Fri. May 24th, 2024

VietNamNet Bridge – While tens of thousand of businesses went bankrupted, a lot
of others still can earn big money with small scaled business.

Vietnam, dynamic, young entrepreneurs, capital, small scale business

The benefits brought by crisis

AppeRice, a rice burger chain, which started up its business five months ago,
has had tens of shops on advantageous positions in HCM City. AppRice has
invested one million dollars on the production line, which is a big sum of money
for the investor who cannot get the finance support from banks.

However, the investor not only sees the financial difficulties, but great
advantages as well.

It is now easier than ever to lease retail premises: the rents are low, while
the supply is profuse, which allows AppeRice to easily access consumers, cut
down expenses and become more competitive.

In the economic crisis, people tend to look for stable sources of income instead
of big but risky ones. Since the required investment rate is small, just
VND50-100 million for an AppeRice shop, which fits the pockets of many people, a
lot of investors have been running AppeRice shops under franchising contracts.

Facing the high inflation, people have to fasten their belt, but they still need
to spend money on basic needs such as meals and drinks. Therefore, AppeRice
still can attract a lot of customers, especially with the competitive prices.

Niche markets can bring fat profits

The Nui Ba Cable Car Company in Tay Ninh province, carrying passengers and
cargoes with cable car, has a modest chartered capital of VND31.97 billion.
However, its profits have been always very big in the last many years, far
higher than the chartered capital, despite the economic recession.

In 2008-2010, the company’s profit grew by 15-16 percent per annum. In 2011, the
growth rate jumped to 50 percent with the profit reaching VND47.76 billion, or
50 percent higher than its chartered capital.

The company planned to obtain VND62.5 billion worth pretax profit in 2012.
However, it had got VND68 billion just by the end of September. The encouraging
business result has been explained by the fact that the company has been
concentrating on the core business field by providing services in the Ba
mountain area, while it did not borrow capital and throw money into many other
business fields which were out of its control.

The company’s shares have been traded at VND76,000 per share, the highest level
now seen in the market. The share price has increased by 86 percent just over
the last year from the deepest low of VND3,000 per share.

Earning fat profit by providing safe food

The Vietnamese husbandry met a very tough year in 2012, but some enterprises in
the field still could find the ways to develop.

Lam Thanh Duc, the owner of the Thanh Duc fowl farm in Dong Nai province,
believed that developing animal husbandry and making food was the wisest
investment for now, because food can be consumed everyday, no matter they have
much or little money. That explains why the demand for meat, dairy products and
eggs keeps increasing.

However, Duc understands that smart consumers nowadays only want clean and safe
products. And the thought then gave him a good idea to earn money – providing
clean and safe products.

In early 2012, Duc decided to spend VND8.5 billion dong to install two German
production lines which allow to raise animals in an automatic and clean process.
Though the husbandry scale has increased recently, Duc does not have to expand
the farm area. Meanwhile, he can save the production costs and earn more money
thanks to the higher productivity.

Tran Thuy

By vivian