Covid-19 takes heavy toll on Vietnamese firms’ incomes: survey

By Nguyen Quy   September 11, 2020 | 02:07 am PT
Covid-19 takes heavy toll on Vietnamese firms’ incomes: survey
A worker irons face masks in a garment factory in Ho Chi Minh City, April 21, 2020. Photo by VnExpress/Nguyet Nhi.
Sixty percent of Vietnam’s 500 largest enterprises saw revenues fall in the January-June period due to Covid-19, a report has found.

Well over half also reported falling pre-tax profits, with 31 percent saying they fell significantly or even suffered losses, according to the report released on Thursday by market research firm Vietnam Report (VNR).

In terms of expectations for full-year revenues, 46 percent were pessimistic. Over half said they would not earn profits this year.

Almost 72 of the companies carried out sales promotions to survive the pandemic, 58.3 percent sought new markets, 49 percent researched new products, and 42.6 percent cut costs.

Many are seeking assistance from the government, with 68.3 percent calling for delaying tax payment, 56.7 percent wanting additional financial support for affected businesses and 51.7 percent calling for ensuring economic stability.

A quarter of the respondents expected Vietnam’s GDP growth to be under 3 percent this year, 61.7 percent expected 3-5 percent and the rest could not estimate.

Prime Minister Nguyen Xuan Phuc had said last month that the country would strive for positive GDP growth by providing support packages to businesses and individuals.

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