Businesses concerned as COVID-19 looms large

Survey from April 9 to 10, 2020 by CBRE with 180 participants based in Vietnam – PHOTO: CBRE VIETNAM

The results showed that the economic impact of the COVID-19 outbreak has weighed heavily on business sentiment in Vietnam, with 79% of respondents anticipating the business environment would deteriorate in the second half of 2020.

Some 43% of respondents anticipated a revenue contraction between 10-30% in 2020, and some 61% of respondents have not been offered relief measures from landlords.

The survey shows that 27% of respondents expected landlords to be more accommodating, as their businesses have been severely disrupted by COVID-19.

A broader survey, which reviewed occupiers’ opinions in the Asia-Pacific region, found that the retail industry was significantly impacted by the disease, with many stores suspending their expansion plans. Such delays in rental decisions will have a lasting impact on the following months.

However, 24% of participants in the region still expected revenue growth in 2020, of which the information technology industry is the most optimistic.

“There will be many new trends in business continuity planning that occupiers will focus on in the coming time. Companies are now more aware of the importance of evaluating and developing effective office use/allocation strategies,” said Thanh Pham, associate director of CBRE Vietnam.

She went on to say that the application of technology will be a leading factor in various industries, including the technology industry. More than half of occupiers in the finance and banking sector are considering splitting up their teams across multiple buildings.