COVID-19 impact puts businesses in fight for survival

COVID-19 impact puts businesses in fight for survival

Despite this tough economic picture, the country’s seafood exports have successfully enjoyed a rapid recovery due to the confidence of investors, importers, and retailers for Vietnamese seafood to grow significantly over time, according to Truong Dinh Hoe, General Secretary of Vietnam Association of Seafood Exporters and Producers (VASEP).

Hoe went on to express that while other seafood exporters have encountered numerous challenges as a result of the pandemic, the country has begun to recover production moving into the post-pandemic period as a means of maintaining seafood supply sources for the world, noting that this has also created a range of opportunities for Vietnamese seafood in the near future.

In addition, the nation’s supply chain of essential materials for aquaculture and processing have not been dependent on the Chinese market.

According to Hoe, a shift in production from China to Vietnam will begin to emerge, especially due to the lasting effects of the ongoing trade war between the United States and China trade war, along with the COVID-19 pandemic, with demand for aquatic products expected to increase sharply ahead in the post-pandemic period.

Recent times have seen the apparel and garment industry overcome plenty of challenges caused by the COVID-19 by shifting production to medical equipment such as protection gear and face masks, therefore helping to generate jobs for local workers.

Nguyen Triet, a representative of a local textile firm based in Hai Duong province that exports products to the US market, said that the company has been able to maintain signed orders and has created stable jobs for 300 employees, whilst trying to negotiate with partners not to cancel contracts for new orders.

Amid numerous difficulties, firms have been striving to seek new markets and secure orders while pining their hopes that consumption demand will pick up with more export orders in the post-pandemic period, Triet added.

With a market of nearly 100 million people, there remains plenty of room ahead for the consumption of local products amid the complicated nature of the COVID-19 pandemic globally.

Vu Quoc Vuong, director of Dong Ky Wood Investment and Development Joint Stock Company cum Chairman of Dong Ky Fine Arts Wood Association, said several countries have moved to impose lockdowns and have sealed their borders due to the pandemic, causing great difficulties for import and export activities.

Vuong elaborated that the company and its members have been active within the domestic market, making improvements in terms of design, approaching customers, persifying products to maintain production, and creating jobs for workers in order to overcome the challenging time.

Hoang Duc Vuong, General Director of Vinh Thanh Joint Stock Company, said that numerous manufacturing and export firms are facing difficulties, especially with regard to the plastic industry.

He noted that plastic exports now account for between 60% and 70% of business, with the domestic market becoming an alternative option for local businesses in which to overcome disruption in the global production chain as a result of the COVID-19.

Most notably, when the Government's economic support packages are deployed and public investment disbursement is strengthened, these moves ultimately create fresh impetus for the gradual recovery of enterprises, Vuong emphasised.

Dr. Nguyen Minh Phong, an economic expert, pointed that the domestic market of nearly 100 million people can act as a magnet for local firms in the near future, noting that businesses must ensure the quality of goods, enhance their processing stages, improve their designs, reduce prices, and increase incentives for customers.