Enterprises in supporting industries busy with orders during COVID-19

While other industries complain about the lack of jobs, enterprises in supporting industries have been operating at full capacity to satisfy a high number of orders.

Great opportunities

Amid widespread job losses, hundreds of workers at An Phat Industrial Engineering Co Ltd in Dong Nai have had to work overtime to implement orders from partners.

Enterprises in supporting industries busy with orders during COVID-19



“We have to expand production capacity to be able to deliver products on schedule,” An Phat’s CEO Nguyen Hoa An said.

An Phat is one of thousands of enterprises in the supporting industries in the eastern part of the southern region that have seen numbers of orders increasing rapidly since the epidemic outbreak.

Since FIEs cannot import components when other countries apply measures to prevent the coronavirus spread, they have had to seek domestic supply sources.

According to the Binh Duong provincial Department of Industry and Trade, some woodwork, electromechanical and ceramic enterprises in the province have enough orders until Q2, and their input materials are large enough to maintain production until May.

Kim Vinh Thang Co Ltd in Bien Hoa 1 Industrial Zone also reported an increase in orders.

 


“We just had a working session with Japanese partners and found that the demand for components from them is very high. We can expect more orders in the time to come,” said Kim Vinh Thang’s CEO Phan Van Tu.

According to the Binh Duong provincial Department of Industry and Trade, some woodwork, electromechanical and ceramic enterprises in the province have enough orders until Q2, and their input materials are large enough to maintain production until May.

Le Tri Minh, head of the Dong Nai provincial association of enterprises in supporting industries, confirmed that the number of orders has increased by 30-40 percent compared with the same period last year. Most orders are from FIEs.

Minh said FIEs lack components for manufacturing because of the restrictions in importing products from China. Meanwhile, foreign experts working for FIEs cannot come to Vietnam to supervise production. Therefore, FIEs decided to place orders with domestic enterprises.

Worries

Though more opportunities are coming, Vietnamese enterprises fear they will miss them because of the lack of input materials.

“We need to import some specific steel and iron products. It’s OK now, but if the epidemic lasts one or two more months, material supply will be short,” Tu of Kim Vinh Thang said.

Vietnam has now become more aware of the importance of domestic supplies and the need for development of domestic supporting industries.

According to Tran Duc Dan, director of Casum Shoes JSC in Bien Hoa City, previously, shoes companies had to import 80-90 percent of materials, but now they have to import 60-70 percent of materials. The localization ratio is up to two thirds for some products.

Thanh Lich 

Vietnam businesses eyed by foreign investors

Vietnam businesses eyed by foreign investors

Instead of following procedures to become nvestors, foreign enterprises are preferring to ‘take a shortcut’ by taking over Vietnamese businesses, which allows them to penetrate the market more quickly.

Small businesses change business models to survive pandemic

Small businesses change business models to survive pandemic

Seeking new markets, making new products and following new business thinking are actions now being taken by Vietnam’s businesses to overcome current difficulties.

 
 

Other News

.
BOT toll fee hike to increase costs for VN logistics firms
BOT toll fee hike to increase costs for VN logistics firms
BUSINESSicon  23/05/2020 

The Ministry of Transport’s (MOT) proposal to increase the BOT toll fees has faced strong opposition from logistics firms.

Demand for ready-built factories and warehouses increasing: CBRE
Demand for ready-built factories and warehouses increasing: CBRE
BUSINESSicon  23/05/2020 

The development of e-commerce together with delays to import and export activities due to disrupted logistics services has accelerated demand for ready-built factories and warehouses during the COVID-19 outbreak in Viet Nam.

Vietnam ready for new investment influx
Vietnam ready for new investment influx
BUSINESSicon  23/05/2020 

Foreign investors are speeding up the restructuring and reallocation of their production networks globally, with Vietnam considered a bright candidate for investment given its location within the world’s most dynamically-developing region.

S&P maintains stable outlook for Vietnam’s sovereign credit rating
S&P maintains stable outlook for Vietnam’s sovereign credit rating
BUSINESSicon  23/05/2020 

S&P Global Ratings has announced it has retained Vietnam’s sovereign credit rating at BB, with a stable outlook, according to the Ministry of Finance.

Covid-19 resets operational mode of VN retail market
Covid-19 resets operational mode of VN retail market
BUSINESSicon  23/05/2020 

Revenue from e-commerce has increased rapidly during Covid-19, but many traditional retailers have had to give back business premises to landlords.

