Impacts of Economic Recession on Business Activities of Truong Giang Limited Company

The study was conducted in Truong Giang Co. Ltd, Hai Duong city. The main objectives of the study were i) to analyze impacts of economic recession on business activities of the company; ii) to understand adapting sollutions applied by company to overcome the negative impacts of economic recession, and iii) to propose feasible sollutions to help the company do business more efficiently under economic recession conditions. Systematical and participatory approaches; comparision and consultancy methods are main methods applied in this study. Results of the study show that economic recession has reduced capital sources, especially banking sources; increased input prices and changed payment methods of input suppliers that made business activities of the company more difficult; economic recession had negative impact on 82,6% labor force; and 62,6% of them has income reduced; Business efficiency has reduced in all indicators, especially in 2009 (ROS: -2,36; ROE:-2,80 và ROA:-1,64) and living standard of 82,9% labors has also reduced. To response to economic recession, the company has applied various sollutions. Exploition of government’s stimulus funding package; renegotiation and finding out more input suppliers; appropriately capital borrowing using plan; and better use of labor force are main sollution suggested by the study.