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By 2017, the value of the consumer goods market in Vietnam will reach $ 120 billion, recording an annual growth rate of almost 10% in 2012-2017, according to the report "Consumer Goods and Retail." South – first quarter of 2019 ".
Vietnam will be one of the fastest growing consumer goods markets in the emerging Asia-Pacific economies, along with Indonesia, India, the Philippines and China. double digit growth between now and 2022.
This is due to the increase in personal consumption in parallel with the growth of the economy. Low unemployment and rising minimum wages will continue to drive consumer spending in Vietnam.
In fiscal year 2017, $ 3.4 billion in cash was captured in the working capital of companies operating in the consumer goods sector and $ 1.9 billion in cash were captured in the retail sector. illustration)
However, in addition to the macro factors, the changing tastes of consumers are reshaping the way companies do business and consumer goods. Typically, high usage rates for mobile devices and the internet are driving e-commerce, which is reflected in the ever-increasing competition among the "giants" in the field. The supply and processing of goods in countries of the region is also becoming increasingly popular.
In this context, PwC's consulting and audit firm said that cash withdrawal and working capital management should become a priority for corporate development. However, according to PwC, the perception of some companies in working capital is limited to items in the balance sheet and the source of the congestion.
"The recent collapse of several retail chains, such as Toys" R "Us, Sears, Rockport, … showed the need for more rigorous customer risk management as well as payment sequences. will also increase the likelihood that companies will respond rapidly to changing consumer demand, "PwC notes.
The company reported that $ 201 billion in cash are stuck in the working capital of companies operating in the consumer goods sector and that $ 1.9 billion in cash is stuck. in the retail sector. This amount increased by an average of 15% per year. In particular, inventories accounted for more than 40% of working capital.
"In the projects that PwC advises, we see many cases where ambitious companies expand at exponential rates, but end up running out of money and struggling for survival.Red revenue, coupled with the growth in net cash flow from business operations, is what companies need to do to grow steadily, "said Johnathan Ooi, associate director general for consulting services at PwC Vietnam. Consider.
PwC Vietnam's working capital management consultant Mohammad Mudasser noted that the economy is booming due to low lending rates, so the credit crunch is not a big problem for companies when the loan is plentiful and available.
"Does this continue for a long time? Can the business continue to grow depending on borrowed funds?" He questioned and said that companies should focus on managing working capital or controlling cash flow to secure capital. Needed to compete effectively in today's business environment. For companies that operate effectively, working capital elements can be used as a means of increasing sales.
Mai Chi
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