Prime Minister Nguyen Xuan Phuc (third from left) in a meeting with Vietnamese entrepreneurs in Hanoi (Photo: chinhphu.vn) Hanoi (VNS/VNA) - The COVID-19 pandemic has been a test forVietnamese businesses as many have been and will be struggling to recover forthe foreseeable future. Those who emerge from the crisis will have proven theirmettle by overcoming an unprecedented and difficult time, said businessleaders.
No sector has been hit harder than tourism. Hotels and resorts across thecountry, which were often bustling with tourists, have seen the number ofvisitors drop by as much as 90 percent since strict travel measures were put inplace by the world's governments to contain the spread of the virus. Despiterecent efforts to tap into local demand, the sector simply could not make upfor the sudden loss of foreign visitors.
Nguyen Manh Cuong, CEO of a local tourism company, said many firms, hisincluded, have been biding their time in the hope of a strong recovery once thepandemic is under control.
"We cannot do it alone without support from the central government andtourism authorities, though," he said.
Other sectors have also been experiencing one of the worst declines since the1997 Asian financial crisis.
Nguyen Quoc Hiep, CEO of a property investment firm, said demand for propertieshas never been lower with firms reporting just a quarter or less of their usualsales figure compared to the same period of 2019.
"We knew we were heading for choppy waters but nobody expected this. It'snot an overstatement to say we wasted eight months of 2020 with nothing to showfor it. It is now impossible to meet our yearly sales targets," Hiep said.
Even traditionally strong industries such as textiles and footwear have notbeen exempted. Sharp falls in demand and order cancellations from internationalbuyers have resulted in major disruptions with firms forced to lay off workersor reduce working hours.
Phan Minh Chinh, chairman of sportswear maker Pro-Sport, said the pandemic hasforced textile firms to switch their production to short-term and lesssustainable products such as masks and PPE suits.
"These orders are not bringing in a lot of money anymore but they allow usto keep our workshops open and our workers employed," said Chinh.
Chinh, Hiep and Cuong said the most important objective right now for theirfirms is to stay alive and make sure they could keep their workers for apost-pandemic comeback.
Silver lining
As the pandemic continues to ravage the economy, firms have started to adaptand even find opportunities to innovate and grow.
With the population mostly wary about heading out, businesses have been findingways to connect with customers from the safety and comfort of their homes.According to a report by market research company International Data Corporation(IDC), over 70 percent of Vietnamese small-to-medium-sized enterprises haveramped up on the digitalisation front to reach their customers in the last ninemonths of 2020.
E-wallet MoMo said the company has provided thousands of small businesses fromdepartment stores to food vendors with a digital platform to stay connectedwith consumers. The company said since the pandemic the growth of its e-walletbusiness has doubled compared to the previous year.
The IDC's report claimed said firms, once fully digitalised, may contribute upto 30 billion USD to the country's GDP by 2024.
Becamex, one of the largest investment and industrial development firms in thecountry, said it has been working on a digitalisation strategy for years.Disruptions caused by the pandemic have provided the corporation with enoughreason and motivation to finally implement it. After a few months, Becamex'sinternal reports have shown reduced business expenses, up to 50 percent in someareas, and significant improvement in business and time management.
Tran Hai Linh, CEO of e-commerce firm Sendo, said the massive increase inonline shopping and e-commercial activities presented tech firms with a uniqueopportunity to develop big data and machine learning technologies at such aspeed it will accelerate the process by two to three years.
Nguyen Quoc Ky, chairman of Vietravel, said it's up to business leaders torecognise opportunities in times of crisis but for that to happen they mustmaintain a positive outlook and always be on the hunt for new ideas.
In a letter to the business community released on Tuesday, October 13 – VietnamEntrepreneurs' Day - Prime Minister Nguyen Xuan Phuc said the Government of Vietnamwill stand shoulder to shoulder with the business sector and entrepreneurs byimplementing support packages and policies to provide a boost for businesses toquickly get back on their feet.
The Government leader said the pandemic is a test for the business sector andbusiness leaders must try "twice or thrice as hard to overcome it".
Vietnam reported 2.12 percent growth for the first nine months of the year, arare success story in the time of COVID-19, through significant tax cuts andfees for businesses while at the same time implementing administrative reformsand speeding up of e-government building./.
VNA
