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Handmade products from lepironia
Troubleshooting
In the first six months of the year, the province had 324 newly established enterprises, decreasing by 13.6%, with a total registered capital of 2,619,825 billion dong, reducing by 48.8% over the same period. The number of enterprises registered for temporary suspension and the number of dissolved enterprises both increased due to the direct impact of the pandemic.
Among these, there are 316 enterprises temporarily suspended (increasing by 10.88%), mostly in the following sectors: tourism, entertainment (22.5%), transportation (8%), construction (12.3%), production and processing (7.91%), and wholesale and retail (17.7%). Besides, there are 75 enterprises announcing their dissolution and withdrawal from the market.
According to the assessment of the business community, up to now, more than 90% of businesses have been negatively affected by the impact of the COVID-19 pandemic. However, there are also over 3% of the companies that have received positive impacts from the pandemic. These businesses operate in the fields of insurance, healthcare, retail, etc.
Mr. Duong Tuan Anh, Chairman of the Provincial Business Association, said that within the province, because of their small market, micro-enterprises were affected to a certain extent, unlike small and medium enterprises, which are very seriously impacted. About two-thirds of businesses have applied at least one of the solutions to adapt their production and business activities to the new normal condition.
Ms. Ho Suong Lan, Director of Phong Lan Viet Tourism Co., Ltd, expressed that she was running three businesses, costing nearly 100 million dong per month to operate and pay the employees. During this period, any enterprise that can feed itself is already a blessing. If the enterprise can't "live”, then we have to "feed" it and wait for the "revival" day.
“For the past two months, July and August, the company's handmade Maries handbags and hats from lepironia could not be exported because of "transportation congestion". Confused by the sudden loss of 70% of revenue from the southern market, businesses turned to the northern market. As a result, they saved nearly 50% of the revenue. Now, where the "green zone" reopens, I will promote sales again," said CEO Ho Suong Lan.
In addition to changing markets, Ms. Lan also increased advertising and online sale, stimulating customers to explore and order products so that in addition to selling directly, there was still a large number of customers ordering online.
During the past few months, while hotels and restaurants have to close due to the pandemic, the chain of Chan, Lan Kwai Fong, and Ta Vet restaurants of Khang Han Company still has "living land" and revenue to cover expenses. However, the fourth "wave" of the pandemic was severe, forcing businesses to find a way out.
Ms. Nguyen Thi Dong Phuong, Director of Khang Han Company, shared that having the concern about the pandemic's complicated situations led to restaurants having temporarily closed. In order to have the cost of "feeding" personnel, our business has switched to the form of door-to-door sales with constantly changing menus and reasonable prices. In this way, not only the customers don't "forget" us, but we can keep the staff occupied as well.
Need to be specific and realistic
In the province, besides activities such as tourism, travel, accommodation, and entertainment almost stopped operating, many other commercial and service activities such as restaurants, coffee shops, cars, and motorbikes have few customers. The business community of Thua Thien Hue, especially small, medium, and micro enterprises, has not yet recovered from the previous pandemic outbreaks, now encounters a "new storm," and is likely to be "knocked down.”
Enterprises are also affected by many other factors, including disruptions in the supply of input materials and the market for goods, order reduction, production reduction, leading to investment delay or schedule extension, even cancellation of ongoing or future projects. Moreover, businesses also incur additional costs to prevent the COVID-19 pandemic.
Many businesses shared that they were interrupted, halted, or even stopped operating due to the pandemic situation. More seriously, they were on the verge of bankruptcy due to the sudden drop in demand in the market, leading to reduced revenue as well as facing risks of debt collection and insolvency.
Mr. Nguyen Hung, the owner of a transport enterprise, stated that the company's only perspective at this time is "to survive and wait for the recovery of safe operations after COVID-19. To do so, in addition to the "management" of enterprises, it is imperative that the province prioritize vaccination for drivers and service staff, including transport operators.”
CEO of Phong Lan Viet Company expressed, "Businesses need the State's policy mechanisms, including support for goods trading, transportation, insurance support for employees, debt rescheduling and loans.
The Chairman of the Provincial Business Association acknowledged that there are guidelines and policies of the Government and ministries to support businesses. Still, in fact, it is challenging for businesses to access. Therefore, "there is a need for more specific and realistic support for businesses,", suggested Mr. Duong Tuan Anh.
Story and photo: LIEN MINH