Break-even Point and Vietnamese SMEs

During the process of consulting and supporting businesses to invest in Vietnam for nearly 20 years, we deaply realize that Vietnamese SMEs face many limitations in shaping and maintaining sustainable development and changing the quality of their businesses. The cause of this current situation comes not only from objective reasons about financial capacity, but also from the management ability that has not achieved the necessary efficiency. That also makes it very difficult for SMEs in the post-covid period in Vietnam.

When it comes to effective corporate governance, businesses in general and SMEs in particular need to apply management accounting functions to the company’s operating system. Some SME managers have shared with us that their businesses are still small or not financially able to apply management accounting tools to their business operations. This is really unfortunate, because SMEs seemly ignore the opportunity costs needed to operate and grow to a higher level in a competitive market.

Here, determining the break-even point for the characteristics of business and production is extremely urgent. Through the break-even point of view,  SMEs can determine their actual operating capacity. At the same time, SMEs can build  up an appropriate capital asset structure around the actual break-even point. Therefore, with the adjusted financial structure in line with reality, SMEs can use leverage and other capitalizing measures flexibly and appropriately. Finally, SMEs can be flexible and survive in an increasingly competitive market after the Covid pandemic.

We, Dong Du International Accounting, Taxes & Legal Consulting Group HCMC, A member of ONESMP Singapore, are committed to accompanying SMES, assisting SMEs in establishing an efficient and cost-effective business break-even point to help SMEs form becoming more competitive in the regional market.

Toni Tran CEO                                                                                                                                Master in Japanese accounting, CPA, CPTA, lawyer, PhD student in corporate governance at UBIS University Switzerland.

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Dong Du International Accounting, Taxes & Legal Consulting Group Vietnam, A member of OneSMP Singapore, Southeast Asia Business Consulting Network, we specialize in accounting services, corporate tax advice, legal advice, business training, human resource consulting, product & market surveys…over 15 years up to now in the Vietnam market. Currently, we have also built a team of foreign experts from Japan, Singapore, Thailand, Cambodia … to help customers inside and outside Vietnam to expand appropriate business opportunities as well as possible.

[SETTING UP COMPANY, ACCOUNTING, TAX, LAW COMPLIANCE, HR…IN HO CHI MINH, VIET NAM FOR FOREIGN INVESTORS]

Home page: www.japanvietnam.com.vn. ; https://ddbis.edu.vn.
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In case you have any question, please contact us at tonitran01092020@gmail.com or Tel/ zalo/Whatapps: 090 925 7602 for your references.

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