Covid-19 takes toll on small, large firms

The novel coronavirus, now officially named Covid-19, has dealt a blow to both small and large firms.

Covid-19 takes toll on small, large firms

A view of the Saigon Hi-Tech Park in District 9, HCMC. The coronavirus outbreak has taken toll on many firms on the local market

The V-SixtyFour fashion shops owned by Viet Thang Jean Co., Ltd, (VitaJean) have seen few buyers over the first half of February as shoppers have been warned to avoid crowds to protect themselves from being infected with the coronavirus.

Phan Van Viet, chairman of VitaJean, noted that since the Covid-19 outbreak, the revenue earned by the V-SixtyFour brand at commercial centers has plunged by 80% year-on-year.

Facing the same fate, many shopping malls are now deserted due to growing concerns among shoppers over the spread of Covid-19.

Many salespeople at shopping malls in HCMC’s District 1, such as Vincom and Takashimaya, told the Saigon Times that the number of shoppers arriving at stores each day is less than the number of employees there at the time.

The off-peak shopping season after the Lunar New Year holiday and the coronavirus outbreak have sent the fashion industry into a slump.

Viet noted that tens of V-SixtyFour stores have opened at many shopping malls nationwide, adding that rental fees for these shops account for 20%-25% of the total revenue. Given the gloomy trade, the firm will not have enough money to pay its leases.

Apart from this, unsold clothes will eventually go out of style, adding pressure to the firm’s business, he added.

In addition to the fashion industry, many firms active in various sectors stressed that their business activities have run into difficulties due to the coronavirus spread.

At multiple restaurants and eateries, the number of dishes on the menu has been reduced by 50% due to the drop in customers.

A representative of a major egg supplying firm in HCMC pointed out that the falling demand for eggs has prompted the firm to offer a 50% discount to manage its inventory.

 

Aside from disrupting the daily activities of local residents, Covid-19 has paralyzed the tourism, retail, trade and transport sectors in Vietnam.

Speaking at a meeting with the HCMC Department of Industry and Trade last week, some representatives of business associations highlighted an array of difficulties facing enterprises active in the food, apparel, rubber and plastics sectors due to the fallout from the virus.

Ly Kim Chi, chairwoman of the HCMC Food and Foodstuff Association, noted that many firms have seen a drop in revenue, so they are in need of the city’s support in extending debt payment deadlines. Chi also proposed offering a tax exemption to those affected heavily by the virus.

The tourism sector has been the hardest hit by the coronavirus. Many Dalat-based hotels have seen their customers canceling room bookings out of fear of the deadly virus.

An entrepreneur in HCMC managing a hotel in Dalat City stated that the hotel has received multiple room cancellations as a result of rising concerns over coronavirus infections.

Nguyen Thi Nguyen, director of the Lam Dong Department of Culture, Sports and Tourism, told the Lam Dong Online newspaper that since the end of the Tet holiday, the number of room cancellations has risen to over 10,000. These statistics were collected at 14 three- to five-star hotels in the province.

Various tourist destinations in Nha Trang City and Phu Quoc Island, which depend heavily on the Chinese source market, are also struggling with the impact of the coronavirus. SGT

Le Hoang

COVID-19 highlights need for economic restructuring

COVID-19 highlights need for economic restructuring

The respiratory epidemic caused by the novel coronavirus (COVID-19) has highlighted an urgent need for Vietnam to boost its economic restructuring and diversify its markets.  

Vietnam’s economy in ‘coronavirus whirlwind’

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