Enterprises find opportunities amid the COVID-19 pandemic

Medical mask production at the factory of Ecom Net Investment Joint Stock Company.

Fight against the storm

The business community has neverhad to operate in such harsh conditions.The pandemic causes many businesses to break their supply chains, lack raw materials, interrupt international trade and business, narrow the market, and increase depleted resources leading to production stagnation.

However, in that context, businesses have been proactive, creative, actively innovating andmaking solutions to restructure production and business activities, finding opportunities to quickly transform technology, marketsand create new products.

Typically, the story of overcoming the crisis of Vietnam Tourism and Communication Joint Stock Company when the outbreak of Covid-19 caused the tourism industry to freeze, a series of companies had to shut down and stop operating.

Speaking at aseminar to share experiences of overcoming Covid-19, which took place on October 12, Mr. Tran Van Long, General Director of Vietnam Tourism and Communication Joint Stock Company, saidin order to ensureincome for staff, I have to try my best, from importing watermelons, dragon fruits to hand sanitizer to sell. However, the income from these jobs is only temporary, the company has turned to production and business. Initially, it was relatively difficult to have capital, when importing faulty machinery. However, we were not discouraged. Viet Tourism has cooperated with Ecom Net Investment Joint Stock Company to exclusively distribute medical mask products, anti-epidemic equipment and disposable medical products.

So far, the company has plants formanufacturingmedical masks in District 12, Cu Chi, Hoc Mon (HCMC) and Long An. In the North, there are also two factories. In particular, the scale of the factory in the US is about 15,000 m2, producing masks, protective clothing, antiseptic hand gel and equipment.

It is expected that in November this year or early 2021, it will startexporting masks. Our brand in the US - EcomNet has signed a contract to participate in the supply chain of medical products with the US medical group Spartan to provide our products to 360 hospitals in this country. We participate in this supply chain with a value of US$2.1 billion within 3-5 years, Mr. Tran Van Long said.

Mr. Vo Van Khang, Deputy General Director of Hung Thinh Group Joint Stock Company, said that up to 620,000 enterprises in the real estate sector went bankrupt and stopped working during the pandemic.

In this context, it is very important to optimize resources for a business. Thanks to restructuring from two years before transforming to a corporation model, enterprises have quickly got an overall picture, from which the right segment can be selected for resources. As a result, businesses do not see reduced sales, and at the same time investment projects are also increasing. Notably, Hung Thinh did not cut staff during the pandemic, but human resources increased by 8% compared to 2019, especially middle and high-class personnel.

Reach the world

Not only affecting the domestic market, the complicated developments of Covid-19 have disrupted international trade, goods import and export activities of Vietnam.

However, according to the General Statistics Office, in the first nine months of 2020, Vietnam recorded a trade surplus of nearly US$17 billion as a bright spot of the economy.This trade surplus was 2.6 times higher than the same period in 2018 and 2.3 times higher than the same period in 2019.

It is including the contribution of exports with US$202.9 billion, up 4.2% compared to the same period last year with 30 items with export turnover of over US$1 billion, accounting for 91.3% of total export turnover, of which phones and components have the largest export turnover, reaching US$36.7 billion; electronics, computers and components reached US$32.2 billion; textiles and garments reached US$22.1 billion; machinery, equipment, tools and spare parts reached US$18.2 billion; footwear reached US$12.1 billion; wood and wood products reached US$8.5 billion; means of transport and spare parts reached US$6.5 billion; seafood reached US$6 billion.

It is noteworthy that the domestic economic sector increasingly asserted its contribution role when the 9-month export turnover value reached US$1.8 billion, up 20.2% compared to the same period last year.

The increase in exports during the pandemic proves that many countries still put Vietnamese goods in priority. Achieving the above positive results can include the efforts of enterprises to go upstream and seek opportunities amid the pandemic.

For example, Vina T&T Group Company, Chanh Thu Fruit Import and Export Co., Ltd, specializing in exporting fruit to the US and the EU,said that revenue increased 30%-40% compared to the same period last year.

According to Rang Dong Agricultural Import and Export Company, currently exporting dragon fruit to the Chinese market is quite favorable as the growth rate is about 30% higher than the previous year. This is an impressive number in the context of complicated developments that upset the global supply chain.

Mr. Nguyen Dinh Tung, Chairman and General Director of Vina T&T Import Export Trading Services Co., Ltd shared his company's experience of overcoming the "storm".

"When the Covid-19 pandemicbroke out with the first wave inChina, our export markets were largely untouched. The pandemichas spread around the world, so leaders of Vina T&T leaders quickly took measures to respond. In addition to the enterprise's efforts is the companionship and support of the Government when it has made great efforts in handling problems to bring American experts to Vietnam, helping enterprises to export fruits to the US.”

Mr. Mai Huu Tin, Chairman of Truong Thanh Wood Group, said that as a subsidiary of Truong Thanh Wood Group,Thien Thanh Sanitaryware One Member Co., Ltd. tried to overcome the impact of the Covid-19 pandemic and maintain production, Thien Thanh Porcelain factory has had enough export orders for the next few years.

Thien Thanh Sanitaryware has made many investments to upgrade technology to produce new generation products with standards and technical quality which is comparable to those of well-known brands around the world.

These changes aim to put Thien Thanh Sanitaryware into a new game at higher rankings, completely free of the role in the lower bracket that Thien Thanh has been dependent on for nearly 20 years.

In particular, Thien Thanh is one of the first ceramic companies in Vietnam to directly export their products to the US market through the combination with other furniture products of Truong Thanh Wood Group. From the beginning of 2020, Thien Thanh ceramic pots have been present in major supermarkets in the United States.