BUSINESS NEWS HEADLINES MAY 23
BUSINESS NEWS HEADLINES MAY 23
BUSINESSicon  23/05/2020 

Hanoi drafts FDI attraction strategy in next decade to boost productivity

Weak growth outlook to spur further monetary easing in Vietnam: Fitch Solutions
Weak growth outlook to spur further monetary easing in Vietnam: Fitch Solutions
BUSINESSicon  22/05/2020 

Given the weak economic outlook in Vietnam, Fitch Solutions expects further easing measures to be applied over the rest of 2020 as the country is still targeting real gross domestic product (GDP) growth above 5%.

Many hotels in HCMC priced too high for sale
Many hotels in HCMC priced too high for sale
BUSINESSicon  22/05/2020 

Many hotel owners in HCMC are putting their properties on sale due to the tourism decline inflicted by the coronavirus pandemic but at very high prices.

Agribusinesses rocked by twin negative impacts
Agribusinesses rocked by twin negative impacts
BUSINESSicon  22/05/2020 

In spite of several highlights, the agricultural picture remains gloomy due to twin blows of climate change and coronavirus.

EVFTA offers opportunities to Vietnam to diversify markets
EVFTA offers opportunities to Vietnam to diversify markets
BUSINESSicon  22/05/2020 

Analysts say that Vietnam will be able to ease reliance on some trade partners because of the EVFTA.

Online food purchases predicted to rule the roost post-pandemic
Online food purchases predicted to rule the roost post-pandemic
BUSINESSicon  22/05/2020 

The online food and grocery delivery segment has gained remarkable momentum after multiple platforms launched services for those stuck at home during social distancing.

Vietnam set to become shelter for foreign real estate investment post-COVID-19
Vietnam set to become shelter for foreign real estate investment post-COVID-19
BUSINESSicon  22/05/2020 

Big companies like Apple, Nintendo, and Samsung and their supplier have switched out to limit damage.

Telecom industry expects high growth in the next five years
Telecom industry expects high growth in the next five years
BUSINESSicon  22/05/2020 

Five sectors of telecoms, information and technology, clean agriculture, clean technologies, retail, healthcare and pharmaceuticals have potential for high growth in the next three years.

Repatriated citizens: high-quality human resources for post-Covid-19
Repatriated citizens: high-quality human resources for post-Covid-19
BUSINESSicon  22/05/2020 

The number of repatriated citizens in the post-Covid-19 period is expected to increase, which will put pressure on the labor force and social security.

Outstanding loans of twelve inefficient projects amount VND21 trillion
Outstanding loans of twelve inefficient projects amount VND21 trillion
BUSINESSicon  22/05/2020 

The outstanding loans of twelve inefficient projects under the Ministry of Industry and Trade totalled US$905 million as of the end of 2019, most were overdue, according to the Government’s report to the National Assembly.

Panasonic to move Thai-based production to Vietnam
Panasonic to move Thai-based production to Vietnam
BUSINESSicon  22/05/2020 

Japanese appliance-maker Panasonic on May 21 said that next year it will move its Thai-based production of refrigerators and washing machines to Vietnam, laying off some 800 workers.

Local air-conditioner brands join race for market share
Local air-conditioner brands join race for market share
BUSINESSicon  22/05/2020 

Vietnamese air conditioner manufacturers are increasingly using sophisticated technologies as they jostle for market share in a competitive market.

BUSINESS NEWS HEADLINES MAY 22
BUSINESS NEWS HEADLINES MAY 22
BUSINESSicon  22/05/2020 

Casinos still lack popularity in Vietnam

Shrimp exporters see bright future despite Covid-19
Shrimp exporters see bright future despite Covid-19
BUSINESSicon  22/05/2020 

Vietnam’s shrimp exportsin Q1 had export turnover of $660 million, a 2 percent increase compared with the same period last year, according to the General Department of Customs (GDC).

Vietnamese businesses ready to be connected with “avenue” EVFTA
Vietnamese businesses ready to be connected with “avenue” EVFTA
BUSINESSicon  22/05/2020 

Economic cooperation between Vietnam and the European Union (EU) is about to turn a new page in history as the Vietnamese National Assembly is moving very close to ratifying the EU-Vietnam Free Trade Agreement (EVFTA).

 
 
 
Leave your comment on an article

OR QUICK LOGIN