WHAT'S NEW

Struggling production in need of further support

by NDO10 August 2021 Last updated at 14:00 PM

The business community is now bogged down in difficulties and in need of greater support from the state
The business community is now bogged down in difficulties and in need of greater support from the state

VTV.vn - The health crisis is sabotaging domestic production, with the business community now in critical need of further support. The government has been urged to offer more effective remedies to succour enterprises and labourers.

Over the past few months, Samsung Electronics from the Republic of Korea (ROK) has been facing production difficulties at its home appliance manufacturing facility in Ho Chi Minh City.

The latest wave of COVID-19 has driven not only Samsung into suspended operations, but also many other businesses in the city.

It has been reported that Samsung's operating rate at its home appliance manufacturing facility in Ho Chi Minh City has fallen below 40% due to the pandemic.

Employing as many as 7,000 workers, the facility manufactures TVs and monitors, and home appliances such as vacuum cleaners and washing machines.

Hong Sun, vice chairman of the Korea Chamber of Business in Vietnam, said that the over 9,300 ROK enterprises in Vietnam employing over one million workers have been hurt by the pandemic, with untold losses.

"I think the situation may be worse if COVID-19 continues without any boost in vaccination," Sun said.

Minister of Planning and Investment Nguyen Chi Dung commented that Vietnam currently has 870,000 operational businesses, of which about 97% are small and medium-sized enterprises, with very low competitiveness and capacity.

"Meanwhile, their supply chains are being disrupted and their orders and output have also been slashed," Dung said. "Also, their production costs are highly rising due to a big hike in prices of input materials and logistics services. Notably, they are now having to pay more money for preventing COVID-19."

According to the minister, many enterprises are now facing risks of insolvency and halted operations. In 2020, the rate of businesses with profits was 33.86%.

In the first seven months of 2021, the pandemic forced about 79,700 enterprises, both local and foreign ones, to halt performance and completed procedures for dissolution, up 25.5% year-on-year. On average, nearly 11,400 enterprises left the market every month.

At an online conference on August 8 between the government and representatives from enterprises, business associations, and localities across the country on solutions to help weather the storm

Tags:

Top VND Exchange Rates

Auto-refesh 15m

USD

EUR

AUD
1 VND
Inverse:
0.00004
22,510.0
0.00004
25,226.0
0.00006
15,674.0

Mid-market rates: 2021-12-03 02:29 UTC

WEATHER FORECAST