2012 Year – end statement

By this time last year, we had forecast 2012 would be a bad year but it turned out a very bad year, extremely bad.

Political tension, economic failure, bankruptcy, hyper inflation, high lending rate, unemployment, bear stock market, massive arrest of big figures etc… are the words to actually reflect the real economic life in Vietnam.

Top state owned corporations (kind of chaebol) threw billions US dollars away in their diversified but wasted investment or embezzlements, local banks lost billions in scandals or frauds or in bad debts, hundred thousand enterprises dissolved, millions worker lost jobs, massive housing projects abandoned with thousand trillions value of properties unsold.

Year-end bonus, a norm in local business or any where else, is now a wish of many office workers, even those employed by first class banks.

Some even still not receive salary since this June.

Social is very stressful and criminal rate increased to unbelievable level.

Unlike the luckier Greek with EU’s support and its own democracy, Vietnamese and enterprises are struggling without any help nor guidance.

In fact, we did also actively fight to survive by applying right approach in business (low profile, fast cash and neat inventory) and secured risk management, despite being in troubles sometimes.

Friendly clients or banks, right moments or positions in the market, smooth operation in coffee market are our aces in this year.

All above turned into an increase of 18,2% on turnover, a return of 19,5% to our equity with enough reservation for salary, bonus and other budget allocations.

Our view is that entrepreneur is somehow human body alike, grows up with diseases along and key point is we grow better and our immune system works more effective.

In the 2013, being a devastated economic, Vietnam will take more times to fix its problem and get out of troubles.

We see it is still a difficult year with following predictions;

– GDP growth is at low end of 5% and the whole economy will bottom out at very slow speed.
– Inflation is still high and cooling down not because of macro adjustment but buying power exhausted.
– Local currency will be devaluated and export will boost up to compensate the empty budget.
– Supply of money and credit policy will be improved to a level not to wake up the inflation.
– Unemployment is on the rise and bankruptcy continues spreading in the first half of the year.

In that scenario, we remain cautious but ready on the gear for the green light.

We again highly appreciate the contribution of our Management and Staffs to what we have achieved in this 2012.

Our sincere thanks to our Partners, Clients here, there and everywhere to have supported us in that terrible year and hope to receive your continued cooperation in the years to come.

We wish you all a Merry Christmas and Happy New Year 2013.

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