Firms weather the storm through demand stimulation

Based in Hanoi’s Bac Tu Liem district, Hoang Manh Tan, director of Son Ha Development of Renewable Energy JSC (SHE), shared that sliding demand has cast a shadow on the company’s sales picture.

SHE’s key products, including innovative electric motorbikes with competitive price tags, are facing fierce competition in the marketplace.

To boost sales, SHE has teamed up with the Haiphong Department of Transport to expedite a pilot scheme to collect combustion engined two-wheel vehicles, and then sell EVGO electric vehicles at favourable prices to state employees across the city.

This will contribute to realising the government’s commitment to green transportation, while also driving local consumption.

Tan revealed that the programme has garnered positive feedback, helping to increase SHE's product coverage in Haiphong.

Ho Chi Minh City also has plans for a similar scheme to assist state employees with shifting to electric motorbikes. SHE has registered to take part in this initiative.

To boost its sales, Intech Group – based in Hanoi’s Hoang Mai district – has attended a range of exhibitions to increase its product exposure.

From August 9 to 11, the company had a booth at the 14^th Vietnam Manufacturing Expo and the 10^th Vietnam-Japan Supporting Industry Exhibition in Hanoi to present their core products.

These include precise mechanical items, conveyor belt rollers, and several lineups of packaging machines.

Hoang Huu Thang, the company’s chairman said, “Through the exhibitions, we brought our latest products to customers, creating momentum for the company’s growth acceleration in the future.”

Like SHE and Intech Group, many other firms are taking rigorous steps to boost sales and expand their markets.

Big retailers, including MobileWorld (MWG), Digiworld, and FPT Retail, are constantly introducing lucrative discounts to lure customers.

As August marks the new school year, their laptop and tablet products come with astonishing offers to fuel sales.

For instance, MWG are selling laptops with 30 per cent price discounts and interest-free instalments, with smartwatches also featuring a half-price sale.

While campaigns with reduced prices help retailers to grow their market share, they also diminish profit margins.

BaoViet Securities JSC has forecast that the difficulties in the retail sector will linger to the end of this year. However, from 2024, MWG is expected to eye 132 per cent on-year profit growth, and FPT is anticipated to see positive signs from its Long Chau drugstore chain.

In the textile and apparel sector, Garment 10 Corporation (Garco 10) – a member of the state-owned conglomerate Vietnam National Textile and Garment Group – unveiled that the company continues to accelerate its exports and is expanding in the domestic market.

In the current situation, Garco 10 is set to achieve 90 per cent of the full-year projection that was approved at the general shareholders meeting in April.

However, over the first half of this year, Thanh Cong Textile Garment Investment Trading JSC (TCM) experienced a 56 per cent drop in its post-tax profits, falling to $2.37 million.

TCM cited that the company is focusing on expanding the local consumption of fabric and yarn products and increasing exports, helping to maintain production and mitigate risk.

Wood sector fallen on hard times Businesses in the wood and timber sector have their backs against the wall in the face of declining exports, falling orders, and rising interest rates.

Tough times for livestock firms Since late last year, the agricultural sector, and livestock in particular, has been facing multiple hardships amid spiralling costs and lower returns, with several livestock businesses incurring losses.

Tough times for building materials sector The construction materials industry has seen revenue drop by $1 billion over the last two years and is valued at approximately $2 billion annually at present, far below its pre-pandemic figures. This observation came from Dinh Quang Huy, chairman of Vietnam Building Ceramics Association at a seminar held on June 10 in Hanoi seeking measures to help building materials firms out of their current difficulties.

Stimulation essential to boost demand, yet credit vigilance required Pham The Anh, a senior expert from the National Economics University, scrutinises the government's measures to stimulate economic growth, while discussing the threats to development in the face of low demand.