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Da Nang-based enterprises strive to overcome pandemic-staggered challenges

By DA NANG Today / DA NANG Today
February 04, 2022, 11:26 [GMT+7]

The COVID-19 outbreak has posed many challenges for manufacturing enterprises, thereby negatively affecting the city's economic growth. In that context, businesses operating in Da Nang have taken the initiative to deploy a handful of adaptive and effective measures to address the most immediate and pressing challenges caused by COVID-19, and drive their production recovery as well.

Infrastructure of Hoa Vang District-based Da Nang Information Technology Park. Photo: NGUYEN DANG KHIEM
Infrastructure of Hoa Vang District-based Da Nang Information Technology Park. Photo: NGUYEN DANG KHIEM

Mr. Nguyen Duc Tri, Chairman of the Board of Directors of the Hoa Tho Textile and Garment Joint Stock Corporation:

Applying profound digital transformation

2021 was really a very tough year for textile enterprises in general, and the Hoa Tho Textile and Garment Joint Stock Corporation in particular. The pandemic caused bottlenecks in the global value chain, and disrupted the supply of raw materials and accessories, resulting in the hike in the prices of production materials and many challenges for the exploitation of orders.

Besides, the customs clearance of import and export goods faced many obstacles, and the transportation costs significantly increased, all causing difficulties for businesses.

Not to mention the implementation of social distancing rules sometimes made our business reduce workforce, with only 30%, 50% and up to 70% of employees. When Da Nang returned to the new normal, we had to rearrange production lines to suit the increased number of employees, many workers had to change production stages, affecting productivity, work efficiency and income.

Despite the aforementioned difficulties, the company exceeded its production and business plan set for 2021 by 12%, representing an increase of 20% as compared to 2020.

In 2022, we target to increase the company's revenue by 7-10%, its export turnover by 10% or more, and the average annual income by 5-10% against 2021.

To achieve this goal, we will continue to seriously and effectively comply with pandemic prevention and control rules in tandem with developing regulations to ensure flexibility, safety and efficiency in a new normal.

Additionally, the focus will be on promoting digitization and application of information technology in all aspects of the company's operations to further improve efficiency in production and corporate governance.

Importance will be attached to renovating machinery and equipment, and accessing advanced technologies in a bid to meet production requirements and catch up with industry 4.0 trends.

Last, but not least, heed will be on building and perfecting corporate culture in an effort to build a solid corporate culture foundation, thereby making a difference and creating an impression to attract and retain partners, customers, and investors to the Hoa Tho Textile and Garment Joint Stock Corporation.

Mrs. Pham Thi Kieu Nga, Chairwoman of the Board of Directors cum General Director of the Tung Lam Asia JSC:

Exploring new markets

In response to the COVID-19 crisis, we have built our own production and business scenarios/plans. Moreover, the company has focused on training high quality human resources; improving the efficiency of management, production and business; diversifying supply sources to avoid production disruption; and boosting digital transformation.

In 2022, I hope that more short and long-term support policies for businesses will be issued, whilst administrative procedures will be simplified to facilitate local businesses to drive their post-pandemic recovery as well as ensure public health safety during these challenging times.

This year, the Tung Lam Asia JSC will give top priority to enhancing digital transformation from administration to production in order to shorten time, reduce costs, improve output, be flexible in the management process, and limit the passivity in terms of human resources.

In addition, one of the company's strategic-oriented activities is to focus on a niche market which is a segment of a larger market that can be defined by its own unique needs, preferences, or identity that makes it different from the market at large.

In addition to new products, the company will make every effort to enhance product quality, control manufacturing costs and promote other sustainable development aspects.

Mr. Lese Ioan-Liviu, General Manager of Universal Alloy Corporation (UAC) located at the Da Nang Hi-Tech Park:

Flexible adaptation to the pandemic

The pandemic has had a great impact on the company's operations in the past year, especially during the fourth wave of COVID-19 infections hitting the city from July to September 2021.

In an effort to ensure production stability and safety for employees, the company proactively took a number of measures such as deploying ‘3- on- the- spot' (on-site production, on-site dining, on-site rest) model, and the '1 route- 2 locations' approach.

All company employees are required to strictly comply with 5K recommendations of the Ministry of Health, and other the city's pandemic prevention and control rules.

Additionally, the company has actively coordinated with departments, agencies, and authorities to seek vaccine sources to inoculate workers.

In the coming time, we will continue to flexibly deploy measures to both maintain production and business activities and ensure pandemic prevention and control work.

Mr. Nguyen Van Phu, Director of the Daiwa Vietnam Co., Ltd., located in the Hoa Khanh Industrial Park, Lien Chieu District:

Factory expansion, 30% productivity increase

In light of the complicated developments of COVID-19, our company operated under the '3-on-the-spot' model with about 500 out of 3,700 employees involved. This kept the company operate without interruption of the production chain.

Despite the pandemic-staggered difficulties over the past time, we have received great companionship and active support from the city government, and the Authority of the Hi-Tech Park and industrial parks.

We hope that in the coming time, the city will issue more support policies for foreign workers. We plans to build a new factory on an area of ​​​​about 4 hectares, which is expected to be put into operation in April 2022, in a bid to expand production activities and increase production capacity by 30%. Once fully operational, the factory will create job opportunities for about 1,000 - 1,500 people.

Reporting by THU HA, QUYNH TRANG - Translating by M.DUNG

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