Nearly 74 percent of firms to go bankrupt if epidemic lingers: survey

If the epidemic of the acute respiratory disease caused by the SARS-CoV-2 (COVID-19) lasts for more than six months, it may cause up to 73.8 percent of the firms to go bankrupt, a recent survey finds.

Nearly 74 percent of firms to go bankrupt if epidemic lingers: survey hinh anh 1

The findings of the survey, conducted with the participation of more than 1,200 firms from March 2-3, were recently released by the commission on the study on the private economic development under the advisory council on administrative procedure reform of the Prime Minister. Three quarters of the firms surveyed are of a small scale, each employing less than 100 workhands.

Up to 98.2 percent of the firms said they are undergoing negative impact of the epidemic, while only 9.2 percent said the impact would be light on them.

It is also noteworthy that 19 percent of the firms said they have found out any measure to sustain the negative impact, while 7.2 percent said they will actively search for new markets, 2.4 percent raise service quality, and 1.7 percent to take this time to retrain their workers.

The survey also finds that the firms totally support and highly value the measures taken by authorities in the fight against the epidemic to ensure safety for the people.

The firms raise three proposals to the government to help them ease the difficulties caused by the epidemic, namely working out exclusive preferential policies for firms heavily affected in terms of taxes, providing concessional loans and reducing loan interests.

MoIT will continue support for businesses after epidemic: Minister

The Ministry of Industry and Trade (MoIT) will continue to support local businesses after the coronavirus epidemic is stamped out, Minister Tran Tuan Anh has said.

Anh made the statement after visits to the Ha Tay Chemical-Weave Co. Ltd. and the Garment 10 Corporation on March 5 in Hanoi to study difficulties at local businesses during the novel coronavirus (COVID-19) epidemic.

If the epidemic is controlled in the second quarter, local businesses should take advantage from Q3 at home and abroad and focus resources to resume their business, he said.

 

The minister added that the ministry would work to create favourable conditions for local firms.

Since the coronavirus outbreak started, the ministry had evaluated the impacts of the disease on Vietnam's economic and trade activities and had proposed solutions to other Government bodies to help businesses, he said.

During the minsiter’s visit to Garment 10 Corporation, Than Duc Viet, the company's general director, said the corporation’s major products were shirts, suits and trousers. The epidemic had caused a lack of raw material for those products.

This had led to an interruption in production, he said. Therefore, the corporation’s total revenue this year was expected to fall by 10 percent against last year while revenue in the first quarter was also estimated to drop by 10 percent year-on-year.

Nguyen Thanh Tung, general director of the Ha Tay Chemical-Weave Co, Ltd, said his company’s main products were vulcanised shoes with a localisation rate of more than 70 percent, with the remaining raw materials imported mainly from China. The epidemic had forced the company to seek other suppliers at home and abroad.

If the epidemic was prolonged, the firm might run out of material for production, he said.

The minister said, in the long term, Vietnam needed to develop the support industry for the textile, garment, leather and footwear industries. Local enterprises could not depend solely on raw material imports./.VNA

How many ‘crony’ businesses exist?

How many ‘crony’ businesses exist?

A VCCI (Vietnam Chamber of Commerce and Industry) report released in late 2019 showed that the privileges to ‘crony’ businesses have decreased, but not enough to ensure equal competition among businesses.

Business searches for confidence upswing

Business searches for confidence upswing

Despite the novel coronavirus outbreak slashing Vietnam’s business confidence, experts are still optimistic for the remainder of 2020.

 
 

Other News

.
Vietnam emerges as the world’s No2 rice exporter
Vietnam emerges as the world’s No2 rice exporter
BUSINESSicon  27/07/2020 

Vietnam has beaten Thailand to become the second biggest rice exporter in the world after the latter decided to slash rice exports due to prolonged drought and strong baht.

Competitive power market still afar
Competitive power market still afar
BUSINESSicon  27/07/2020 

There are three criteria for assessing goods and services— including prices, quality and customer service. 

Standardization for agro-value chain
Standardization for agro-value chain
BUSINESSicon  27/07/2020 

When it officially takes effect, the EU-Vietnam Free Trade Agreement (EVFTA) will have a positive impact on promoting Vietnam’s exports, especially agro-products, to the EU.

Downhill likely after climax
Downhill likely after climax
BUSINESSicon  27/07/2020 

Rice is a rare spotlight in Vietnam’s agro-product exports in the first half of this year. However, the good performance may not be maintained in the second half of the year.

