Businesses seek ways to adapt to market fluctuations

​(News Portal – Dong Nai) – Despite many challenges in 2023, there are still many opportunities ahead from the State, especially solutions on taxes and fees... which are expected to be a driving force for businesses to regain growth. 

Packing products for export at Phuoc Hung Mechanical Production Trading Company Limited 

The growth rate of businesses has come to a halt

Calculating the prospects for business development in the current period is very difficult. The data for the country as well as Dong Nai in the past 11 months of 2023 are worth paying attention to. Specifically, in the first 11 months of 2023, the country had 201.5 thousand newly registered enterprises and returned to operation, an increase of 3.5% over the same period last year.  

By mid-November in Dong Nai, the province had about 3.6 thousand newly established enterprises with a total capital of about 26.2 trillion VND and more than 1 thousand enterprises registered to increase additional capital by about 32.4 trillion VND. Compared to the same period, this is equal to 94.5% in the number of newly established enterprises and 89.6% in the amount of newly established capital. In addition, there are 1.8 thousand branches, business locations and representative offices registered to operate in the province, equal to 87.7% compared to the same period in 2022.

According to Mr. Nguyen Van Than, Chairman of the Vietnam Association of Small and Medium Enterprises, in the past period and now, many difficulties are besetting businesses, especially small and medium-sized enterprises due to domestic consumption and export orders decreased sharply. In addition to consumption issues, up to 25% of the association's members said that they were currently having difficulty accessing credit loans due to strict lending criteria. Besides, most businesses have been holding out for a very long time, so the conditions to meet regulatory requirements are difficult to fulfill.

Managing the immediate future while finding a long-term solution

Adverse impacts have created many challenges that force businesses to manage and change accordingly to operate in the immediate future while try to find a long-term solution. Director of Hiep Luc Cooperative (Bien Hoa city) shared that the unit's revenue of handicraft wicker products has decreased since the Covid-19 epidemic and conflicts in the world occurred. Some customers of Hiep Luc Cooperative due to economic difficulties leading to bankruptcy, affecting the cooperative's orders. Currently, production and export are recovering but slowly. The cooperative has stepped up its search for new export markets, including Japan. At the same time, to create trust for customers, ensuring labor safety and taking care of each stage of production is a prerequisite that can bring in new contracts.

Similarly, as an enterprise producing mechanical products, Ms. Pham Thi My Chau, Deputy Director of Phuoc Hung Mechanical Production Trading Company Limited (Bien Hoa city) said that in the immediate period the enterprise was focusing more into the domestic market. In the year-end season, electronic products, televisions, refrigerators, washing machines... are consumed more, which is also an opportunity for ancillary products such as refrigerator shelves, washing machines, TV stands of the enterprise to supply to the market.

Vietnam is in the top 5 largest wooden furniture exporting countries in the world. Currently, the wood industry is actively investing in improving quality and converting technology as well as proactively sourcing raw materials. For example, the fact that wood associations across the country have cooperated to establish affiliated enterprises and proposed to build a large center for design, production, and exhibition of the industry in Dong Nai recently is a typical example of a change for long-term sustainable development. ​