Most Japanese firms in Vietnam affected by COVID-19 travel restrictions: survey

Japanese businessmen participate in a ribbon cutting ceremony at Uniqlo's new store in Hanoi, March 2020. Photo by VnExpress/Giang Huy.

Revenues were down in the first half of the year for 65% of firms, and higher for only 13%, according to the survey, done in June by the Japan External Trade Organization (Jetro) and the Japan Chamber of Commerce and Industry (JCCI).

Eighty percent expressed the hope that the Vietnamese government would soon resume flights between the two countries, and 90 percent wanted the government to lift travel restrictions as soon as possible, said the survey of 631 firms.

Vietnam has not allowed foreign nationals in since March 22 and suspended international flights on March 25. Only diplomatic and official passport holders, experts and high-skilled workers are allowed entry.

The country cut down drastically on domestic flights and halted passenger road transport including taxis from April 1-22 as the country imposed nationwide social distancing.

Nearly three fourths expected full-year revenues to drop sharply. Twenty one percent said revenues would drop by 21%-30%, while 20% expected an 11%-20% drop.

Only 23% expected a recovery by the end of this year. Twenty one percent expected a recovery in the first quarter of next year, 15% in the second quarter and 7% in the third quarter while the rest said they are unclear when their businesses would recover.