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Hit by economic woes, firms refuse to throw in the towel
Despite being hit badly by the global economic crisis, many Vietnamese firms have managed to stay afloat, with quite a few even achieving growth.
Economists point to apparel and footwear companies as the most vulnerable to the economic downturn.
In Viet Nam some big names like the Ha Noi-based Garment Joint Stock Company No 10 and Hai Phong Leathershoes Company have suffered. The former has seen a 20-30 per cent decrease in orders from last year while the latter has seen orders for sports shoes plunge by as many as 40 per cent since the fourth quarter of last year.
But Le Hong Khoa, president of the Binh Duong Textile and Garment Association, said many businesses had taken it on the chin and struggled on.
Over 300 garment companies in the province had orders until the end of the first quarter but they were likely to dry up later, he said.
"Buyers have been constantly asking for price cuts. Therefore, we will have to resume negotiations soon after Tet."
To get contracts, the companies were trying to cut costs so that they can reduce prices, he said.
A Ha Noi footwear company said that in the past it often rejected low-priced orders but it was now ready to accept them.
These would not fetch much profit but help retain clients and workers, it said.
Le Quoc An, chairman of the Viet Nam Textile and Apparel Association (Vitas), said six business delegations had gone to the US to promote exports and were now waiting on prospective clients.
Others struggle on
Firms in other industries are also trying hard to remain in business.
Though newly established, Jolie Siam Director Le Thanh Tu made it to Businessweek's list of Asia's best Young Entrepreneurs last year.
The company was set up in response to a need for reception agencies for international visitors holding conferences or events in Viet Nam.
Tu said: "Since the market's purchasing power has decreased, many enterprises need skilled sellers and marketers to sell their products.
"We have already received many orders from supermarkets and companies," he said.
VietNamNet, Viet Nam News
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