Field of activity: Aluminum production

1. Company introduction

Viet Y Aluminum Co., Ltd. was established in June 2016, is a factory producing aluminum profiles, aluminum alloys, providing aluminum raw materials for the fields of construction, industry and transportation. With a factory area of ​​6,500 m2, production output of 5,000 tons/year, closed production model, modern and high-tech production line equipment system.

Viet Y Aluminum has a team of leaders with rich experience in management with more than 20 years of experience in operating aluminum factories. A team of technical staff knowledgeable about the production, design, construction and installation of aluminum products for the fields of furniture industry, civil construction, and roads and bridges. Along with a team of skilled workers with many years of experience in operating production technology equipment lines.

With the slogan "Trust comes from quality" since its inception, the company has built a product quality management system in production according to the ISO 9001:2015 Quality Management System. All products are strictly controlled through each stage based on domestic standards TCVN16:2014/BXD and international standards such as ASTM of the US, JIS of Japan, DIN of Germany.
The three criteria "Good quality creates good products, perfect service and reasonable price" are the factors that connect the company with customers.

In the coming time, Viet Y Aluminum strives to become a leading supplier in the field of aluminum in the Vietnamese market and reaching out to the world, affirming its position as a reputable and strong enterprise based on a foundation of quality. Good product quality, satisfying customer needs.

2. Difficulties in the company's operating procedures

• Production management: There is no tool to manage workshops and production machines, production logs are recorded on excel files -> Takes a lot of time to compile statistics
• Mold management: Managed on excel file, statistics on inaccurate mold information, no mold maintenance warnings
• Statistics: There are no reports by machine, by product code...
• Human resource management: Management of workers' shifts is not accurate

3. KCTech accompanies Viet Y Aluminum in the digital transformation

​With a very clear awareness and vision of Viet Y Aluminum to strive to become a leading supplier in the aluminum field in the Vietnamese market and reach out to the world, digital transformation is a journey that needs to be taken. urgently to meet the current speed of building facilities and infrastructure. Thanks to its experience in implementing production management and control software, KCTech has gradually overcome initial difficulties and brought Viet Y Aluminum closer to the goal of completing digital transformation and sustainable revenue growth. solid.

The application and deployment of the kOne system helps Viet Y Aluminum increase the efficiency of overall Factory management by integrating IT resources and improving functional systems:

Production department:

+ Minimize data entry work

+ Full tools to track and monitor the production process and finished product quality

Mold parts:

+ Monitor and update the status and quantity of molds and mold drawings produced

+ Helps manage maintenance requests

Statistics department:

+ Minimize time and increase statistical reporting accuracy

+ Report in many dimensions

Board of manager:

+ Provide the most complete, accurate, and timely information on all issues related to the company's production and business

+ Prepare comparative reports and evaluate visual production status

With a very clear awareness and vision of Viet Y Aluminum to strive to become a leading supplier in the field of aluminum in the Vietnamese market and reach out to the world, digital transformation is a journey that needs to be done urgently. to meet the current speed of building facilities and infrastructure. Thanks to its experience in implementing production management and control software, KCTech has gradually overcome initial difficulties and brought Viet Y Aluminum closer to the goal of completing digital transformation and sustainable revenue growth. solid.

Field of activity: Production of fire extinguishers and fire extinguishing foam

1. Introduction to the company

Established in 2018. Starting as the first firefighting foam factory in Vietnam, Vina Foam developed and affirmed its strength with new steps, immersing itself in the flow of the fire prevention industry. Fire fighting is developing rapidly around the world. Towards sustainable production development.

