Enterprises face difficulties amid COVID-19 pandemic

Checking body temperature at the Hagimex Company (Photo: Vietnamplus)

Hanoi (VNA) - Most of enterprises are trying hard to overcome the difficulties caused by the COVID-19 pandemic, yet the enterprises owners worry about worse scenarios await with the spread of the COVID-19 virus.

The Viet Xanh Agricultural Products Processing Company, based in Ninh Binh province is running at full capacity. Nguyen Truong Nghia, Chairman of the Executive Board of the company is most concerned about the awareness of COVID-19 prevention among workers.

Viet Xanh Agricultural Products Processing Company has sent a letter to its partners, commiting to its orders under the signed contract amid COVID-19 pandemic. It also mentioned the scenarios where the company would close and stop production if any inhouse COVID-19 infection case.

Meanwhile,  the Hagimex JSC. in Ha Nam province has soon deployed measures to prevent the spread of COVID-19 virus by allowing employees to work online either from home or an office under quarantine scenarios.

Director of the Hagimex JSC Nguyen Tien Anh, said “We store food and essentials goods, just in case. We also work in shifts to ensure smooth run of the business.”

A farmer takes his turmeric to the Bac Kan Agricultural Processing Company (Photo: Vietnamplus)

A farmer takes his turmeric to the Bac Kan Agricultural Processing Company (Photo: Vietnamplus)

Anh worried about orders cancelled because many markets of his partners are impacted by the pandemic, such as the Republic of Korea, the European and American markets.

Likewise, the main revenue of the Bac Kan Agricultural Products Company comes from online sale when the supermarket network was severely affected, according to Le Thi Huong, Deputy Director of the company.

Meanwhile, Vina Samex JSC, processing and exporting materials to cambat flu, such as star anise flowers, has received more purchase orders amid COVID-19 pandemic. However, the company also faced difficulties as the cost of shipment and storage in foreign ports surges, particularly in the Europe. The company is under financial pressures as it has to pay farmers.

The Vietnam Pepper Company also shared the same difficulties as it had its shipments quarantined in the US, leading to delayed payments.

Similarly, the Developing Agriculture and Consulting Environment Company (DACE) had up to 40 percent of its products stuck in the store due to the pandemic. DACE not only faces fanancial difficulties but also lack of storage space problem, saidTran Van Hieu, DACE Director.

The situation can be worse in the second quarter because it is the harvest time and the company still has to buy products from farmers, Hieu said.

Recently, banks have announced credit packages with low interest rates to support businesses to overcome difficulties in the epidemic, however, Hieu said that the company has not received any official notices from banks on interest rate support and disbursement procedures. Most recently, the company still had to borrow bank loans at the interest rate of 9% -10 for loans with collaterals.

The Van Phan Dien Chau Seafood Company in Nghe An province decided to halt operation on April 1.

The Van Phan company produces fish sauce but face input material shortages due to fishermen unable to fishing amid the COVID-19 pandemic. 70 out of 100 its employees were made redundant, while the rest have their salary halved.

Dai Thuan Thien company closes its factory on April 1 due to lack of COVID-19 pandemic. (Photo: Vietnamplus)

Dai Thuan Thien company closes its factory on April 1 due to lack of COVID-19 pandemic. (Photo: VNA)

Nguyen Hoang Cung - Business Director of the Dai Thuan Thien Company, said his company had to stop buying agricultural products and refused orders from Ho Chi Minh City to Hanoi between April 1-15. The company also plans to make staff redandunt and only keep the elite ones. It will also reduce distribution to stores while promoting the supermarket channels and exports.

Vietnamese businesses are facing numerous challenges in this period. However, according to financial experts, they will need to focus more on cash flow to ensure their operation in long term./.