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Businesses downsize operations amidst rising COVID-19 infections

VGP – Both enterprises and laborers are facing mounting difficulties due rising COVID-19 infection cases in Viet Nam over the past two weeks.

03/23/2020 17:30

The Ministry of Labor, Invalids, and Social Affairs (MOLISA) reported that 55 million people are working at economic establishments, including 15 million at enterprises and 9 million at cooperatives and non-agricultural economic establishments. 

Meanwhile, 8.8 million people are working in agro-forestry-fishery sector, processing and manufacturing industry, transport, lodging and food services. 

Statistics showed that about 10% of enterprises said they had to cut production scales in February due to COVID-19 impacts. In the third month, especially the second and third weeks of March, over 15% of enterprises reported they had to downsize business operation. 

Especially, the garment and textile sector cut 2.8 million jobs. A large number of enterprises had to shorten working time or cut overtime, especially during weekends. 

As many as 500,000 employees of the aviation, railway, and road transport sector are also facing salary cuts or even losing jobs. In aviation transport, salary has been reduced by 20-40%.

In tourism sector, over 500,000 laborers are also coping with extreme difficulties as enterprises are struggling with loans, bank interest rates, as well as ground rental costs. 

The COVID-19 outbreaks also led to shrinking manpower demand with a decrease of 20-30% on average, and 40% and 36.7% in Ho Chi Minh and Ha Noi, respectively.

Against the backdrop, the Ministry of Labor, Invalids, and Social Affairs has submitted to the Government a plan with a range of supportive measures to help businesses weather this hard time./.

By Hoang Ha