Following the successful steps of the firefighting foam factory, in 2020, Vina Foam officially invested in a modern fire extinguisher production line with technology from Europe. After 1 year of construction, the first fire extinguisher product lines under the Vina Foam brand "Made In Vietnam" have begun to leave the factory and enter the market, bringing comprehensive safety solutions to the community and society. . Vina Foam – Committed to meeting all quality inspection standards when supplying products to the market. More than ever, life safety is always the goal of VinaFoam  products

2. Difficulties in the company's operating procedures

Talking to KCTech, a representative of Vinafoam Vietnam Co., Ltd. said the business encountered the following problems:

For production department:

No production line management system: As an enterprise that produces and distributes large quantities of fire extinguishers and fire foam concentrates in Vietnam, Vinafoam has difficulty managing and monitoring the production process. exported at each stage for each order. Currently, the company is still using a manual production process, leading to many errors in the process of managing orders and spending a lot of time closely monitoring.
Managers cannot monitor the productivity of each worker to understand work performance and order completion time.

For human resources department:

As a manufacturing enterprise, Vinafoam has many ways to calculate wages for workers such as: Calculating wages according to shifts, calculating wages according to orders,... This is the point that creates many difficulties in the process of calculating wages for workers. workers, easily causing salary delays.

For accounting department:

The manual accounting work that businesses are applying takes a lot of time and sometimes leads to errors in the process of data entry, making income and expenditure reports, and managing cash flow for the business.
Not being able to plan revenues and expenditures and purchases accurately leads to difficulties in the inventory process or large quantities of inventory.

In addition, the business's process still has many shortcomings because it is using manual methods, leading to errors in calculating revenue and costs. Therefore, businesses really want to be able to build a management process from receiving orders from customers to planning production, calculating outsourcing to purchase goods, then conducting production and sales. , equipment maintenance and management, logistics management...

3. KCTech accompanies Vinafoam Vietnam Co., Ltd. in the digital transformation

Vinafoam Co., Ltd. After a period of studying, researching, and evaluating the suitability for the scale and nature of the business, the company's board of directors decided to choose KCTech as the unit to implement the overall management solution. manufacturing enterprises, helping to optimize production processes, maximize cost savings and improve working performance.

With the investment and implementation of kOne production management and operation solution, Vinafoam Vietnam Co., Ltd. gradually advances to the following advantages:

For production department:

The software will help manage the production process effectively, including: from buying - selling, receiving production orders, warehousing,... from there to calculate product costs so that administrators can have an effective business plan. more effective.
Grasp the production situation and completion time of orders to optimize the production process in the enterprise.

For accounting department:

The software has supported the business's accounting department to effectively manage cash flow for the process of purchasing raw materials, managing inventory, and inventorying warehoused goods to help ensure supply to customers.
Minimize data entry time for the accounting department, track receivables and payables and plan revenue and expenditure with just simple operations on the software.

For purchasing department:

Provide tools to calculate raw material needs according to production norms for businesses to avoid incurring storage costs and ensure optimal production costs for each order.

For sales department:

The software supports businesses in making orders, managing sales, tracking revenue for each sales employee and providing sales management reports for administrators.
Track the order shipping process, avoid lost goods and understand delivery time.

For human resources department:

Easily calculate salaries by shift, by product, salary, etc. for workers in the enterprise, meet payroll on time, and produce quick and timely reports for managers.
Grasp the performance of employees to have appropriate welfare policies, rewards, and reminders.

With the vision of becoming a mechanical manufacturing enterprise providing customers nationwide, Vinafoam Vietnam Co., Ltd. has been very successful in applying kOne digital transformation solutions to improve work efficiency and save money. Maximize time and cost savings. And overcome the difficult problems that businesses are facing.

Field of activity: Manufacturing

Products used: kOne software

1. Some information about SingNam Aluminum Factory

As the owner of the high-end painted aluminum brand Singnam, a brand that began operating in 1990 with architectural aluminum and glass products, the company has now built a wide dealer system throughout the North. , distributing high-quality aluminum products. The main business items are high-quality painted aluminum products with many colors, rich product categories, and diverse designs suitable for Vietnamese style. Singnam high-quality aluminum has been used in many large projects throughout the provinces across the country.

Singnam Aluminum Factory uses 05 extrusion machines, manufactured using Taiwanese technology, to meet all products of large and small sizes, with different hardness and features depending on product requirements. .

