HCM City businesses eager to resume, but regulation, worker availability worries linger

HCM City businesses are eager and preparing to reopen after months of closure due to stringent social distancing orders, but continue to face challenges from tough regulations and staff shortages.

A business based in HCM City’s Saigon Hi-tech Park arranges accommodation for workers to ensure it can sustain production. Businesses in the city are eager to resume production after September 30, focusing on digital transformation to adapt to life after the pandemic. – Photo baotintuc.vn

HCM City businesses are eager and preparing to reopen after months of closure due to stringent social distancing orders, but continue to face challenges from tough regulations and staff shortages.

HCM City, the country’s COVID-19 epicentre, is focusing on gradually reopening while also ensuring safety, and its strict preventive measures are expected to be relaxed after September 30 if the outbreak is under control.

Lê Duy Toàn, director of Duy Anh Foods Import Export Co. Ltd, said his company had been closed since mid-July and had to postponeexport orders.

Businesses are struggling after having to temporarily close down or meet the expenses of employees’ accommodation, food and COVID tests while also limiting production, he said.

“If the city does not reopen, the situation will worsen in the coming months,” he told Việt Nam News.

“I would like nothing more than for my business to be able to resume production after September 30.”

Phạm Thị Kim Hằng, founder of environment - friendly products supplier Limart – Zero Waste, told Việt Nam News her shop had to close down but still pay staff wages.

It also lost customers since it was unable to deliver online orders, though recently it had been able to resume deliveries after the city eased some travel restrictions.

Dr Trần Hoàng Ngân, director of the HCM City Institute for Research and Development, said the city could not enforce strict social distancing orders forever and would have instead to adapt to the pandemic.

Trần Việt Anh, chairman of Thủ Đức City Business Association, said especially export businesses in key fields such as textile and garment and electronics need to resume operations quickly to not lose customers to foreign competitors.

Opportunities for recovery

Trịnh Tiến Dũng, general director of Đại Dũng Metallic Manufacture Construction and Trade Corporation, said there were a lot of opportunities for businesses returning to the market, but they would have to change their management and operations.

His company, which incurred heavy losses last year, had been investing in new sectors and focusing on digital transformation and risk management to continue doing business with overseas customers, enabling it to continue operations despite the COVID difficulties, he said.

Hằng’s business is also focusing on launching applications as part of digital transformation to improve its online activities so that it can operate efficiently amid the pandemic.

Many businesses, especially retailers, also prioritise vaccination against COVID, and their staff have received two shots.

They also have safety equipment and comply with safety regulations.

HCM City’s Steering Committee for Pandemic Prevention and Control has issued a set of safety criteria for businesses, including requirements such as COVID-19 green cards for staff to certify their immunity and social distancing at the workplace.

Businesses need to assess their preparedness and notify local authorities, who will inspect and evaluate them before permitting resumption.

The HCM City Power Corporation will offer electricity at a discount to businesses to help them recover.

Problems with returning

Many businesses are concerned with some of the requirements.

For instance, they have to test their staff every seven days and those considered high-risk, every three days.

“The cost of COVID-19 tests for staff is a large burden and many businesses are worrying about it, not just mine,” Toàn of Duy Anh Foods said, hoping for more favourable policies regarding it.

However, he said that when his business could resume operations, personnel would be a problem since a number of employees had returned to their home provinces, and that it would have to plan its future production activities accordingly.

Other businesses that have been having workers live on-site are seeing them getting fatigued and wanting to go home.

Toàn hoped the city would soon announce specific plans and schedules for reopening its economy after September 30 since businesses would need time to make preparations to resume.

Hằng said not many people could get green cards since they had yet to receive their second shots.

“Resuming operations while the pandemic is still not completely under control can also negatively affect workers’ morale since they are still afraid and may be reluctant to return to work.”

Nevertheless, businesses are in agreement that all their staff should have green cards since it would mitigate the risk of disease spread and reassure people working in proximity to one another.

Businesses have also asked for tax breaks and low-interest loans to help them recover.

Hằng said: “Policies from the State to assist businesses in whatever way is very necessary now since for the past few months us small to medium-sized businesses have been incurring heavy losses. Activities to stimulate sales will be needed.”

Phạm Đức Hải, deputy head of the city Steering Committee for Pandemic Prevention and Control, said authorities would consider subsidising the high COVID test fees. – VNS

Source: VNA
vietnamnews.vn

Related News

Businesses need support from vietnamese representative offices abroad

Businesses need support from vietnamese representative offices abroad

VCN - Several heads of Vietnamese representative offices abroad believe that Vietnamese businesses need to prepare solutions to respond to the changing global economy and meet the increasing demands of the international market.
What do businesses need for digital transformation?

What do businesses need for digital transformation?

VCN - According to experts, to support businesses in successful digital transformation, the state needs to complete the policy framework and testing mechanism (sandbox) for the development of digital economy, green economy, circular economy and new business models. At the same time, reform institutions to attract investment in digital technology in the direction of maximizing convenience for capital contribution, share purchase, merger and acquisition of digital technology enterprises. Create a favorable environment to promote digital transformation and support business development.
The realities of cutting down on business licenses

The realities of cutting down on business licenses

VCN - According to the assessment of the National Assembly's Economic Committee, some regulations and administrative procedures at some agencies, units and localities are cumbersome and have not been thoroughly cut down, causing difficulties for businesses.
Bac Ninh Customs encourages customs brokerage services

Bac Ninh Customs encourages customs brokerage services

VCN - Bac Ninh Customs Department recommends supporting compliant customs brokers to approach large enterprises to have the opportunity to sign contracts and fully perform the role of customs brokers as prescribed.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version