Japanese enterprises in Viet Nam face revenue loss amid Covid-19 pandemic

Tuesday, Apr 14, 2020 17:27

Many of the more than 1,000 Japanese enterprises operating in Viet Nam have seen revenue dropping significantly because of the effects of the the Covid-19 pandemic.— VNS Photo Van Chau

Production and revenue of Japanese in Viet Nam is expected to fall at 70 per cent in the second quarter, according to a survey of the Japan External Trade Organisation (JETRO).

According to JETRO, compared to its February survey, the number of affected businesses has doubled.

Viet Nam has more than 1,000 Japanese enterprises which operate mainly in HCM City, and Dong Nai, Binh Duong and Long An provinces.

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

Japanese enterprises in Viet Nam predicted their revenue this year would fall by 20 to 40 per cent, and some businesses forecast revenue dropping by 50 per cent compared to last year.

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

The restriction of movement between Viet Nam 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. — VNS

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