The high-quality electrostatic aluminum brand Singnam was exclusively registered in 2010, produced on a modern technological line. The paint system is imported from Switzerland, manufactured using technology that is widely applied in Singapore. The product is expected to bring Vietnamese consumers the highest quality products at the most competitive prices.

2. Difficulties in business management processes

Deadline is coming but don't know it; Frequently miss deadlines
Tasks are assigned sporadically via Email, Zalo, Skype...
Statistics are for reference only and not actual at the time
Taking notes using paper forms takes a lot of time to compile reports
Raw material consumption costs are generally determined and cannot be allocated to each finished product at the time of production
Calculate device efficiency: accuracy is not high, not practical
Lack of personnel with technological capabilities to execute the process
Businesses are using many different software, not integrating common data, causing waste of time and effort when using
Management:  Taking a lot of time to approve, not approving promptly when absent from the office

3. KCTech accompanies SingNam Aluminum Factory in the digital transformation process

After a close discussion process, KCTech is very honored to be selected by SingNam Aluminum Factory to implement production management and operations solutions. With the goal of helping businesses:

Production department:

- Minimize data entry
- Full tools to track and monitor the production process and finished product quality
- Workers can easily use it with simple operations

Mold parts:

- Track status updates, produced quantities of molds, and mold drawings
- Helps manage maintenance requests

QC department:

- Quickly receive quality warnings from the production department
- Strictly control the quality of raw materials

Sales:

- Easily manage and track sales orders
- Full and accurate information summarizing sales results

Parts warehouse:

- Easily manage inventory, minimize errors
- Inventory inventory is easy

On January 6, 2024, at the Conference, the Association held an Admission Ceremony and awarded certificates to 04 new member enterprises:
1. Dong Phong Aluminum Company Limited
2. Tan A Aluminum Company Limited
3. BKQ Trading and Production Company Limited
4. KCtech Technology Joint Stock Company

The conference discussed and approved the report summarizing activities in 2023 and orienting the mission plan for 2024.

Some main tasks include:
(1) Focus on implementing trade defense measures in the Aluminum industry: Efforts to complete the final work to achieve the goal of extending trade defense measures on aluminum profiles imported from China. 5 years and closely following the developments of the US anti-dumping investigation of aluminum extrusions of Vietnam and 14 countries;

The conference took place successfully

(2) Continue to recommend reducing export tax on aluminum products in the form of bars, rods, and shapes with code HS 7604 from 5% to 0% to increase competitiveness and expand export opportunities for Vietnamese aluminum in the world. international markets…
(3) Organize seminars on market conditions for businesses to exchange and share information to build a healthy and developed market.
The conference also approved the Association's 2024 activity program with the expected focus on events such as: Aluminum Industry Business Forum in 2024, the 2nd Congress for the 2024-2029 term and other programs. Annual conference: 6-month preliminary conference, conference to summarize activities in 2024.
The conference also received interest in sharing useful information from Vietnam Military Commercial Joint Stock Bank - MB and Rusal Group.

Optimizing inventory turnover will help businesses increase revenue and reduce costs. Because when determining the inventory turnover index, leaders can plan production, import goods as well as manage inventory quantities extremely easily. So what is inventory turnover and how is it calculated? Let's find out in the section below.

What is inventory turnover?

Inventory Turnover, in English, is an index used to measure the number of times a business sells its inventory in a certain period of time. Inventory Turnover is considered an important financial indicator that helps leaders accurately measure inventory management capabilities throughout the entire operation of a business.

Inventory turnover represents the number of times a business sells inventory during a certain period of time

When people want to analyze business performance, they often calculate the inventory turnover ratio to compare the ratio between sold goods and stocked goods during the same given period of time. From there, managers know which products are being imported and exported ineffectively so they can have ways to adjust sales more effectively.

Meaning of inventory turnover

As many people know, a large amount of inventory means a high amount of capital "locked up" in warehouses. On the contrary, if there is not enough inventory, production and distribution will be interrupted. Therefore, balancing inventory is the best "key" for businesses to operate stably. To ensure this factor, calculating inventory turnover is very important.

