Business cash flow issues in Vietnam trump global average: survey

By Dat Nguyen   May 4, 2020 | 11:02 am GMT+7
Business cash flow issues in Vietnam trump global average: survey
A man walks past a closed business on Chua Boc Street, Hanoi on April 14, 2020 amid the coronavirus pandemic. Photo by VnExpress/Ngoc Thanh.

The ratio of Vietnam businesses facing cash flow problems, 47 percent, is higher than the global average of 37 percent, a survey has found.

52 percent of respondents reported customers stopping or reducing purchases because of the new coronavirus pandemic, compared to 29 percent globally, according to "Covid-19 Global Survey" by the Association of Chartered Certified Accountants (ACCA).

41 percent reported their supply chain disrupted, compared to 24 percent globally, stated the survey, which polled 10,000 world business leaders in March, with 279 in Vietnam.

Other challenges Vietnam businesses face include a reduction in employee productivity, having to defer the launch of new products and services, and inability to obtain supplies.

The Vietnam Tourism Advisory Board (TAB) recently proposed a VND150 trillion ($6.5 billion) credit package for travel companies, which are among the most severely hurt by the pandemic.

The Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) also sought a 50 percent reduction in or scrapping of value-added tax, income tax and land fees for six months.  

Covid-19 has caused major damage to Vietnam’s key sectors in the first four months of this year.

The number of companies suspending business in the first quarter rose 26 percent year-on-year to 18,600, according to the General Statistics Office.

Nearly five million Vietnamese workers have had to suspend work or lost their jobs as of mid-April, it said.

 
 
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