Resilient firms see good chance to bounce back: Vietnam Report

July 25, 2022 - 18:06
Despite challenges due to the COVID-19 pandemic, it provided a good chance for businesses that managed to exist and make breakthrough growth, according to a report by Vietnam Report JSC.


A worker at Hòa Phát Dung Quất Steel and Iron Complex in southern province of Quảng Ngãi. Photo courtesy of Hòa Phát

HÀ NỘI — Although the 2020-22 period was a tough time for both State-owned and private enterprises due to macro-economic fluctuations caused by the COVID-19 pandemic, it provided an opportunity for enterprises with strong financial capacity and who are willing to change themselves to successfully adapt and overcome the period, according to a report by Vietnam Report JSC.

Such firms include Vinhomes JSC (VHM), Hòa Phát Group (HPG), Masan Group (MSN), Mobile World Investment Corporation (MWG), Việt Nam International Commercial Joint Stock Bank (VIB), Vietcombank (VCB), Đức Giang Chemical Group (DGC), Techcombank (TCB), MBBank (MBB) and Asia Commercial Joint Stock Bank (ACB), which were named among top 50 most prestigious and effective public companies of 2022 (VIX50) by Vietnam Report.

As the exchange rate, interest rates and inflation are on the rise, input costs have been pushed up, leading to an increase in the prices of products and services, harming business competitiveness.

However, firms that are self-reliant with input materials will secure benefits, according to the report.

General Director of Vietnam Report Vũ Đăng Vinh said that in order to maintain a stable business in the “price storm” period, enterprises must reposition their value chains, analyse macro factors that may affect their production costs, while developing a new price policy and regularly evaluating customer reactions to the new policy.

He reminded businesses to focus on enhancing their prestige by improving their products’ quality, design and market visibility, along with stepping up the application of scientific and technological advances, and boosting human resource development.

Vinh held that it is crucial to make capital markets more transparent, especially the corporate bond market, thus attracting professional investors and property investment funds, which would enhance the brand names of the businesses. — VNS