Inventory turnover ratio helps businesses:

• Determine the enterprise's inventory management ability through comparing data over the years
• A high coefficient shows that the turnover rate of goods in the warehouse is fast
• A low coefficient shows that the turnover rate of goods in the warehouse is slow, low, and the inventory is large.
• Inventory turnover ratio can help businesses make better decisions about pricing, production, marketing and purchasing. This is one of the efficiency ratios that measures how effectively a company uses its assets.

How to calculate inventory turnover

The inventory turnover ratio is calculated by dividing sales by the average inventory value for the same period.

Formula to calculate inventory turnover:

Inventory Turnover = Revenue/Average Inventory Value

In there:

• Revenue is the total revenue of a business's sales cycle. If your business controls this index by year, it will take the total revenue of the entire year (365 days).
• Average inventory value is the average value of the beginning and end of the inventory cycle.

Example of inventory turnover

Actual problem: The total revenue of the business in 2021 is 900 million and has an inventory value of 30 million VND.

Applying the above formula for calculating inventory turnover, we get:

The turnover ratio will be equal to: 900,000,000 / 30,000,000 = 30. So it can be seen that you have turned inventory 30 times in 2021.

Number of days in a rotation/year: 365/30= 12.17. With these numbers, you can understand that your business will receive new goods every 12.17 days. Based on that, you can estimate the appropriate time to import goods and have a more specific business plan.

How much inventory turnover is good?

This is a question often asked when calculating inventory turnover. The higher this index, the better the business's sales. However, there will also be some risks that businesses will not have enough supplies to supply the market if the demand for that product suddenly increases sharply. Then direct competitors will take the opportunity to attract a large number of customers to the business

A reasonable inventory turnover index depends on many factors such as product type, cash flow or market, etc. Therefore, depending on each business, inventory turnover will have appropriate indices.

Several factors affect inventory turnover

• Purchasing demand: This is probably the factor that most affects inventory. If the product does not reach the right target customers and does not stimulate purchasing demand, businesses will have difficulty selling products, causing inventory turnover to decrease. So, create a marketing plan that targets your target customers and increase your promotional programs. This will help significantly improve the Inventory Turnover index.

• Purchasing trends: Usually on important occasions of the year, such as holidays, market demand will increase suddenly. Anticipate this trend to rebalance your business's supply sources. You can encourage customers to order in advance so that the business can prepare the best products.

• Sales method of the business: If customers already know the product and want to buy it but you cannot stimulate customers to buy more, this index will not reach the expected level. So, plan to attract customers to increase order value each time they shop, train a professional sales team to be able to advise and cross-sell more products, and help keep goods in the warehouse continuously filled. new, thereby increasing inventory turnover.

• Grouping groups of goods that do not have the same properties: If you calculate all the items that the business provides together, it will create an inaccurate circular coefficient. Items with high profit margins should not be grouped with items with low profit margins. Otherwise, the inventory turnover is no longer accurate.

6 How to optimize inventory turnover

Here are 6 ways you can optimize inventory turnover for your business:

Stimulate shopping demand: By creating marketing promotions, incentives, gifts, etc. for customers, businesses can increase the inventory turnover index.

Dividing product groups: Businesses need to divide into a group of best-selling products and slow-selling products, thereby having an accurate import and sales policy for each group.

Increase order value: Analysis of factors that can increase order value such as pricing strategy, customer service staff training, sales, upselling, cross-selling, etc.

Work with suppliers to get low import prices: Negotiate with suppliers to get the best import prices.

Use software to improve forecasting:  Sales numbers and inventory reports provide much of the hard data needed to make inventory forecasts more accurate. This data can also help with future sales planning, such as buy 1 get 1 free policies to push slow-selling inventory.

