Macro-economic fluctuation, as well as the world’s negative economic outlook since the beginning of the year, has caused many enterprises to face consecutive challenges and difficulty in expanding markets and developing capital. What they should do to overcome this is still a hard question at the moment.
More conditions
At present, the financial – investment market continuously witnesses unpredictable fluctuation. This caused many investors to meet many difficulties. Negative impacts can be seen most clearly in real estate enterprises. Just a short time ago, they spent a huge amount of money on houses and land. However, the change in Hanoi planning has significantly reduced land prices, thus depriving them of an investment channel and driving them into capital stagnancy.
In addition, domestic gold price is at record levels, reaching VND46 million per tael. Repeated increases in gold price in the short time have also affected the exchange rate between USD and VND. Expert analysis shows that if the exchange rate between USD and VND continues up in coming time, gold price will be impacted by double increase. That’s when enterprises and investors meet obstacles. As many projects, especially those invested by import and export enterprises, are calculated in USD, when USD price increases along with gold price, enterprises are stuck. All those challenges reduce the enterprises’ capital value.
Which solution?
Many Vietnamese economic experts have pointed out that in hard situation, Vietnam can still promote its unique strengths. If Vietnamese enterprises can deal with supply and demand, development strategy and capital, they can stand firm and develop. Specifically, with current conditions, beside normal stabilising measures such as reducing costs, improving productivity, or increasing selling price, enterprises should consider business “tricks” adopted by many others in the world like, without raising quality, they maintain the price but shrink product size.
On the other hand, despite such hard times, not all Vietnamese enterprises incur loss. Some are profitable as they have reasonable capital structure (low ratio of debt over capital) and maintain their markets and fast capital circulation. Therefore, in spite of economic difficulties, some economic sectors still see rapid growth and high potential. Statistics do show some consumption demand still rising, despite the unstable economy.
Besides, Vietnam tourism still has good growth, both domestic and international. Moreover, although public investment decreases, important transportation infrastructure projects which tourism enterprises depend on are still being implemented. Since Vietnam exports many agricultural products such as: rice, cashew nut, rubber, and aquatic products, enterprises in this industry have good conditions to expand their market and business network.
Anh Phuong
Vietnamese
