Recently, the epidemic in Vietnam remains severe, with the number of cases continuing to rise in many places and the death rate rising rapidly. The epidemic has dealt a heavy blow to Vietnam’s economy, and local companies are facing serious operating difficulties due to the epidemic.
According to statistics, 90,300 companies in Vietnam delisted in the first three quarters. At the same time, the impact of the epidemic on Vietnam’s manufacturing industry is gradually affecting many links in the industrial chain. The global supply chain of clothing, shoes and hats, electronic technology and other industries has also been disrupted.
According to the Vietnam News Agency, on the evening of November 15th local time, the Ministry of Health of Vietnam informed that in the past 24 hours, Vietnam There were 8,616 new confirmed cases of COVID-19, including 13 imported cases and 8,603 locally confirmed cases (an increase of 440 cases from the previous day), involving 57 provinces and cities across the country; 3,950 confirmed cases were found through community screening. There were 101 new deaths, rising to triple digits again.
The epidemic has dealt a heavy blow to Vietnam’s economy
According to data released by the General Bureau of Statistics of Vietnam, due to Due to the severe impact of the COVID-19 epidemic, Vietnam’s gross domestic product (GDP) is expected to grow by only 1.42% in the first nine months of 2021 compared with the same period last year. Among them, the second quarter economic data has been revised down from 6.61% growth to 6.57%; while the third quarter gross domestic product (GDP) fell 6.17% year-on-year, which was the first single-quarter decline since 2000.
In September this year, the General Bureau of Statistics of Vietnam conducted a survey on the operating conditions of enterprises nationwide, which showed that 90,300 enterprises delisted across the country in the first three quarters, an increase of 15.3% over the same period last year. The survey shows that 94.3% of companies are facing difficulties due to the epidemic.
Among them, 98.9% of enterprises in 19 southern provinces and cities are facing serious difficulties due to the epidemic, especially enterprises in the southeast, where this proportion reaches 99.1%. More than 6,600 industrial enterprises across the country participated in the above survey, and 95% of them said they were affected by the epidemic. Among them, 80% of companies have increased investment due to epidemic prevention and control; 54.2% of companies have increased production costs due to rising raw material prices; 49.5% of companies have increased expenditures due to rising logistics prices; 40.8% of companies have a shortage of production raw materials; 33.4% Enterprises are experiencing labor shortages.
Vietnamese enterprises are facing labor shortages under the new normal
Vietnam General Bureau of Statistics A recent nationwide survey on the impact of the COVID-19 epidemic showed that 17.8% of the 22,764 companies surveyed lacked labor. The proportion of enterprises in the southeast region that are short of workers is as high as 30.6%. Among them, provinces with serious labor shortages are Binh Duong (36.9%), Binh Phuoc (34.4%) and Ho Chi Minh City (31.8%). The industries with the most serious labor shortages are electronics, computers and optical products (55.6%), leather and related products (51.7%), clothing manufacturing (49.2%), electrical equipment manufacturing (44.5%) and textiles (39.5%).
Although provinces and cities such as Ho Chi Minh City have recently reopened their lockdown after being closed for several months, only those with “green cards” (those who have received two doses of the vaccine) can work. In addition, after the restrictions were lifted, a large number of workers took the opportunity to flee factories and return home. The Vietnamese government predicts that the number of returnees may exceed 2 million, which will further create a larger labor gap in the country’s manufacturing industry.
The global supply chain has been disrupted by the Vietnam epidemic
The impact of the new coronavirus epidemic on Vietnam The impact on the manufacturing industry is gradually affecting many links in the industrial chain. For example, Pou Chan Group is the world’s largest sports shoe manufacturer. October 6th was the day when its factory in Ho Chi Minh City officially resumed work. However, according to statistics on that day, only 20%-30% of the workers returned to their original jobs. More than 40,000 employees failed to return to work on time.
According to estimates from the Vietnam Textile and Garment Association, the industry originally employed 3 million people, but now 1 million of them have resigned, are temporarily unable to work, or are on unpaid leave. The association stated that the industry is facing labor shortages, supply chain disruptions and other difficulties. Foreign trade orders are not delivered in time and may not be able to meet the originally set full-year export targets. </p