Develop a pricing strategy: Price is one of the important factors affecting the consumption level of goods. Therefore, businesses need to review pricing strategies and analyze the impact of each strategy on sales. Without a specific strategy, price reductions are unlikely to increase sales and customers may only buy a business's products when they receive incentives. Therefore, businesses need to consider more long-term options. For example: Premium, negotiation, seasonal, delivery method, different prices for different customers, cost plus price (bonuses and added value to the order), Popular pricing strategy with price,…

Production management software is a solution that helps digitize processes in factories. Workers can enter data into the system, reducing errors and paper usage by up to 80%. The software also allows displaying real-time production reports, helping management monitor production progress, make decisions or handle problems faster and more effectively.

In this article, let's join KCTech to learn about the outstanding benefits that production management software brings to every business.

What is production management software?

Abbreviated from Manufacturing Execution System, MES production management software is an information system that connects, monitors, and controls production systems and complex data flows at the factory. This is also a comprehensive solution to meet the real-time production management and operation needs of businesses.

 Manufacturing Execution System

In the age of technology 4.0, when finding a comprehensive management solution becomes extremely important, production software applications have the ability to integrate the entire business processes and data systems of many Different applications are considered the key to helping businesses improve their competitiveness in the market.

Benefits of production management software

Production management is a job that requires specialized skills and high meticulousness. Managers need to have a comprehensive and detailed view of all activities taking place in the factory. Without support tools, managers often have to be present 24/7 at the production site to ensure operations are carried out with the highest productivity and quality. To solve this difficult problem, many businesses have used production process management software.

Below are some typical benefits that production management systems bring:

Manufacturing Execution System helps improve performance, quality and reduce errors for manufacturing businesses

Overall management of the business

When integrating MES production management software with other functional systems such as ERP, PLM, businesses will create a solid technology backbone that acts as the heart of the manufacturing plant, helping to manage closed operations. covers all tasks from order setting, further production needs to planning, progress monitoring, traceability, quality management...

Reduce production downtime

Production management software not only allows controlling the quality of end products but also controls each stage and issues warnings about equipment failures if there is a trend. This will help businesses overcome losses due to machine downtime or minimize product rework time.

Cut paperwork with production management software

The MES system tracks production operations on a digital platform, helping businesses no longer need to view information on paper to manage work, thereby minimizing loss or inaccuracy in the process. Manual human data entry.

Automate production processes with production process management

Management with MES production management software helps businesses standardize business processes, because then, intermediate operations arising from manual operations are completely replaced by technology applications, helping the process streamlined, automated, increasing the level of accuracy and efficiency in operational management activities.

The benefits of production management software for the supervisory department and business leadership

• With production management software, the supervisory department can easily have a detailed view of the complex factory area and can regularly report work progress to the management department. In addition, communication through software will improve the working efficiency of each department thanks to the transparency of data;
• PProduction management software provides a central dashboard that allows displaying all data in production and supports immediate warnings of unusual problems occurring in real time. This allows administrators to instantly update production capacity every day and handle arising errors promptly. In addition, by visualizing data on digital screens, businesses can monitor and control overall production activities at the factory in a way that is easy to observe, understand and communicate.
• Provide planning solutions to help boost sales, minimize production costs and handle bad situations that quickly arise in the enterprise's production and business activities.

Implementing a production management system - An important stepping stone for every manufacturing enterprise to transform

MES is the key to the process of building a smart factory model, where factories become smarter and operate more efficiently. In this model, the MES production management system becomes the connecting element between the connection and automation layer (PLC, SCADA, IIoT...) with the planning (ERP) and strategy (BI) layer. In addition, the application of MES allows businesses to keep up with today's increasingly competitive global market, through quality control, compliance, delivery requirements and lifecycle management capabilities of product.

MES production management system is the key to building a smart factory model

Should choose customized MES production management software (Customized) or packaged (COTS – Commercial Off-the-shelf)?

On the market today, there are a variety of MES software that are packaged (COTS) and customized (Customized). Therefore, the criteria for choosing a production management software system that suits your production model is a concern not only for any business. Although they all have the same goal of connecting production data and monitoring complex operational flows at the factory, each solution offers distinct advantages as well as different problems.

