For many months now, a number of mechanical enterprises in Thai Nguyen province have had to operate at a low level due to a lack of orders. Prolonged market difficulties with no signs of improvement have forced many enterprises to cut labor or accept losses to maintain production and business.
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| Faced with competitive market pressure, Tan Khanh Steel Structure and Construction Joint Stock Company (Pho Yen City) had to cut half of its workforce to reduce production and business costs. |
At Tan Lap Elevator - Mechanical Company Limited (Thai Nguyen City), which specializes in manufacturing elevator spare parts, while in previous years, production activities were very busy in the middle of the year, they are now quite gloomy, with a lot of inventory. Director Bui Xuan Dung said: Since the beginning of the year, the unit has been almost unable to sign new orders, production and business plans have been greatly affected. Revenue in the past 7 months has decreased by 40% compared to the same period last year.
Learning more at some other mechanical enterprises such as Tan Khanh Steel Structure and Construction Joint Stock Company, Viet Cuong Steel Trading Joint Stock Company, both in Pho Yen City, we also found similar difficulties. Tan Khanh Steel Structure and Construction Joint Stock Company (specializing in designing, manufacturing, assembling steel structures, pre-engineered steel frames, metal roofing sheets; designing, supplying tanks, silos and lifting equipment for industrial projects), in the past 7 months, orders decreased by 70% compared to the same period last year.
At Viet Cuong Steel Trading Joint Stock Company, Mr. Le Manh Cuong, Director, shared: We are operating in two main areas: pre-engineered steel structure construction and distribution of shaped steel of Dai Viet Steel and Tisco. By the end of the second quarter of 2024, steel output consumed in both of these areas decreased by 15-20% compared to the same period last year.
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| Production activities at Tan Lap Elevator - Mechanical Company Limited (Thai Nguyen City). |
According to the explanation of representatives of mechanical enterprises, the main reason for the “hunger” for orders is the general difficulties of the domestic and world economy . Investment activities in building new factories and expanding production workshops of enterprises in and outside the province have slowed down. In addition, the real estate market has not recovered, causing mechanical enterprises to struggle.
Many businesses have had to maintain production at a moderate level, accepting profit cuts to increase competitiveness. Some businesses, due to too much competitive pressure, have been forced to cut workers. For example, at Tan Khanh Steel Structure and Construction Joint Stock Company, since the beginning of the year, more than half of the number of workers has been cut compared to the same period last year (equivalent to more than 10 people).
In some other units, in order to maintain stable employment for workers, they accept to compensate for losses. For example, Tan Lap Elevator - Mechanical Company Limited, although the products produced cannot be sold, the company still allows 70 workers to work normally and accepts to compensate for losses to pay salaries to retain workers while waiting for the market to improve...
Although many solutions have been implemented, according to representatives of mechanical enterprises, these are only temporary measures, because enterprises always depend on the recovery of the market. Mechanical units and enterprises recommend that authorities at all levels and functional sectors have more solutions to stimulate the construction and real estate market; speed up the disbursement of public investment capital for construction projects... Along with that, authorities continue to accompany and remove difficulties for enterprises through policies of tax reduction, tax payment extension, social insurance as well...
Source: https://baothainguyen.vn/kinh-te/cong-nghiep/202408/doi-don-hang-doanh-nghiep-co-khi-gap-kho-1441274/
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