Vietnamese businesses on way to recovery after pandemic
Meta’s survey shows that small and medium enterprises (SMEs) in Vietnam are affected by the new Covid-19 strain, but optimistic signals are revealed.
As many as 20% of businesses globally closed, 3% higher than July 2021. The data is from Meta's survey of the situation of SMEs across 30 countries and territories in January 2022.
According to the survey, the increase in the number of closed businesses in January is small compared to the previously recorded fluctuations, but it also reflected the negative impact of the Omicron wave in the region.
In Vietnam, the new strain of Covid-19 also caused difficulties, when 75% of SMEs using Facebook said that they were maintaining operations or having revenue-generating activities, a 5% decrease compared to September 2021.
Although most businesses recorded a decline in revenue, the business situation showed signs of improvement. About 23% of SMEs reported sales growth year on year, up 6%. About 67% recorded a drop in revenue, down 9% from September 2021.
Many businesses were still concerned with the current business situation. Specifically, 42% worried about decreasing demand or lack of customers in the next few months. However, this number decreased compared to the figures recorded in September 2021.
Thanks to the improvement in business, the number of SMEs having to cut personnel decreased by 9% compared to September 2021, to 44%.
While social distancing measures are still in place due to the impact of the epidemic, the transition to an online model has become an inevitable trend for global businesses as well as Vietnamese businesses. Up to 59% of small and medium enterprises said that sales from online sales accounted for at least 25% of total revenue, up 13% compared to last September.
In addition to the efforts of Vietnamese small and medium enterprises to overcome difficulties, the significant improvement in the business situation and economic recovery in Vietnam has been achieved through the cooperation of relevant agencies. Around 9% of SMEs active on Facebook said they received financial support in the form of cash grants or loans from a government source since the start of the Covid-19 pandemic, demonstrating the efforts of Vietnam in accompanying and encouraging the business community to overcome difficulties caused by the pandemic.
In Meta's Asia Pacific survey, nearly half of the SMEs operating on Facebook said that at least 25% of revenue in January came from digital platforms.
However, they still aimed to operate on both the physical space and the digital platform. About 69% of businesses planned to work on both forms.
Many small and medium-sized enterprises (SMEs) plan to increase cross-border trade for their products via e-commerce platforms to promote exports in the context of the COVID-19 pandemic.
With the goal of turning digital technology into the input factor for production, MIC and 27 enterprises with excellent digital platforms have signed contracts to help SMEs go digital in 2022.