Difficulties forge character.

Việt Nam•13/10/2023

Never before have businesses and entrepreneurs in Thai Binh faced so many difficulties as they have since the beginning of the year, yet they have quickly adapted and found their own path to survival, development, and positive contribution to economic growth. When meeting to congratulate entrepreneurs on the occasion of Vietnamese Entrepreneurs' Day on October 13th, Comrade Nguyen Khac Than, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee, emphasized: "The greater the difficulties, the more they highlight the will and aspiration for advancement of Thai Binh entrepreneurs."

Long Hau Ceramic Joint Stock Company has invested heavily in automated machinery and advanced production technology.

Fire tests gold...

Three-quarters of 2023 has passed, and during that time, businesses in the province have struggled, with many weaker businesses falling into decline. 491 businesses have had to temporarily suspend production and operations, and 96 have voluntarily dissolved. These figures clearly show the extent of the difficulties and pressure faced by the business community.

For textile and garment businesses, production orders have decreased by 25-40% compared to the same period in 2022, severely impacting the maintenance of jobs and incomes for workers. Not only are businesses facing competition domestically, but they also have to contend with numerous foreign competitors offering cheaper orders and green technologies. Meanwhile, businesses in the yarn, footwear, machinery, handicraft, and construction materials sectors are struggling due to rising input costs while selling prices remain almost unchanged.

Mr. Ngo Quang Van, Director of Thien Van Mechanical Joint Stock Company (Thai Thuy), said: "The prices of raw materials and energy such as electricity, coal, gas, and gasoline have all increased by 3-12%, and logistics service fees have also escalated, causing the cost of production to increase by 15-20%. However, due to the decrease in overall demand, businesses still have to maintain stable product prices in the hope of stimulating consumer demand and avoiding large inventories."

Domestic market absorption has decreased, and the export market is experiencing a similar decline. Major export markets for businesses in the province, from Europe to America, the Middle East, and Northeast Asia, have all shrunk. Businesses are only receiving small, low-value export orders. Furthermore, trading partners are becoming increasingly stringent with high-quality standards and demands for green, environmentally friendly technologies. This forces export businesses to adapt and develop new production solutions to survive, resulting in significant costs for upgrading machinery and technology.

The spirit of an entrepreneur

Faced with numerous difficulties, entrepreneurs do not lose heart, avoid challenges, or wait for better times. Instead, they confront them directly, proactively research, innovate, and seek opportunities to rise. This is precisely the strong will, unwavering resilience, and aspiration for development of the people and entrepreneurs of Thai Binh .

Mr. Bui Van Son, Chairman of the Board of Directors of Long Hau Ceramic Joint Stock Company (Tien Hai Industrial Park), shared: "The difficulties made us realize the limitations of our management and production model and also see the rapid transformation of businesses in other countries around the world during the 4.0 industrial revolution. Long Hau had to proactively reorganize its workforce, manage capital more tightly, and focus on targeted investments, mainly innovating production technology, increasing the rate of automation, and improving the skills of its workers. As a result, the company has improved productivity and product quality, reduced production costs, ensured reasonable and stable prices, and created competitiveness for its products. Long Hau has a solid foothold in the domestic market and has expanded its exports to Italy, Brazil, South Korea, and Myanmar."

Long Hau is not alone; many businesses in the province have chosen to innovate technology and machinery to create momentum for development. Along with that, many businesses have also quickly implemented comprehensive digital transformation from management and operations to production, business, and connecting production with the market. Notable examples include Tan De Sports Goods Manufacturing Joint Stock Company, Hung Thinh Phat Co., Ltd., Huong Sen Comfor Textile Co., Ltd., and AP Phu Hung Trading Co., Ltd.

Hung Thinh Phat Co., Ltd. has built a 5D online car showroom to enhance customer experience and convenience in shopping.

Mr. Vu Manh Hoan, General Director of Hung Thinh Phat Co., Ltd., said: To date, Hung Thinh Phat's car and motorcycle dealership system covers all districts and cities in Thai Binh province, serving consumers. However, to enhance the customer experience and convenience in researching and purchasing vehicles, Hung Thinh Phat has put all product information and images on the company's website and social media. In particular, the company has successfully built a 5D online car showroom, allowing customers to visit and shop anytime, anywhere without having to go to the dealership in person. Digital transformation helps businesses eliminate the distance and time to reach customers, effectively increasing sales.

Mr. Nguyen Thanh Tung, Deputy General Director of Huong Sen Comfor Textile Company Limited, shared: "Digital transformation helps us manage, operate, and monitor all business activities remotely and at any time. Building big data about the business also allows us to search for and select the best raw material suppliers and expand our export market. Currently, Huong Sen Comfor has stable export products to markets such as China, India, Bangladesh, Singapore, and several European countries."

Instead of simply focusing on producing good quality goods at reasonable prices and waiting for customers to come, as has been the case until now, businesses have proactively sought ways to introduce and sell their products; they understand market needs and then produce goods to meet those needs through trade promotion activities.

Two of the businesses that have been actively promoting domestic and international trade over the past two years are Bao Hung International Joint Stock Company and Thien Hoang Technical and Trading Joint Stock Company. In addition to participating in investment and trade promotion delegations in Nordic countries, Italy, France, Japan, South Korea, and Singapore, these businesses have proactively brought their products to international trade fairs and met directly with customers in many countries to negotiate exports.

Mr. Dao Duc Hung, General Director of Bao Hung International Joint Stock Company, said: "Accessing the target market and customers is how the company can boost product sales and build a suitable and effective production plan for the business."

Bao Hung International Joint Stock Company participated in the Seoul Food 2022 international food exhibition at the Kintex International Exhibition Center in Korea.

The creativity and determination of each entrepreneur are key factors enabling businesses to overcome difficulties and make positive contributions to the socio-economic development of the province.

Mr. Tran Van Quang, Permanent Vice Chairman of the Provincial Business Association, stated that in the first nine months of 2023, the total production value of the province was estimated at 141,336 billion VND, an increase of 7%, with the industrial production value increasing by 9.2% compared to the same period in 2022. Businesses contributed 2,710 billion VND to the provincial budget and 1,139 billion VND in import and export taxes. Along with other economic sectors, the business community has made significant contributions to this bright economic picture.

Khac Duan

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