Wednesday, September 8, 2010

Plan to succeed

Mr Howang Yu Nam, General Director of the Daewon-Thu Duc Housing Development Company - the name behind the Cantavil brand - shares his views on Vietnam’s real estate market.
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The global economic crisis has seriously affected not only the development of almost all enterprises around the world but also forced many out of the market, especially companies with long production processes and weak finances.
The global economic crisis has seriously affected not only the development of almost all enterprises around the world but also forced many out of the market, especially companies with long production processes and weak finances. Real estate is also affected, because projects are constructed over a long period of time and investors usually receive money from partial payments by customers in addition to bank loans to fund their projects.

During an economic crisis sales can be very slow and customers may struggle with their payments, and this problem obviously creates difficulties for real estate enterprises. In the same business field as the Daewon Group in Vietnam, other large South Korean construction companies dropped off their investment in the country because they could not arrange bank loans to continue. Other investors suspended their projects for long periods and preferred to sell them to someone interested in the project, and most foreign companies in Vietnam reduced their foreign employees because of high management costs.

The economic crisis is a real threat to the sustainability and development of investors but also brings them opportunities to prove themselves. It also allows people in the same market to see who the market leader is. In particular, advertising fees are cheaper but the benefits from advertising are greater. With a small amount spent on advertising during a normal economic period, you would not be able to promote your company’s image to a high level, but if you continue with such advertising your image becomes ingrained in customers’ minds. Belief in a brand name will bring the company more loyal customers.

Clear strategy

One of the important factors helping enterprises to overcome any difficulties is a clear company strategy that’s adaptable and pilots the enterprise. Forecasting potential markets is also very important. Along with market research a serious business attitude also contributes remarkably to the success of an enterprise in any business period with high competition, like the period of economic crisis.

Human resources always play a key role in the success of an enterprise. With stable and strong human resources, a company can approach their goals and be successful at an intangible level, so how to have strong human resources and how to maintain them are always a major questions for talented enterprise leaders.

Movement of key personnel from one enterprise to another is mostly due to employment conditions rather the work itself. In order to exist, people nowadays have many different skills to adapt promptly to changes in the job environment and any new circumstances. These skills also supplement each other with regard to work demands.

A long term investment plan also helps large enterprises have self control when problems occur from time to time or in the short term, because losses from these events are still in the plan of enterprises.

Foreign companies in Vietnam have long term plans but legal restrictions and procedures still make it difficult for investors to develop planned projects because not everything is defined clearly by law. In particular, real estate projects have to go through many different departments and it takes a long time to complete their procedures.

Thanks to its long term development plan in Vietnam and its clear mission and vision, the Daewon Company has step by step overcome the difficulties of the global economic crisis although we still face certain difficulties. The Daewon Group has emerged as one of the leading companies in the real estate market, with the Cantavil brand name, earning the belief of customers.

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