Vietnam imposes tariffs on foreign plastic film
Vietnam imposes tariffs on foreign plastic film
BUSINESSicon  26/07/2020 

The ministry of Industry and Trade (MoIT) has applied anti-dumping measures on some products with biaxially oriented polypropylene (BOPP) film originating from China, Thailand and Malaysia.

Improved quality and higher demand boost Vietnam rice export outlook
Improved quality and higher demand boost Vietnam rice export outlook
BUSINESSicon  27/07/2020 

In the first half of this year, rice export value jumped 18.6% year-on-year to US$1.71 billion.

Vietnam urged to be cautious about Chinese investment
Vietnam urged to be cautious about Chinese investment
BUSINESSicon  27/07/2020 

Growing Chinese investment to Vietnam could turn the Southeast Asian country into a transshipment point for China to reroute its exports to a third country.

Vietnam gov’t to offer extraordinary incentives for high-impact FDI projects
Vietnam gov’t to offer extraordinary incentives for high-impact FDI projects
BUSINESSicon  26/07/2020 

By fulfiling certain criteria, some foreign investors would receive special treatment, said Minister of Planning and Investment Nguyen Chi Dung.

Australian firm alleged of transfer pricing worth over US$116 million
Australian firm alleged of transfer pricing worth over US$116 million
BUSINESSicon  26/07/2020 

The State Audit Office of Vietnam requested the police to investigate the case.

Vietnam construction industry stays positive during Covid-19
Vietnam construction industry stays positive during Covid-19
BUSINESSicon  26/07/2020 

The construction industry grew 4.5% year-on-year during the first six months of 2020, which was higher than the GDP growth rate of 1.8%.

EC allows Vietnamese exporters to extend deadline of REX applications
EC allows Vietnamese exporters to extend deadline of REX applications
BUSINESSicon  26/07/2020 

The European Commission (EC) has given the green light for Vietnam’s exporters to extend the deadline of applying for the registered exporter system (REX) until late 2020, 

Southern Vietnamese real estate market: emergence of large M&A deals
Southern Vietnamese real estate market: emergence of large M&A deals
BUSINESSicon  26/07/2020 

The southern real estate market has witnessed a series of impressive mergers and acquisitions (M&A) deals. This trend is expected to be more vibrant in the near future. 

E-wallet providers ask to extend deadline of verification
E-wallet providers ask to extend deadline of verification
BUSINESSicon  26/07/2020 

 E-wallet service providers want to extend the deadline for users to complete identity verification.

Ministry launches PayGov to upgrade national public portal
Ministry launches PayGov to upgrade national public portal
BUSINESSicon  26/07/2020 

The Ministry of Information and Communications (MIC) launched a national payment support gateway (PayGov) yesterday in Ha Noi in the latest move to boost e-government in Vietnam.

Pandemic ravages household businesses and MSMEs: survey
Pandemic ravages household businesses and MSMEs: survey
BUSINESSicon  26/07/2020 

The COVID-19 pandemic has substantially reduced revenue for both household businesses (HBs) and micro, small and medium enterprises (MSMEs), 

Japanese firms choose Viet Nam for production expansion
Japanese firms choose Viet Nam for production expansion
BUSINESSicon  26/07/2020 

Fifteen Japanese firms chose Vietnam as the destination for their production expansion within the Japanese government’s programme to support Japanese firms to diversify their value chains in foreign countries, according to JETRO.

Vietnam Banks Association urges MIC to reduce telecommunication charges
Vietnam Banks Association urges MIC to reduce telecommunication charges
BUSINESSicon  26/07/2020 

The Vietnam Banks Association has just sent a dispatch to propose the Ministry of Information and Communications lower charges for banking services via SMS.

R&D spending key to join global supply chain: executives
R&D spending key to join global supply chain: executives
BUSINESSicon  25/07/2020 

Challenges will overwhelm opportunities for Vietnamese part suppliers if they are unable to find ways to upgrade technology and meet international production standards, business executives said on July 24.

Vietnam likely to export 6.7 million tonnes of rice this year
Vietnam likely to export 6.7 million tonnes of rice this year
BUSINESSicon  25/07/2020 

Vietnam is likely to reach its rice export target of 6.7 million tonnes this year thanks to favourable market conditions and high global demand, according to the Ministry of Agriculture and Rural Development.

Korean multinationals suggest solutions to ease difficulties in Covid-19
Korean multinationals suggest solutions to ease difficulties in Covid-19
BUSINESSicon  27/07/2020 

Vietnam Airlines’ airplanes which have been left idle because of Covid-19 could be used to carry cargo, offering benefits to both the air carrier and export companies.

 
 
 
Leave your comment on an article

OR QUICK LOGIN