There are two types of production management software: customized and packaged

Packaged MES production management software (Commercial Off-the-shelf MES or abbreviated as COTS MES)

For packaged MES solutions, this is a type of software deployed by manufacturers based on an available template, including common functions deployed in many units. The obvious advantages of this type of software are: it can be widely applied with short deployment time, is easy to install and use, and the overall cost is not too high. However, packaged MES solutions often aim at generality, making it difficult to go deep into specific operations and cannot cover all the characteristics of the business.

Customized production management software (Customized MES)

For customized MES production management software solutions, the supplier will research and develop based on the unique characteristics of each unit to adapt to the requirements of the operating process that the business is applying. . Before implementing MES production management software, the supplier will conduct actual surveys to create a thorough evaluation process. This ensures that when the solution is put into practice, it can meet the specific and practical needs of each business.

For manufacturing factories, with characteristics such as a cumbersome management apparatus or a huge number of machines and equipment as well as workers... requiring a solution that can meet the above problems. Additionally, as factory scale expands, the need for governance and execution in production becomes greater. This forces each unit to reinvest in factories as well as expand the scope of software impact, in order to create greater economic efficiency.

Building a completely new management system will not be the optimal choice, instead it is to develop more from existing modules of production management software and expand links with other technology solutions ( such as other design software, ERP software, control software for functional production machines...). And towards the smart factory vision, packaged software is not considered a wise choice when it cannot go long distances with the business and keep pace with daily technological changes like today. Therefore, businesses absolutely need to deploy an MES solution designed according to their specific characteristics.

kOne production management system customized according to business characteristics provided by KCTech

KCTech Technology Joint Stock Company is a pioneer in the field of implementing business management solutions with many customers nationwide... KOne production management and control software provided by KCTech is not only Designed and developed in-depth according to business requirements, but also accumulated knowledge and successful management models of many large and typical enterprises in the industry.

Therefore, depending on the actual situation, the production management software system is adjusted to a separate and unique version according to the unit's characteristics with 6 core modules to fully meet the needs of every manufacturer. export:

• Production Management: Production Scheduling, Management of Production Orders, Analysis of Production Performance, Management of Production Steps, Real-time Production Tracking and Monitoring;
• Warehouse management: Raw material warehouse management, Finished or semi-finished product warehouse management, Inventory management across production stages (WIP);
• Quality management: Output product quality management (OQC), Input material quality management (IQC), Production process quality management (PQC);
• Equipment management: Manage equipment records, Manage spare parts and supplies, Monitor equipment status, Plan maintenance and equipment maintenance;
• Traceability management: Provides a detailed view of the product journey through each stage of production from raw material to finished product with a single indicator;
• IoT device integration, manufacturing machine connectivity: Connect to industrial automation layer for automatic data capture, real-time OEE calculation combined with centralized control system for increased visibility and operating performance;

KCTech has built comprehensive production management software for your factory through the kOne production management software system. From there, administrators can make faster and more accurate decisions during production operations to improve competitiveness with competitors. kOne application is the choice of many businesses in many different manufacturing industries such as: shaped aluminum bars, production of fire prevention materials, iron and steel, tissue paper...

To become a pioneer in your manufacturing industry, contact kOne experts via the contact section. KCTech commits to long-term companionship with businesses to successfully build production management software and smart factory solutions.

1. What is profit margin?
Profit margin is an important financial indicator in accounting and corporate finance, representing the ratio of profit to revenue or sales of a company. Profit margin is calculated by dividing net profit by revenue or sales, after deducting all costs associated with running the business.

Profit margin is an index that represents the ratio of a company's profit to revenue or sales.

Profit margin is usually expressed as a percentage and helps measure a business's ability to generate profits from operations. This is an important tool to evaluate a business's financial performance and compare it with other companies in the same industry or over different periods of time.

A high profit margin is often considered a good sign because it shows that a company can make a profit from its business operations. However, profit margin must be considered along with other factors such as company size, industry, and specific market.

