VietNamNet Bridge – Sharing the same business premises with others, relocating
the offices to the suburbs, laying off workers and cutting down all possible
expenses are the things most businessmen are doing to save every dong to survive
the current difficult period.
Managers receive VND3 million a month
The board of directors of the Au Viet Securities Company, one of the leading
securities companies in Vietnam with the chartered capital of over VND300
billion, has consulted with the shareholders about the dissolution after 7 years
of operation.
In 2012, the company earned only VND2.69 billion from the brokerage service, a
sharp fall of over 80 percent in comparison with the year before. As a result,
the company incurred the loss of VND10 billion in the year and the accumulative
loss of VND151 billion.
Therefore, each of the members of the board of directors now receives only VND3
million in monthly salary, which is equal to the monthly pay to a blue collar
worker in industrial zones.
Quang, an executive of a service company in Me Tri Ha area, said the company is
considering sharing the same office with others to cut down expenses.
“Only 3 of us have been present at the office regularly. Therefore, a 60 square
meter office is too large for us. We would re-lease 2-3 seats on the first floor
and one room in the second floor to ease our burden,” he said.
“If we only lease 3 seats for 3 workers, we would be able to save the sum of
money big enough to pay to one worker,” he continued, adding that just several
millions of dong would be a fortune for the company in the current difficult
period.
Borrowing money from staff by delaying monthly salaries is the method the
company located on Le Van Luong Road applied. The 2-year frozen real estate
market has made the company’s cash exhausted and put the company on the brink,
even though it has cut down 70 percent of staff.
Le Dinh Long, Director of Hacota Ltd in HCM City, said he has cut down the
budgets for stationary, electricity, water, fuel and reception. In 2012, the
company did not have summer vacation because of the company’s difficulties.
Every worker there has to undertake some additional jobs, which allows them to
get higher income, while Long does not have to maintain a too big labor force.
Practicing thrift or dying
Bui Quoc Loi, Director of Minh Giao Trade and Technique Service, said it
requires more exertion to find jobs nowadays. In the past, the company just had
to compete with 5-7 contractors to win the bids, while it now has 20-23 rivals.
In late 2012, Loi hoped that Minh Giao would have 5 contracts to implement, but
to date, only 2 have come.
Meanwhile, Deputy General Director of Dat Xanh Tay Nam Real Estate Company —
Dang Chinh Thang, complained businesses now try to “play dirty tricks” to
eradicate each other.
In 2012, a client planned to buy a project of Dat Xanh. However, one day, the
client read on a local newspaper that the same project was offered by another
company at a lower price. The client decided to break with Dat Xanh and contact
the other seller. However, the client was then told that the products were sold
out.
Manh Ha