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Companies manage to stay afloat during finance crisis
Despite being hit by the global economic crisis, many Vietnamese firms have managed to retain operations, with quite a few even achieving growth.
Beginning last September, the International Garment Company in southern Binh Duong Province saw orders decline in key markets, forcing the company to scale down production and reduce workers' hours.
But its belt-tightening has resulted in a leaner, more competitive operation. To cut costs, it worked with the provincial Garment and Textile Association to negotiate the price of input materials from suppliers.
"We were very satisfied with the negotiation results, as suppliers agreed to cut prices by between 20 and 30 per cent," said the company's director, Phan Le Diem Trang.
The situation has helped the company lower its production costs, making products more competitive.
Since March, the company has received many long-term contracts, and resumed operations at full capacity. Workers now must work overtime to fulfill export deliveries, Trang said.
In addition, the company intends to recruit more workers to meet its production expansion plan.
Another company, Sao Nam Wooden Products Company in Binh Duong Province, has had exports drop by 50 per cent since last October.
The situation became worse when the company did not receive export orders last November, said its director general Do Thi Kim Loan.
This forced the company to lay off half of its labour force, retaining only 60 workers to make lower-priced products for the domestic market.
Similarly, the company also bargained again with the providers of raw materials about the prices, Loan said.
The company has sought new clients through trade fairs, its website and online advertisements. It has reorganised its production activity so that it operates more efficiently.
The company's efforts have resulted in an increase in export orders.
"We have raised the salary by 15 per cent, compared to last year, to around VND2.5 million a month. We will employ between 50 and 100 more workers to hasten production and meet client demand," Loan added.
VietNamNet, Viet Nam News
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