Practising thrift the best way for businesses

Cutting their workforces, cancelling vacations, asking staffs to turn off computers and air-conditioners before leaving offices are the things businesses are doing in an attempt to reduce costs in the age of the price storm.

With five contracts only in the last three months, worth less than VND1bil, a decrease of 50% over the same period of last year, Bui Minh Nguyet, the director of a communication and event organisation company, is worried about the future of the company.

Meanwhile, the company lost out in two big tenders, all of which is making it difficult for the enterprise to maintain its workforce. As a matter of course, Nguyet plans to reduce the number of employees. The company has 20 staffs, a half of which are expected to be let go. As the other 10 staffs will have to work harder, Nguyet has decided to raise their salaries by 10-15%.

Moreover, Nguyet has decided to relocate her office to a less-advantageous position with the ‘softer’ leasing fee of VND6mil a month, 50% less than the fee required by its current position.

Nguyet is also thinking of minimising expenses by cancelling the vacations of the company’s staffs. Drinks for visitors are now made at the company, while she previously ordered from cafés. Birthday parties of staffs are now celebrated right in the company, while they previously always had big parties at restaurants.

“By practising thrift, we were able to save VND20mil last month,” Nguyet said.

The general director of a big telecom company in Hanoi has called on his staffs to economise water, electricity, office expenses and construction materials.

At the reception desk, ball-point pens attachable to desk have replaced loose pens in order to save pens. Officers leave offices at 6.30 at the latest, which allows the company to save on computer, electricity and air-conditioning expenses. Previously, the company’s staffs always left offices late in the afternoon because they stayed to chat with friends or play games. The company’s management board has decided to stop the vacation programmes for managers. Parties and travel are listed as things that are not encouraged.

Director of Vinaxuki, a truck manufacturer, Bui Ngoc Huyen said that his company has been making no profit for the last two months. Car sales have not been satisfactory, while input material prices have been pushed up, but the company dares not raise sale prices.

Huyen said Vinaxuki has asked its staffs to economise electricity and water, and applied a policy which allows its staffs to buy vehicles at prices 20% lower than the sale prices.

Other automobile manufacturers, who do not anticipate the speedy return of the automobile market, have no other choice than cutting expenses. They have been trying to cut expenses for PR campaigns and production-launching ceremonies. Ford Vietnam has announced it has been able to save $200,000 by applying ‘urgent measures’ in the last three months.

Bao Long Company in Hanoi asks its staffs not to turn on air-conditioners in the morning or days with cool weather. It has decided to put two upper storeys of the 7-storey building at No 54 Chua Lang Street up for hire to get money.

Meanwhile, Thai Tuan Garment Company announced it cut expenses for advertisements and other expenses several months ago. All business trips by the director and staffs are thoughtfully arranged, so that many things can be accomplished on single trips. (VNE)