Information, communications revenue plummets due to pandemic

By Anh Tu   May 8, 2020 | 11:16 pm PT
Information, communications revenue plummets due to pandemic
Lines of code seen on a laptop of a software developer. Photo by Shutterstock/ProStockStudio.
Vietnamese ICT firms have witnessed Covid-19 decrease revenues by 30-90 percent as foreign customers cancel or delay orders.

Since March, the number of contracts from Europe have fallen by 60-70 percent, while, since April, those from Asia dropped 30 percent, according to the Ministry of Information and Communications.

As customers from the U.S., Japan, South Korea and Europe delay or cancel orders due to Covid-19, ICT businesses struggle to source parts with the supply chain disrupted by global travel restrictions.

Although there are more social media and streaming platform users, businesses have delayed their marketing programs, which could lead to a loss of 15-20 percent in ads revenue.

Online game distributors also face challenges due to Chinese partners suspending operations in previous months to contain the outbreak.

Postal services, although not severely hurt, still see revenues down by 10 percent from February.

Technology, information and communications enterprises recorded VND3.1 quadrillion ($134 billion) in revenue in 2019, up 8.8 percent year-on-year, according to the information ministry.

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