From the initial year of launch, we supported the business revitalization of the Vietnam subsidiary, which faced numerous challenges, starting from the second fiscal year.
We provided hands-on support, from identifying on-site issues to implementing specific improvement measures, and successfully turned the company profitable starting from the third fiscal year.
Summary of Results
We conducted detailed on-site interviews and investigations into the local subsidiary’s financial, accounting, legal, project management, troubleshooting, human resources, and labor situations.
We identified numerous issues, including unpaid accounts receivable, outstanding taxes, contract disputes due to failed M&A, neglect of human resources and labor matters, communication errors with the parent company, discrepancies between reported financial figures and actual business performance, unnecessary outsourcing costs, and vendor selection challenges.
First, by normalizing the business flow, we achieved a 50% reduction in fixed costs in the second year of the local subsidiary without cutting personnel expenses, while also reaching 200% of the previous year’s sales.
In the third year, we implemented business revitalization for profitability and rapid expansion starting from the third year.
Comment from the person in charge
We took over the business revitalization from the second fiscal year, starting from the very poor management and various troubles faced in the first year of the local subsidiary’s establishment. In about six months, we brought the local subsidiary back to zero from a negative state, and for the next six months, we provided comprehensive support as the subsidiary began to accumulate results and numbers.
