Businesses and the repositioning of business models challenge

​(News Portal – Dong Nai) - Economic challenges, declining market demand and many barriers prevent accessing capital sources are forcing businesses today to be more cautious in production and business activities. 

For businesses, restructuring in accordance with market trends is the main foucs. In the photo, a mechanical and manufacturing enterprise in Long Thanh District 

Modify business models to adapt to market changes

According to Mr. Dang Quoc Nghi, Vice Chairman of Dong Nai Young Entrepreneurs Association, Director of Nam Viet Dragon Company Limited (Bien Hoa City), in fluctuating economic conditions, many uncertainties and risks of recession, businesses often react and cope with many different solutions. Some businesses freeze recruitment to cut budgets. However, during this period, human resources are the decisive factor in survival. "As business leaders, we should prepare the necessary management skills to impart on our staff to together maintain our business position in this difficult period," Mr. Nghi commented.

Similarly, Mr. Mai Huu Tin, Chairman of the Board of Directors of Truong Thanh Furniture Corporation, in corporate governance, the important thing is to ensure that all employees and members are involved in the change process.

Also according to Mr. Mai Huu Tin, Vietnam's wood production sector is promising, but it is also facing challenges that require necessary changes. Currently, most of the woodworking profession is processing, while the creativity in the production stage is limited. Therefore, not only the wood industry but also other industries must change to match the general trend. However, continuous change is part of the plan. The plan is to have room to change in accordance with the new status quo, taking steps to achieve success. That is also one of the reasons why he and many large enterprises in Vietnam's wood industry are promoting investing in a large production center in Dong Nai. This will be a project that follows a creative direction and builds a common ecosystem, creating greater competitiveness in the international market for Vietnamese wood products.

Sharing in a recent discussion on October 27 with young Dong Nai businessmen, Dr. Diep Gia Hoang said that there was a rapid change in consumer trends, so businesses need to keep up with customer needs and tastes, as well as finding capital with smarter strategies. It is necessary to improve appropriate business models, optimize operations and change planning and management methods to suit social trends. This is also a successful lesson that large corporations in the country and around the world regularly employ.

The State in creating mechanisms for businesses to "innovate"

At the meeting recently held by Prime Minister Pham Minh Chinh with the business community in 2023, experts and businessmen proposed policies to promote development in the coming period. According to Chairman of the Vietnam Chamber of Commerce and Industry Pham Tan Cong, in addition to urgent issues such as tax reduction, fees, interest rate support, consumer markets..., in the medium and long term, businesses want that restructuring policies aiming at sustainable development also need to be planned.

Mr. Cong believes the State should pay more attention to the training and improving the quality of human resources; have a specific action program to improve the ability to take advantage of FTA tariff preferences, helping Vietnamese businesses promote their advantages over competitors in markets that have not yet signed FTAs. The Government promotes improving logistics infrastructure as well as administrative procedures to reduce transportation costs and increase the competitiveness of Vietnamese goods....

According to businesses, they will have to find ways to save their businesses first, but in the current world situation, clarity, transparency, predictability, and the ability to handle quickly according to the mechanisms and policies are extremely important to the business community. Uncertain forecasts about the world economy and disturbances occur more frequently and do not follow cycles or rules, so businesses not only need ministries, departments and localities to resolve inadequacies caused by regulations. unclear, overlapping, even contradictory, but these issues also need to be dealt with at a faster pace, with appropriate thinking to the new context.

“As a small manufacturer, to overcome difficulties, we want to participate in the market with support from policies. At the same time, it also allows our business to implement restructuring plans and rearrange business models to keep up with the speed of technology and the market," said a representative of a mechanical and manufacturing enterprise in Long Thanh district. ​

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