Japanese firms in Vietnam face revenue losses due to COVID-19

Production and revenue of Japanese enterprises in Vietnam are expected to fall at 70% in the second quarter of 2020, the results of the latest survey showed.

japanese firms in vietnam face revenue losses due to covid-19 hinh 0
Many of the more than 1,000 Japanese enterprises operating in Vietnam have seen revenue dropping significantly because of the effects of the COVID-19 pandemic. (Photo: VNA)

According to the survey jointly conducted by the Japan External Trade Organisation (JETRO) and the Japanese Chamber of Commerce and Industry in Ho Chi Minh City (JCCH), compared to the February survey, the number of affected businesses has doubled.

The survey showed that up to 60% of businesses said their March production and revenue fell by 10-50%, while up to 70% of companies said the impact would last in the second quarter and even the rest of the year.

Japanese enterprises in Vietnam predicted their revenue this year would fall by 20-40%, and some businesses forecast revenue dropping by 50% compared to last year.

Japanese businesses operating in Vietnam also said the interrupted supply chain had affected the production situation.

The restriction of movement between Vietnam and other countries had led to less personnel movement of many companies, and many companies had had to adjust their personnel plans, including foreign experts.

To curb the damage, Japanese businesses said they hoped the Vietnamese Government would provide quick and accurate information on the COVID-19 situation.