2. Meaning of profit margin

After understanding what profit margin is, businesses also need to understand the meaning of profit margin. When evaluating a company's performance, the focus is often on total revenue, net profit or business expenses. However, these numbers do not help identify the core issues, the nature of the business's performance and operating capabilities.

Instead, profit margin is a standard measure to evaluate the potential and profitability of a business. Specifically:

• If the profit margin is high, it proves that the company's management operations are stable and profitable. In addition, high profit margins mean low commission rates, which shows that the business is managing costs well and optimizing its operating budget.
• If the profit margin is low for a company it means that the company makes little profit, low profitability. This may be because the company sells the product at a lower price or because the product price (production cost) is higher than the market.

3. Classification and calculation of profit margin

Profit margin is divided into three categories: Gross profit margin, net profit margin and operating profit margin. Each type of profit margin has a different calculation method as follows:

3.1. Gross profit margin

What is gross profit margin? Gross profit margin is a measure that reflects the profit a company earns from sales costs and cost of goods sold. The efficiency of using labor and materials in the company's production and business process can be expressed by gross profit margin.

The formula for calculating profit margin that businesses can refer to is as follows:

Gross profit margin = (Revenue – Cost of goods sold)/Revenue

For example: Business X's revenue is 890 million VND. Cost of goods sold includes the cost of purchasing raw materials and labor costs of 200 million VND. Thus, gross profit margin = (890,000,000 – 200,000,000)/890,000,000 ≈ 77.5%. When gross profit margin is high, the company has a cash surplus. Businesses can use this excess money for many different business development purposes including expanding business scope, reinvestment, product development,... In addition, gross profit margin will decrease if cost of goods sold increases. Therefore, businesses need to have appropriate spending policies to maintain a stable gross profit margin. When the gross profit margin is high, the company has a cash surplus. Businesses can use this excess money for many different business development purposes including expanding business scope, reinvestment, product development,... In addition, gross profit margin will decrease if cost of goods sold increases. Therefore, businesses need to have appropriate spending policies to maintain a stable gross profit margin.

Net profit margin represents the relationship between net profit and revenue

3.3.  Operating profit margin

Operating profit margin is the activity of comparing profit before interest and taxes with sales revenue. This index allows businesses to self-assess their effectiveness in managing and generating revenue from production and business activities.

The formula for calculating operating profit margin is as follows:

Operating profit margin = Pre-tax revenue/Revenue

For example: A company has pre-tax profit of 650 million VND and revenue of 900 million VND, then operating profit margin = 650,000,000/900,000,000= 72.2%.

Hopefully this article from KCTech has helped businesses better understand what profit margin is as well as how to accurately calculate each specific profit margin. Don't forget to follow other useful articles on KCTech's website to update information about operations management in businesses.

Vietnam is an attractive destination for global corporations in the field of innovative technology.

In early September, a representative of the Ministry of Industry and Trade informed that Apple Group had completed the transfer of 11 audio-visual equipment factories to Vietnam. Intel Corporation expanded phase 2 of its chip testing factory in Ho Chi Minh City with a total investment of 4 billion USD.

A series of big names such as Boeing and Google have also announced looking for suppliers and developing production facilities in Vietnam, after a long period of researching the business investment environment. All show that Vietnam continues to be an attractive destination for global corporations in the field of innovation.

Foxconn Group has been present in Vietnam since 2007, specializing in manufacturing consumer electronics and communication products. To date, Foxconn has invested 3.2 billion USD in Vietnam.

At the end of June, Foxconn was just awarded investment certificates by Quang Ninh province for 2 new projects, with a total capital of 250 million USD, as a commitment to continue accompanying Vietnam to develop the public sector. high technology.

“In the coming time, we will continue the 3 + 3 strategy in the Vietnamese market, focusing on 3 emerging industries: electric vehicles, digital health, robotics; with the application of three new technology fields: artificial intelligence, semiconductors and communication technology," said Mr. Chau Nghia Van, Deputy General Director of Foxconn Group in Vietnam.

