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Firms think outside the square
Firms are stepping into more practical fields to survive current tough market conditions.
For example, Son Ha International Joint Stock Company’s (SHI) extraordinary shareholders meeting rubber stamped a move to build a commercial centre next to its head office to jump into the retail sector in 2012.
The move showed that retail sector would be the core in SHI’s long-term business strategy.
During 2010-2011, Son Ha claimed industry, property, waste treatment and retail its core businesses. However, in fact only industry brought it dividends.
To make inroads into the retail sector, SHI will establish a subsidiary providing retail services with chartered capital of VND10 billion ($476,000), while trying to divest from the real estate sector and delaying investment in waste treatment.
Speaking of the strategy change, SHI’s deputy general manager Pham Phu Truong said: “SHI prefers the hypermarket model like Big C and Co.opMart other than traditional modest-size supermarkets which are now commonplace.”
Similarly, Bac Viet Steel Co shifted into producing high-tech products.
“In 2012, the company will shift into operating under original equipment manufacture model which requires less investment capital while we can experiment with multiple business ideas and products and can quickly enter the market,” said Tran Anh Vuong, general director of Bac Viet Steel.
Head of Saigon Asset Management’s (SAM) financial department Huynh Thien Quan said market factors and macro-economic situation greatly affected enterprises’ business plan feasibility. Hence, parallel to balancing budgets, market factors’ adequate analyses were crucial in business planning for enterprises at this time.
Song Da Investment Construction and Development Company recently announced it would review the list of investment projects in 2012 and focus on ongoing projects.
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