What We Have Done To Respond To The Economic Crisis Due To Covid19?

Construction industry & real estate at risk of crisis

Surely me and my friends working as mechanics built a painful blow caused by Covid-19. Everything happened so fast it was unbelievable. In just 2 months. Covid has swept through all sectors. In which, the field of construction mechanical services is one of the industries most affected.

Tell the story of Hoang Sa Viet alone. We are a construction industry and building materials company . In which, the construction industry accounts for 60% of the company's total revenue. Right after Tet, when "Covid19" hit, we determined that it took the first 3 months of the year to cover losses. But the company still survives on the project segment, selling equipment.

The complex developments do not stop there. Now the project segment continues to be affected. The orders for the projects have been imported and delivered to customers, but we feel the lack of money from the investor... They seem to be like us, the source of income is no longer, all are stop...

These are external influences. Inside the business, it must be even more complicated. Is it true that our businesses are used to the " do it wherever you go " style? I believe very few event equipment and light bar companies have a reserve fund. Everything seems to stop and just to "spend money". Import money, salary, cash, bank loan interest, payment to partners for installment purchases...

The most difficult thing for us now is how to maintain the movement until the end of the year. While the epidemic has lasted without end. The government has promised to provide loans to affected businesses. But now they withdraw their promise because the influence is now on the whole society. No one will get cheap loans. So where is the way out for us?

Which way out for construction and real estate businesses?

Back to reality, the epidemic is still progressing badly. Letting go and accepting is also sometimes a solution for construction industry businesses . Think a lot, ponder a lot. Fortunately, HSV and I have accumulated some assets, although we cannot use them immediately, if the epidemic lasts long and the economic crisis occurs. I'm going to sell some stuff to save the business.

Reposition yourself. I felt I had to act. I started working, doing more than usual and spending more time at work. If my 2020 plan is just " learn more foreign languages" now it's numbers again. I started learning new skills that I really shouldn't have. I started all over again like a fresh graduate. I started review the good and bad points of my business and correct it. I'm willing to sell what I have to share with you guys... I don't regret my property because it's just the ups and downs. deep in my body...

I began to see opportunities if I overcame obstacles. In the immediate future, I must immediately meet with the Leaders to share the difficulties. I will then notify employees of the pay cut plan. I also hope they understand and share with me. Only when the company cannot get a bank loan. I'm going to start selling something I can to share with people.

In the immediate future, I will calculate how to maintain until August. Encourage each person to reduce their own salary or go home temporarily to wait. We plan to split the money we have to last until the epidemic is over.

I mobilized all the personnel, the Leaders gathered with me to correct the mistakes we encountered in the past. The products and services that have not been good to customers in the past, we try to fix. We oblige all employees to study. In the immediate future, I will improve my business years, technical skills, sales... I realize that now is the time for my employees to do their best work. I know they are very good. They have a creative ability that will come into play even in difficult times like now. They and I have a great sympathy because they understand that being an owner like me turns out to be not easy at all.

I consider this period a form of investment . Instead of me investing in equipment, now we invest in people. And I expect a return on the investment in people. I have to review myself. I have to reposition myself, what do I do, what did I do wrong with whom? Give me a chance to fix it. I started focusing on products that were closest to my industry for easy switching. If the economy goes down, then we have to have something else to replace it.

Maybe Covid created a powerful tsunami column to topple the tall towers and push everything flatter. It is like a wave hitting the shore to create smooth sandy shores. It creates a more equal, dynamic business environment and creates opportunities for young people like us.

From a macro perspective. The global economy will decline, some large corporations and corporations now have to play in the same yard with small businesses. And the game will be fair... After the epidemic is over, our country welcomes new investors again. They will bring a lot of technology to invest in Vietnam. We will see a global economic shift. In which Vietnam is dominating. Because of the economic background, the political and social system here is very stable. Real estate values ​​are on the rise again. Businesses that are still standing through this covid season will again receive a new wind for the process of upward development.

Above I have shared with you all my thoughts and actions, I hope this sharing is useful to some of you. In the spirit of overcoming difficulties, we hope that we will be good friends with you in the sound, lighting and events industry . Our level of competition no matter what. We still look forward to working with you equally and respectfully at work.

By the way, I would like to share my own story, the story of growth & change. Dear friends, HSV company has formed and developed for 9 years. After 2020 we are restructuring and reshaping the business. For more comprehensive development. With the target of 1000 billion VND/year. Speaking of the number 1000, many people must be shocked. But I don't mean to play with numbers . For me, my goal is to challenge myself...

Love,

Hung Pham

Director of Hoang Sa Viet construction technology company