News Flash

97% of Vietnamese textile-garment firms hit by pandemic: survey

25 Mar '21

2 min read

Pic: Shutterstock

Thirty five per cent of businesses in Vietnam had to terminate employees after being hit by the impact of the COVID-19 pandemic, according to a survey by the Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank. The survey found that textile and garment was the sector with the highest number of companies reporting negative impact (97 per cent).

That was followed by information and communications (96 per cent) and electrical equipment (94 percent), the survey, which polled nearly 10,200 businesses, it said.

Apart from dwindling number of workers, the other major difficulties businesses faced were difficulty in approaching customers and disruptions in cash flows and supply chains, it found.

Overall, 87 percent of companies reported a negative impact.

Small and micro businesses established less than three years ago were most affected by the pandemic, Dau Anh Tuan, head of the VCCI’s legal department, said.

But the government’s support polices were helpful, 70 per cent of respondents said.

Businesses called for more long-term solutions such as increasing public investment, completing ongoing infrastructure works and providing stimulus packages, according to media reports from Vietnam.

The VCCI has called on the government to provide financial support to companies that maintain a high employment rate and subsidize the cost of training to improve workers’ skills.

Vietnamese businesses should take the opportunities thrown up by the pandemic as major Japanese, US, European Union and Australian companies are looking to shift their supply chains out of China, it added.

The VCCI also did a survey of 1,564 foreign companies in Vietnam and found 87.9 per cent were affected by the pandemic and 22 per cent had to lay off workers.

Fibre2Fashion News Desk (DS)

More Vietnam Chamber of Commerce and Industry (VCCI) News... More Textiles News - Vietnam...