans to restructure businesses recently can serve as the driving force for enterprises to consider expanding operation scale, even though they have been warned about the big difficulties ahead.
A survey which has been conducted by the Vietnam Chamber of Commerce and Industry VCCI shows that 65 percent of businesses feel satisfactory about the quality of products which has been upgraded clearly after the businesses have undergone the restructuring process. Meanwhile, 57 percent of businesses say they can see the productivity has improved.
The survey has also found the higher percentage of businesses which believe in the growth of the domestic and export markets, in the improvement of the legal framework, the service of the civil servants, and the ability to access the market information than in the fourth quarter of 2011. This is the foundation that makes 13 percent of businesses believe they would have better business result in 2012, and 57 percent of businesses believe in the stability in the conditions for production and business in the first quarter of 2012.
Nevertheless, 30 percent of polled businesses believe that the business conditions are worsening. The enterprises have cited the difficulties to access bank loans and the lack of skilful workers.
The possible macroeconomic instability has also been cited as one of the worries of the business circle, but it is not the biggest worry in the VCCI’s survey like in a similar survey conducted by the Vietnam Business Forum. However, businesses say the stability can only bring real impacts by the second quarter of 2012.
vietnamnet
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