Wednesday, September 26 2018


Many firms thrive on turbulence

Update: February, 03/2012 - 10:24

HA NOI — Despite the volatility of the stock market, many listed companies have managed to take advantage of the market turbulence to strengthen their own business.

Key strategies that have helped these companies succeed during a time of economic crisis include a focus on their core business, diversifying forms of fund raising and the determination to maintain their labour forces.

While the real estate sector was heavily hit by the crisis, FLC Group (FLC) last year was still able to raise their capital from VND100 billion (US$4.7 million) to VND170 billion ($8.1 million).

The company estimated its revenue and net profit last year to have reached VND120 billion ($5.7 million) and VND12 billion ($571,400) respectively, up 185 per cent over 2010.

FLC would also expand its business operations and plans to have a total of 13 branches across the country in the year to come.

"Although the econ-omy still faces challenges, our company will continue to ensure working conditions for nearly 200 employees," said the company's general director Doan Van Phuong. Employees were the greatest resource to ensure the development of the group, he added.

Meanwhile, steelmaker Son Ha International Corp (SHI) last year saw a decline in exports. Son Ha's deputy director Dang Minh Quang said the firm's business results reached only about 30 per cent of last year's target. However, the labour force had been retained, and wages even rose by 10 per cent.

Many listed companies are focusing on their core business, having learned lessons from State-owned firms that suffered huge losses after diversifying their business into sectors outside their core product or service.

Software giant FPT's (FPT) chairman Truong Gia Binh said: "We will concentrate on innovation in information technology and bring our training model to other countries."

Nguyen Bang Tam, Chairman of Binh Thanh Import-Export Co (GIL) said listed firms would continue to invest in their core business this year. Staying loyal to the garment industry, GIL last year expanded sales to markets in southern Vung Tau and central provinces. The company's revenue last year increased by 1.5 times compared to 2010, fetching over VND700 billion ($33.3 million), and profit reached over VND50 billion ($2.4 million).

"Many businesses are now no longer dependent on bank loans. Companies are increasingly issuing a small amount of shares to major shareholders and employees instead," Tam said.

FLC and Son Ha would also raise money from bonds and foreign partners.

"I think this year will still be tough, but those who were able to survive last year will go forward this year," Tam said. — VNS

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