Business Business

08/09/2020 - 08:03

When businesses band together

"If you want to walk fast, walk alone. If you want to walk far, walk together.” This is the saying currently used by Huế’s business community with the goal of overcoming hardships, especially during a complicated period of COVID-19 pandemic.

Commercially linking among startups in the Start-Up Club.

Go forward together

During the COVID-19 pandemic, the state of the businesses, especially those operating in the tourism service and import-export trade have been critically affected. Revenue from traveling activities and accommodations in the last seven months has garnered 560 billion VND, decreasing by 49%. Export and import activities only brought in 443,927 million USD, a reduction of 21% compared to the previous year.

Recently, the number of newly-founded businesses in the area has been rising immensely with 423 firms and their subsidiary units accounting for a total registered capital of 5.264,7 billion VND, which is a 4.4% increase in quantity and 14% increase in capital compared to the same period of last year. However, the number of businesses reopening decreased by 12.5%. Meanwhile, 305 firms (increasing by 36%) are put on hold, and 53 other liquidated (increasing by 13%).

While many businesses with economic potential and experience are on the verge of bankruptcy, many startups face even tougher challenges due to the lack of risk management experience, resources, branding, etc.

Therefore, linking the resources among businesses to develop products, expand the outlets for saling and displaying products in local areas, and build a team of investment advisors are essential to keep startups alive through the ongoing difficulties.  

Efforts to connect resources and markets by the Start-Up Club has shown to be rather significant. Mobilizing resources has helped businesses take a considerable leap while expanding their market and distribution channels have also provided startups with potential partners, which will, in turn, reduce financial risks.

Chairman of Huế’s Start-Up Club, Nguyễn Văn Thanh Bình, has stated that efforts to link, to promote commerce, to support, and to cooperate for businesses’ development are properly implemented with many programs such as the “Startup Expo” (a program that attracted 50 firms along with 500 visitors’ attendances doing business).

The club has also hosted economic-themed conferences and courses, such as “Understanding the Business Environment to overcome Corona” and “Sharing Opportunities, and Surmounting Difficulties with Businesses”. It has also connected start-ups together and played the role of a bridge for the businesses to corporate, utilize a shared resource, and consume each other’s products.  

In the first six months of 2020, the club has supported more than 20 projects, in which 10 are innovative projects, among which, 4 projects have received more than 1 billion VND, and organized the contract signing to create breeding grounds among private entrepreneurs in the Central - Central Highlands for further cooperation.

Connecting businesses and expanding the market

Purchasing each other’s products

Along with other sharing and connecting activities, the business community aims to promote purchasing products from members within their respective associations and clubs to overcome the current predicament.

According to Mr. Dương Tuấn Anh, Chairman of the provincial Business Association, during the pandemic boom, the association encouraged the member enterprises to give priority to purchasing products and services of one another, especially those that might be out of demand during the COVID-19. Furthermore, the association has actively rescued and consumed businesses’ poultry and agricultural produce, freeing up the market and maintaining the ability to repopulate farm animals. 

The club has also provided counseling and become a liaison between members and the local authorities, banks, and investment funds to help their fellow members remove their difficulties . Recently, in dealing with difficulties regarding recruitments for the Accounting department, Hồng Đức Training and Counselling Center (AKA Hồng Đức Center) has reached an agreement with the CEO club to train and provide top-quality accountants for Hue CEO.  

Accordingly, Hồng Đức Center and Huế CEO is going to organize the training of qualified accountant teams, having them learned courses that will give first-hand experience in the industry before being recruited to be a part in one of the 35 member enterprises of Hue CEO.  

Mr. Trần Minh Đức (M.A.), Director of Hồng Đức Center, shared that this cooperation will not only raise the standard of training and provide more career opportunities for participants, but businesses will have the chance to recruit suitable qualified candidates for themselves.

Intensifying collaboration and advocating internal commerce between clubs and associations … have been seen as effective solutions to help businesses overcome this turbulent period in the pandemic.

Mr. Dương Tuấn Anh believes that uniting and networking will help businesses turn the tide. It’s the unity and sharing the difficulties of the enterprises that be the motivation for developing the local economy.

Story and photos: Doan Quan