Accomplished CEO Explains Success, Overcoming Covid Hardships
|Phuong Uyen Tran, Tan Hiep Phat Deputy CEO (Photo: Kinh Te Va Du Bao)|
Each business has its own challenges
Before sharing how Tan Hiep Phat coped with the pandemic, Phuong Uyen Tran encouraged businesses to talk about their current operation. Bat Trang Pottery said that its distribution chain was broken, causing its revenue to decrease by 70%. The company is struggling to find a recovery plan. Viet Hai - a confectionery enterprise tried to maintain production and negotiate supply deals with industrial parks but was nothing concrete came from the proposal. Meanwhile, the leader of a silk business said her business had to stop because of Covid-19. She wanted to do online business but had no experience.
Each business has its own challenges, but all suffer from the prolonged pandemic while having no recovery plans. Businesses were waiting for a new way of thinking, hoping Uyen Phuong Tran could give her advice to save the business from the growing challenges of the business environment.
According to the General Statistics Office, in the first eight months of 2021, up to 85,000 Vietnamese businesses have to stop operating, waiting for dissolution, or going bankrupt, which is the highest figure as the business community is experiencing an unprecedented crisis. Some forecasts suggest that if Vietnam can control the pandemic soon, about 100,000 businesses will have to close down, waiting for dissolution or bankruptcy. If the pandemic is not soon controlled, the number could reach 150,000.
|Practicing discipline and communicating with employees, helping them to understand safety regulations are keys to maintaining the group's production. (Photo: Kinh Te Va Du Bao)|
“Awaken” SMEs entrepreneurs' bravery to overcome difficulties
Sharing her experience, Phuong Uyen Tran said: "Covid will not end soon, the virus will not disappear, there may even be unpredictable variations." Due to the pandemic, all aspects of life have been seeing complex problems. “For several months now, I have no Sunday. Because of work pressure, we have to continuously and creatively think of a solution to maintain production during the pandemic." For entrepreneurs, bravery and creativeness are indispensable spirits to lead businesses through difficulties, said Phuong.
Tan Hiep Phat, a large-scale manufacturing enterprise and with over 4,000 workers, faces great challenges due to the pandemic. However, Tran Qui Thanh, the group's founder, believed that Tan Hiep Phat must stand strong to help the people involved, to contribute to society. The group has determined to maintain production, supply chain, to create a positive impact on society by all means.
With the spirit of "nothing is impossible", Phuong said Tan Hiep Phat people together implemented the 5 principles that the company's Board of Directors built to "live with the pandemic". One of these 5 principles is “Allocate damage, accept sacrifices”. The pandemic reduces revenue, increases costs, and causes great damage to all participants in the supply chain.
“In such a context, no one can avoid damage, however, Tan Hiep Phat determines to sacrifice and suffer more damage to protect employees, sacrifice immediate benefits to protect the long-term existence of the supply chain, and protect all stakeholders", Tran Uyen Phuong said.
To implement the "three at place" production model, take care of more than 1,000 workers for a long time, and have to control the disease, Tan Hiep Phat's operating costs increased many times, while consumption is much slower. The most important key to implement Tan Hiep Phat's 5 principles of "living with the pandemic" is the strict discipline and exemplary spirit of the leaders. Practicing discipline and communicating with employees, helping them to understand safety regulations are keys to maintaining the group's production.
Tan Hiep Phat tries to ensure that employees have jobs and incomes, farmers can sell raw materials. The supply chain must be maintained so that customers have products, the state budget grows, reduce the financial burden. Altogether, those stabilities create strength to control the pandemic, while maintaining production and business, bringing values to the community.
|To implement the "three at place" production model, take care of more than 1,000 workers for a long time, and have to control the disease, Tan Hiep Phat's operating costs increased many times, while consumption is much slower. (Photo: Kinh Te Va Du Bao)|
Stay creative and confidently connect with Tan Hiep Phat
Not only answered many questions from SMEs, Phuong Uyen Tran also spoke of Tan Hiep Phat's open spirit, which meant the group welcomed small businesses to participate in its network.
Tan Hiep Phat's selection of suppliers is carried out according to a standard process, in which the first step is to evaluate the supplier's production capacity, product quality, and quantity. “At this step, we look for the quantify and quality of products that a supplier can supply. Along with that, the supplier's reputation, willingness to fulfill its commitment even in difficult situations will also be evaluated,” Phuong said. If a partner is selected, Tan Hiep Phat has regulations for all bidding to make the partnership transparent and fair to all sides.
Phuong Uyen Tran affirmed that Tan Hiep Phat was always ready to connect with new partners. “If any business can produce the materials and products that we need with better prices, more convenient packaging, then feel free to participate in the bid. As long as you offer improvement, you have the opportunity because we are always ready to accept new suppliers and go through the same process of evaluation and bidding,” said Uyen Phuong.
Opportunities exist in danger. From Tan Hiep Phat's development experience, Uyen Phuong Tran encourages SMEs to find their own strengths and make creative efforts to exploit those strengths, put them into value. "If we work hard every day, we will overcome difficulties", Uyen Phuong said.
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