FINANCIAL MANAGEMENT AND OPPORTUNITIES FOR THE DISTRIBUTION SYSTEM FROM COVID-19
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FINANCIAL MANAGEMENT AND OPPORTUNITIES FOR THE DISTRIBUTION SYSTEM FROM COVID-19


human resource management and resolution of legal problems during and after the pandemic

After social distancing, when production and business activities reboot, many businesses are facing new difficulties from capital access to how to adapt to meet the customers’ needs that have changed during and post pandemic.

In order to “propose” businesses financial management solutions and customer access by e-commerce distribution channels, Saigon Times Online, HCMC Young Entrepreneurs Association and COLORBOND® co-organized two online webinars called “Financial management during and post pandemic” and “Opportunities for the distribution system breakthrough from Covid-19” in the online webinar series “Supporting enterprises to overcome pandemic”.

transparency of information and finance to access capital

Mr. Nguyen Hoang Minh, Deputy Director of the State Bank of Ho Chi Minh City, shared information of banking mechanisms and policies to support businesses affected by the pandemic:

  • Issued Circular 01/2020 TT-NHNN directing the credit institutions, the foreign bank branches to restructure repayment periods, waive and reduce the interest and fees, maintain the debt classification.
  • Many enterprises, especially those in the service and travel that are unable to access capital from banks due to the lack of public disclosure of their cash flows and financial position.

Mr. Nguyen Hoang Minh – Deputy Director of the State Bank of HCMC –

In order to access capital, businesses must create conditions for the bank to obtain information and manage their cash flows. The lack of disclosure of their cash flows and financial position will make it difficult for banks to lend unsecured assets.

Mr. Hoang Minh Hoan – Deputy General Director of Saigon Commercial Bank (SCB)-

As a bank that directly “grants capital” to businesses, Mr. Hoang Minh Hoan, Deputy General Director of Saigon Commercial Bank (SCB), affirmed that the bank did not delay, causing difficulties for businesses, specifically at SCB:

  • For those credit customers whose business results have been affected by the pandemic, they will have their repayment periods restructured whereas the lending limit could be lowered.
  • For new-established businesses, their financial statements must be reliable and audited by an independent auditing firm.
  • Particularly for unsecured loans, SCB has available policies but businesses must operate efficiently and have transparent information.

According to Ms. Lam Thi Ngoc Hao – Deputy General Director of KPMG Vietnam, financial transparency is not difficult. In fact, the Ministry of Finance has put in place a comprehensive financial reporting system. It is important that businesses regard the accounting role as important, record sufficient and accurate information and pay tax adequately. By this, it will be easy for businesses to demonstrate financial history.

Ms. Lam Thi Minh Hao– Deputy General Director of KPMG Vietnam –

In addition, for financial transparency and operational efficiency, enterprises must first have a specific operational plan:

  • Early planning, forecast of scenarios and having preparatory situations, enterprises will take initiative to avert the severe crisis.
  • Amid uncertainty due to the pandemic, the number of scenarios must be beyond the normal one, so enterprises must have a business plan and weather the coming storm and its damage, anticipate the worst-case scenario then what will be missing when sales drop to only 30-50%, costs are divided to cut, reduce, or push afterwards and focus on short-term expenses, negotiate with suppliers to reduce and restructure debt and negotiate with banks.

The banking sector has no discretion not to lend to businesses. The room for credit growth is now still very large. The credit growth this year is 11.5%, equivalent to VND 300,000 billion, so there is no shortage of capital for the economy. It is worth noting whether businesses are eligible for bank loans or not.

Mr. Nguyen Hoang Minh- Deputy Director of State Bank, Ho Chi Minh City Branch –

Opportunities for the distributionsystem breakthrough from covid-19
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At the seminar “Opportunities for the distribution system from Covid-19”, three leading speakers:

  • Ms. Phan Bich Tam, Country Manager of Mobile Marketing Association – Vietnam, Myanmar, Cambodia
  • Mr. Le Tri Thong, General Director of Phu Nhuan Jewelry Joint Stock Company (PNJ) Ms. Vu Thi Nhat Linh, Deputy General Director of Tiki Trading
  • Shared their innovations in marketing during the pandemic, the transformation of the traditional distribution channel as well as how to maintain the distribution channel after the pandemic.

According to Ms. Phan Bich Tam, during the pandemic, consumers have changed their interaction and use of online tools. Ms. Tam forecasts that Vietnam has a great opportunity to develop business activities, online services and online consulting services.

Ms. Phan Bich Tam– Country Manager of Mobile Marketing Association – Vietnam, Myanmar, Cambodia-

Ms. Vu Thi Nhat Linh– Deputy General Manager of Tiki –

Ms. Vu Thi Nhat Linh, Deputy General Manager of Tiki further said that at the beginning of this year, Tiki recorded a 20% increase in the time customers staying on the page compared to before the pandemic. This currently keeps going on. Ms. Tam proposed accordingly:

  • Small enterprises see the digital economy as an opportunity to go faster and need to change according to consumer tastes.
  • For the product category in which customers have changed their behaviors, all enterprises should be present online in many aspects.

Having focused on traditional distribution channels, PNJ, however, has adopted the online approach since the Covid-19 outbreak.

According to Mr. Thong, as jewelry is not a necessity, the key is to change business tactics and how to do marketing:

  • If the marketing trend used to be to create a “blockbuster” product, creating a pervasive influence, then we now have to switch to “sniper”, aiming at the clearer targets. During the pandemic, jewelry purchasing power declined, but there were still customers in other segments.
  • Enterprises must read customers’ shopping behaviors. It used to be a common story, now we have to find our own story and tell it at the right time, use digital marketing to create greater efficiency and the sharper marketing message.

Mr. Le Tri Thong– General Director of Phu Nhuan Jewelry Joint Stock Company (PNJ)-

In order to maintain and make a breakthrough in the post-pandemic distribution channel, Ms. Phan Bich Tam, Country Manager of the Mobile Marketing Association proposed:

  • Enterprises should take advantage of available support tools, instead of creating new ones that are expensive, take available e-commerce platforms for example.
  • Marketing should invest in customer perception when going online shopping. At present, there is the concept called “Purchase through dialogue”, ie through chat, advice to offer products and services to customers. This is a more effective way to make more positive sales.

Wherever consumers are, businesses should closely follow to grasp opportunities. Combine offline and online to optimize. The new trend in the world is digital marketing, if not taking advantage of its efficiency, enterprises will lose opportunities and be left behind competitors. In the process of combining offline and online channels, it is important to manage customer data and understand customers to take advantage of customers.

Ms. Phan Bich Tam- Country Manager of Mobile Marketing Association –

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