11:09, 27/09/2021

Enterprises in difficulties

In the context of the Covid-19 epidemic, production and business activities of enterprises in Khanh Hoa province are facing many difficulties that need to be solved.

In the context of the Covid-19 epidemic, production and business activities of enterprises in Khanh Hoa province are facing many difficulties that need to be solved.
 
Facing many difficulties
 
The Covid-19 pandemic that broke out in recent months has seriously affected the entire life and economy - society in the province. During the implementation of social distancing, production and business activities of many enterprises were suspended, suffered loss…; many production units had to suspend operations or close. The demand fell sharply, causing orders, contracts, and output decrease, leading to a sharp drop in business revenue. The cash inflow was seriously short, leading to difficulties in covering expenses to maintain production and business activities. Along with that, the supply chain of production, consumption and export was interrupted; cargo traffic is difficult…
 
According to Nguyen Van Du, a member of Hai Vuong Group's Board of Directors, to ensure orders and not disrupt the supply chain for foreign contracts, businesses must accept losses or increase costs to maintain production. "Normally, we only make  lunch meals for employees, but when doing "3 on the spot", we have to take care of 4 meals/day for workers. Besides, there are a series of other costs such as hotel rental, electricity, water, cost of control and prevention of epidemics ... Accordingly, each month, our business has to spend about 1 million USD more",  Du said.
 
In addition, the cost of rapid testing every 3 days for all employees also makes businesses face a lot of pressure. In addition, the regulation that people are not allowed to leave home from 7pm to 5am makes it difficult for businesses to organize 2 shifts. 
 

 

Production at Hai Nam Co., Ltd.
Production at Hai Nam Co., Ltd.
 
Businesses need support
 
In order to help businesses reduce difficulties, in the immediate future, production and business units hope that the province will soon organize meetings, exchanges and contact with businesses to grasp and deploy the spirit of production recovery in the current context. The businesses need be supported and facilitated to maintain production to keep supply chain.
 
Besides, businesses also expect the province to strengthen promotion activities, connect manufacturers, suppliers with distributors, and organize trade promotion in localities in the country.
 
Nguyen Sanh Duong - Deputy Director of the provincial Department of Industry and Trade said that in order to partly solve difficulties for businesses, the department proposed the Provincial People's Committee to direct the Health sector to prioritize vaccination against Covid-19 for employees at enterprises, production and business establishments in order to facilitate travel, reduce testing costs, and gradually stabilize production and business. The department also recommends that sectors guide and promptly resolve policies to support those affected by the Covid-19 epidemic so that businesses and employees can overcome difficulties.
 
Dinh Lam
 
Translated by T.T