Jan 18, 2012

Vietnam - Large enterprises gain billions of US dollar revenue regardless of crisis



Many enterprises have fallen into hardships due to crisis and inflation in 2011. However, some local large brands such as Vinamilk, FPT or Viettel still maintained growth rate and hit the revenue threshold of billions of US dollar.

Ending the fiscal year 2011, Vietnam Dairy Products Joint Stock Co (Vinamilk-VNM) reported gaining revenue of over $1 billion (equaling to 22.279 trillion dong), rising 37% from the previous year, marking the highest level since its establishment so far. Achieving the threshold of $1 billion revenue by one year ahead of schedule, Vinamilk has joined the group of 200 large companies in Asia-Pacific.

In addition, the company’s export turnover in 2011 reached over $140 million, rising 72% on year. VNM’s products have been exporting to 15 countries in the world, including major stable markets of the US, Australia, Canada, Russia, Turkey, Iraq, Philippines, Korea and Cambodia. Not long ago, the company signed a contract to provided dairy products for Thailand with total contract value of nearly $10 million for shipment in the first quarter of 2012.

As assessed by these companies, crisis is also an opportunity if you know how to take full this advantage. Thus, in the context of unfavourable economic conditions, many businesses have clustered psychology to ensure the safety, some others are still eager to find new markets, even in places where are considered difficult. This strategy has contributed to helping businesses survive healthily and thrive strongly despite the unfavourable economy.

Mai Kieu Lien, Vinamilk’s CEO said that instead of confrontation, Vinamilk has been active in joint ventures with foreign partners to take full advantages of their strengths for the development such as the distribution system worldwide and global marketing strategy of large groups.

In early 2011, most forecasts had showed the economy in 2011 would be more difficult than the recession in 2009. Even, experts had predicted a stagnant prospect when a series of companies had to face the possibility of merger or going bankrupt.

Recently-released list of Top 500 Vietnamese largest enterprises in 2011 showed the number of companies gaining revenue of billions of US dollar in 2011 decreased by 30% from 2010. The list also noted about 50 state-owned enterprises and private firms in the group of billions of US dollar revenue. These firms mainly operate in sectors of oil and gas, electricity, telecommunication and banking operations. These fields had to bear significant impacts from crisis and inflation and in comparison with 2010, the number of companies in this group also decreased by 20%.

FPT Joint Stock Co (FPT)’s general director, Truong Dinh Anh, said that the difficult economic situation did not create opportunities for business to expand business lines but it was the appropriate time for merger.

“We can acquire businesses that we never thought previously we can afford” Anh said.

Anh revealed FPT will spend three trillion dong on merger activities in 2012. At the same time, the company will still focus on telecommunication sector and software business in 2012.

VietBiz24



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