Vietnam possesses many advantages to attract investment such as young consumers and abundant labor source.

Marvell IC design group from the US announced that it will soon establish a large-scale design center in Vietnam. After the next 3 years, the group will increase its staff size by 50% compared to today.

“Engineers in the US who have just graduated from college are paid between 100,000 - 120,000 USD/year, while engineers in Vietnam average only about 1/10. If working abilities are equal, there is no reason not to invest in Vietnam," said Mr. Nguyen Quang Dam, General Director of Marvell Vietnam.

Last weekend, more than 60 Singaporean businesses were also present in Vietnam to attend the Business Connection Conference between the two countries and visit the National Innovation Center to seek investment opportunities, especially in the field of innovation. digital economy field.

"Vietnam's digital economy has great potential, contributing up to 30% of GDP by 2030. We want to participate in that journey," said Mr. Jason Bay, Director of Sea Group Operations Office (Singapore). ), share.

That shows that Vietnam still has a lot of potential that needs to be awakened, especially in innovative and pioneering fields such as semiconductors, clean energy, etc. Vietnam also possesses many advantages to attracting investment such as young consumers, abundant labor resources and, importantly, a desire for sustainable development.

Building high-quality technological human resources

A team of young engineers with reasonable salaries is one of Vietnam's advantages in attracting foreign investment in innovation. However, there is a reality that must be recognized that in general, Vietnam's high-quality human resources do not completely meet the requirements.

According to a survey from the Provincial Competitiveness Index (PCI), more than half of Vietnam's workforce is assessed by FDI as only at an acceptable level. Therefore, training and fostering human resources will be an important key to promoting innovation in the coming time.

A recent survey by recruitment agency Navigos Group shows that Vietnam is facing a shortage of high-quality technology personnel. For a group of engineers with less than 1 year of experience, the stable job rate is quite low (nearly 24%). While for the group of engineers with 3 - 8 years of experience, the stable job rate is higher (65%).

On the other hand, most technology companies surveyed said that each year they only recruit about 30% of the staff to meet their professional needs among candidates.

“Every month we still have to recruit 80-100 people, but we still cannot meet work needs. There are many jobs that we are temporarily not accepting while waiting for additional resources to come into the company," said Mr. Nguyen Hung Cuong, Managing Director of NashTech Vietnam.

According to the Ministry of Information and Communications, Vietnam needs to overcome the shortage of high-quality technology personnel by solving the problem from the root, that is, improving the quality of graduates.

“Coordinate with training facilities, set topics for training; Collaborate in teaching, accept interns, and provide scholarships. At the same time, we will coordinate with relevant agencies such as the Ministry of Education and Training and the Ministry of Labor, War Invalids and Social Affairs to innovate training methods, enroll students, and improve the quality of training programs." Mr. Nguyen Thanh Tuyen, Deputy Director of the Department of Information Technology and Communications Industry, Ministry of Information and Communications.

As for new, pioneering fields such as semiconductors, the country currently has nearly 5,600 chip design engineers, which can only meet 20% of demand, so policies to attract human resources are needed. available.

“Proposal to develop a project to establish chip design centers and research centers; Build a project to train 50,000 engineers and experts in the semiconductor industry. At that time, we were in a different mindset and position," said Minister of Planning and Investment Nguyen Chi Dung.

Experts recommend that there should be national programs to improve the quality of training for the semiconductor industry in particular and the innovation field in general, which must include cooperation between the State and schools. - enterprise.

In the future, everything will become smart, everything will be equipped with chips. The demand is huge, the problem is our production capacity. Developing high-tech human resources is the solution to seizing opportunities for Vietnam.

This weekend, the National Innovation Center (NIC) will be inaugurated at Lang Hoa Lac High-Tech Industrial Park, Hanoi. Once put into operation, this place is expected to become the nucleus of an innovation ecosystem, a place to incubate and train high-quality human resources for Vietnam.

According to VTV News