A third of businesses might not survive 3-month pandemic: survey

By Dat Nguyen   April 5, 2020 | 09:25 pm PT
A third of businesses might not survive 3-month pandemic: survey
A motorbike driver rides past closed shops in Hanoi on March 26, 2020 amid the coronavirus pandemic. Photo by VnExpress/Giang Huy.
Thirty five percent of small and medium-sized businesses could go under if the coronavirus pandemic persists for over three months, a survey has found.

Another 38 percent could hold on for six months, and 27 percent could last a year or more, according to the survey by the Vietnam Young Entrepreneurs Association (VYBA).

Half the 348 businesses polled nationwide in March expected revenues to fall by at least 40 percent this year, while 14 percent said it could be 70 percent or more.

The association said many businesses in hospitality, tourism and transportation have shut down most operations.

Manufacturing firms are either struggling to source raw materials or sell their products due to lower global demand, it said.

Two thirds of all businesses plan to cut staff while half will reduce investments planned for this year.

Businesses want credit at lower interest rates and tax breaks to survive.

The government has directed banks to provide VND285 trillion ($12.1 billion) worth of credit to businesses affected by the pandemic.

It also plans to use VND61.6 trillion ($2.6 billion) from its funds to support businesses and workers who lose their jobs.

Prime Minister Nguyen Xuan Phuc issued a decision declaring the novel coronavirus outbreak an epidemic in Vietnam on February 1.

Many of the 150 active cases are Vietnamese nationals returning from abroad, mostly from Europe and the U.S., and more than 60 people are related to the two major Covid-19 hotspots – the Bach Mai Hospital in Hanoi and Buddha Bar & Grill in Ho Chi Minh City. Ninety one patients have been discharged from hospital.

The global death toll in the ongoing Covid-19 pandemic has reached more than 69,300 people.

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