High vulnerability rate of businesses in Covid-19 expected

The human mortality rate due to Covid-19 is 3.4 percent worldwide. For businesses, the vulnerability rate is believed to be much higher.

A survey conducted by the Research Committee for Private Economic Development, or Committee IV, belonging to the Advisory Council for Administrative Procedure Reform where Minister and Chief of the Government Office Mai Tien Dung is the chair, found that up to 98.2 percent of businesses will be adversely affected by Covid-19.

High vulnerability rate of businesses in Covid-19 expected



Committee IV conducted the survey on 1,200 businesses. Seventy five percent of them were small enterprises with less than 100 workers, while 14.3 percent of them had more than 200 workers.

The businesses in the tourism sector (accommodation and eatery services) accounted for 29 percent of total businesses answering the questionnaire. Meanwhile, the businesses in the processing and manufacturing industry accounted for 20 percent and education and training 7 percent.

This shows the serious and prompt effects of Covid-19 to the tourism, manufacturing and processing and education and training sectors. The serious influences made the enterprises in the sectors participate in the survey and made proposals to help them overcome difficulties.

If the epidemic lasts six months, more than 60 percent of businesses would see revenue decrease by over 50 percent, while 29 percent of businesses would see revenue decrease by 20-50 percent. Only 1.8 percent of businesses said the epidemic has had positive influences on their revenue.

If the epidemic lasts six months, more than 60 percent of businesses would see revenue decrease by over 50 percent, while 29 percent of businesses would see revenue decrease by 20-50 percent. Only 1.8 percent of businesses said the epidemic has had positive influences on their revenue.

 


The enterprises that are seeing revenue increasing are the ones that make materials domestically.

If compared with figures about the toll updated by the Ministry of Health as of March 5, the effects of Covid-19 on businesses are high.

According to the Vietnam Infectious Disease Monitoring System, there have been 95,413 Covid-19 cases in the world, including 3,285 deaths. This means the mortality rate of 3.4 percent.

Meanwhile, 73.8 percent of polled businesses said they will go bankrupt if the epidemic lasts more than six months.

The General Statistics Office (GSO) reported that the number of businesses which suspended operation for definite time, stopped operation to follow procedures for dissolution, and fulfilled the procedures for dissolution soared to 28,400 in the first two months of the year.

In Vietnam, the number of SARS-CoV-2 infection cases accounted for 0.001 per thousand of the population by March 6, while 98 percent of businesses said they have felt adverse effects from the epidemic.

According to CDC, more than 80 percent of Covid-19 infection cases had mild symptoms of disease, while 9.2 percent of businesses said they bear little impact from the disease.

Fewer than 20 percent of Covid-19 patients became severely ill. The number of businesses suffering heavily from Covid-19 is up to 89.1 percent.

Kim Chi 

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