Micro- and small-sized enterprises and those in business for less than three years were the most affected by the COVID-19 pandemic, according to a report on the pandemic’s impact on businesses in Vietnam.
The report was released on March 12 by the Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank in Vietnam. It surveyed nearly 10,200 enterprises nationwide on their views of the pandemic’s impact on the economy as well as the measures they took in response.
Ninety percent of businesses were seriously affected, it found, with many narrowing or suspending operations or even going bankrupt.
The number of enterprises ceasing operations was a record high, at in excess of 100,000.
VCCI Chairman Vu Tien Loc said the pandemic provided valuable lessons that will help enterprises overcome the difficulties and remain in business. Many have actively adjusted their strategies, stepped up restructuring and worker training, and paid more attention to the domestic market, support industries, and supply chains.
Dau Anh Tuan, head of the VCCI’s Legal Department, said the report also highlights the encouragement and support coming from the State.
The Government’s support policies amid COVID-19 were appreciated by the business community, with 75% of respondents describing them as helpful.
Businesses also emphasised the importance of stepping up administrative procedure reform and improving the efficiency of law enforcement, to create a favourable business environment and support the sustainable recovery of enterprises in response to the impact of the pandemic.