Corporate restructuring is very important for businesses at this time, especially when COVID-19 causes businesses to change their operating methods to quickly adapt to new business situations and to the high integration trend of the mechanical industry.

According to the Vietnam Association of Mechanical Enterprises, in order to easily access and analyze the limitations and inadequacies arising from the practice of Vietnamese domestic mechanical enterprises, we must first identify the basic corporate restructuring and reform processes and documents.

We, must determine the context, according to which the task is to analyze the socio-economic development strategy of the country as well as internationally; The issues of orientation and policy of economic development of the sector; The market as well as the market’s requirements for the products and services that the business is pursuing; The dangerous landscape of COVID-19 and the new normal after the pandemic.

Accordingly, assessing the current situation of the business, assessing the weaknesses and strengths, thereby finding the causes and advantages of the main problems such as: Industry, product and service market; Technical level of technology, production line; Human resources, organizational model; Governance system and legal compliance; Labor discipline, corporate culture, security, safety and change management; Financial status and transparency.

Along with that, it is necessary to develop a strategy, identify restructuring and reform goals, consolidate the strategic vision, define a roadmap for each reform goal, and prioritize an advanced management model includes high discipline, prominence in corporate culture, in line with international practices. At the same time, building a business restructuring and reform project, especially in the context of the domestic and international economy and the resources that each business owns, will be very basic issues for people to consider. Enterprise management decides the content and process towards the goal of restructuring and reform.

The Vietnam Association of Mechanical Enterprises approves that, in the current context, we have raised a number of core issues that are the concern of many domestic mechanical enterprises in Vietnam such as industry restructuring occupations, product and service markets. the ability and level of investment for reforming resources to reshape transparently and clearly what the main products of the business are and must be very feasible and qualified to meet the requirements of customers target products (remaining and improving quality, removing or adding) and providing that production and business is maintained beyond the pandemic, stabilizing and profitable.

Along with that is the restructuring of the organization, human resources, and tasks are implemented on the market principle: “Target – Set job – Manifest” with a qualified workforce. Especially, establishing a lean organizational structure, including full compliance, discipline, corporate culture, in line with international practices.

The Association of Mechanical Enterprises analyzes and restructures finance with the principle of publicity and transparency, mobilizes and maximizes the sources of money and assets that businesses have, and seeks support from policies for improvement. The best way is during the disaster period, negotiate with business partners, etc., to have money to maintain daily operations. And issues that need attention, based on professional analysis, legal compliance such as: Charter capital plan and ownership structure (increasing or decreasing capital, divesting or investing more capital outside the enterprise); Debt structure and other values to maintain cash flow; Reasonable financial plan; Standardize revenue recognition policy, cost analysis, cash flow, gross profit margin analysis; Check and supervise the work of accounting and financial statements.

old, Vietnamese domestic mechanical enterprises have a deep sense of and understand well that the restructuring and reform of resources is a prerequisite for survival and development in the market economy and deep integration. Therefore, businesses have also relocated their brains and enthusiasm to implement, many units have signed contracts to hire reputable organizations, consultants, brands (international and domestic) to survey, develop and appraise the restructuring project. Up to the present time, in addition to the successes of a number of businesses, the practice has also arisen and pointed out many limitations, difficulties and inadequacies that increase the concerns of business managers.

However, unpredictable fluctuations of the context hinder and destroy the path towards the goal of corporate restructuring. Technical factors, production lines, input materials for processing, manufacturing mechanical products and related services are basically imported from abroad. Therefore, when there are economic and political fluctuations in the world, the market will decrease, the supply is unstable, prices increase… these are the difficulties and challenges faced by Vietnamese mechanical enterprises. unpredictable.

Moreover, from the beginning of 2020, COVID-19 suddenly appeared, it devastated the world economy and caused terrible losses. At present, the epidemic is still developing dangerously and complicatedly, causing a global economic crisis, a slump in the market, a broken supply chain, many difficulties in human life, and a change in the existing order comprehensive and profound. The dangerous and negative impacts on businesses are currently impossible to measure and it has efforts to overcome difficulties towards each enterprise’s goals in the process of restructuring and reform.

In addition, the reality of Vietnam’s mechanical industry, in addition to including corporations and mechanical enterprises whose owners are private capital or private economic organizations, currently there are many ministries, Sectors (Industry and Trade, Transport, Agriculture and Rural Development, Construction, State Capital Management Committee…) and all localities nationwide are direct management agencies. Next, own a percentage of the capital with the statutory control or veto power in domestic mechanical enterprises.

From that practice, associations and associations related to the mechanical industry were established (including Vietnam Association of Mechanical Enterprises – VAMI) on the principle of voluntary participation of members. One of the basic tasks of the associations is to connect two-way between the establishment and the management agencies to solve practical problems related to orientations, mechanisms and policies, especially updating. strategic information to help increase resources for units and businesses. However, at present, there are many associations and associations established and the participation of businesses and units operating in the same field is dispersed, even by region or region. Moreover, at present, the activities of associations have not been legalized, especially the conditions for the association’s activities are still limited, so the provision of additional basic information to serve to strengthen and increase strengthening the enterprise’s resources has not met expectations and has many concerns.

Through analysis, we can see that the practice of accessing and capturing general information about the current state of the domestic mechanical industry, the potential demand for domestic and international mechanical products is very difficult and extremely difficult, distributed updates and not enough strategic coverage. Moreover, the data of imported materials and equipment from abroad to serve the economic development of the industry, associations and businesses have not had the opportunity or are not fully and accurately understood over time as well as according to the economic development plan of the country. That is the basic cause leading to the deviation of strategic vision and many inadequacies, overlaps, and passivity during the implementation of restructuring and reforming the domestic mechanical enterprises in Vietnam that we need to restructure to adapt to the new situation.

Source:BAO MOI