VCN- The Covid-19 pandemic occurred unexpectedly at the end of 2019 and early 2020, immediately devastating the world economy. Economies in many countries have faced negative growth. Although Vietnam has many positive results in pandemic control, positive GDP growth, its impacts on production and business are extremely heavy. In the mounting difficulties, the Vietnamese business community has strived to take advantage of the few opportunitieswith a spirit of “difficulty emerges the wisdom”, to overcome the negative impacts caused by Covid-19. Customs Newspaper introduces a series of articles about these efforts of some businesses atthis special time.
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Many textile enterprises choose to “attack” the domestic market to rise up. Photo: H. Diu
The Covid-19 pandemic created disruptions to global supply chains. However, the doors of many businesses werenot closed but the difficult situation has created a thrust, an opportunity and a more proactive way for businesses to penetrate deeper into the domestic market. “Warmth”, the fulcrum of the domestic market has helped businesses stabilisein the pandemic and create momentum for businesses to recover.
“Filling in the blank” of imported goods
In addition to grasping the changing trend of the large export market to adjust and adapt accordingly, enterprises return to focus on exploiting the domestic market well, producing products that “fill the gap” for previous products that were still imported, especially imported items from the Chinese market, this is how Hoang Phat Co., Ltd. (Huu Bang commune, Thach That, Hanoi) - a company specialisingin manufacturing wooden products, has developed declaration. According to Nguyen DuyKhiem, Deputy Director of the company, when encountering difficulties in orders due to the influence of Covid-19, the company has turned to research and manufacture items such as baby cots andchildren's dining chairs, products thatpreviously Vietnam usually imported from China.
“The disruption of supply chains, including the supply chains of imported wood products from abroad, especially from China to Vietnam for domestic consumption, has created a gap in these products in the domestic market. The company aims to change the type of product to produce these products to supply to the domestic market, creating jobs for workers,”Khiem said.
In the same way, Vu ThanhHai, Director of the supermarket channel, Sunhouse Group Joint Stock Company said that amid more difficult imported goods, the company is taking this opportunity to boost production and to dominate the market. Therefore, the company has tried to develop products, increase the localisationrate, bringing products of similar quality to imported goods but at reasonable prices for most Vietnamese consumers. In addition, the company also introduces new products to the business, such as gifts combined items with the hope to help regain the best business momentum after the pandemic.
Talking about taking advantage of the domestic market, Vu Ba Phu, Director of the Department of Trade Promotion (Ministry of Industry and Trade), said while the disease in many parts of the world is still complex, Vietnam has checked good control, this helps international partners appreciate Vietnam market, increasing attractiveness for the market. Domestic enterprises need to take advantage of this opportunity, maximisethe domestic market, create a firm foothold, build reputation in the domestic market andimprove competitiveness for businesses before international competitors.
Probably at home, waiting for a counter attack
This is a “turning point” of business with many firms, so a business cannot do it. A representative of May 10 Company said that to attack the domestic market, May 10 has connected with many enterprises in the intra-regional and intra-industry sectors to promote and take advantage of businesses andsupport business to develop. In the coming time, businesses will promote cooperation with large corporations such as electricity, mineral coal, aviation, and logistics to provide solutions and use each other's products and services to increase value and sales for businesses in the same industry.
In the same way, many businesses in areas expected to be heavily affected have turned up thanks to the domestic market, with very “bright” business results. TNG Investment and Trading Joint Stock Company recorded sales of VND 1,995 billion in the first sixmonths, down 7% compared to the same period, but this is still a positive result for a textile company. In June, TNG recorded total revenue of VND 548 billion, up 6% over the same period in 2019, only its domestic market reached VND 167 billion, up 55% fromthe same period.
To help stimulate demand and boost domestic consumption andhelp businesses gain more revenue from the domestic market, HaNoihas implemented solutions to restore and promote socio-economic development associated with the implementation of the campaign“Vietnamese people prefer Vietnamese products”. On this occasion, businesses together join hands to overcome difficulties, accompany and support each other for the development through the signing of product consumption into distribution channels, promoting regional links.
Not only functional agencies, but also many partners, distribution enterprises are involved. Accordingly, many distribution businesses are willing to provide free sale points andsupport more promotions for businesses. It is important, according to experts, that the supplier must commit to produce and offer market quality products strictly according to regulations, ensure the processes as well as have appropriate labels.
With nearly 100 million people, Vietnam is not a small market, even, doing business here, domestic enterprises have advantages compared to foreign firms. Therefore, taking advantage of a solid “home ground” is an opportunity for businesses to overcome difficulties and act as a “springboard” to reach out to the international market as soon as economies reopen.
By Thanh Diu/ HuuTuc