illustrative image
Statistics from the Ministry of Planning and Investment show that 79,673 firms suspended operation in Vietnam in the first seven months, an increase of 23% compared to the same period in 2020. Of which 23,000 firms are in HCM City.
"The agriculture, forestry, and fishing is the spearhead industry in the Mekong Delta. The products must be harvested but then there is no storage. If this situation continues, we'll lose raw material areas and will take a long time to recover," Lam said.
Firms said they had had many difficulties due to the lack of co-operation between local authorities since the 13 provinces have 13 different policies and rules. The stay-at-work model is too expensive and ineffective while governmental support has not been forthcoming fast enough. Most firms are operating at 20-30% of their capacity. Many firms have to accept losses to maintain business.
Many firms want better processes to transport goods between provinces and cities, financial policies to boost businesses when the social distancing period ends.
Pham Binh An, deputy head of the Ho Chi Minh City Institute for Development Studies said the problem was at what time would social distancing end and what firms have to prepare. It is likely that they would have to live with Covid-19 when the population is fully vaccinated and the government has suitable plans.
"The goal is to control the outbreak after September 15 but no one can tell if social distancing will be lifted after September 15," An said.
A third-quarter survey conducted by the Vietnam Chamber of Commerce and Industry in Can Tho showed local firms had a very negative outlook. 40% of surveyed firms said that their revenue will continue to drop and 40% said access to raw materials would be more difficult. Tran Khac Tam, head of Soc Trang Business Association also said there would still be difficulties until the middle of the final quarter.
