US businesses ‘very concerned’ about the economic impact in Vietnam
Of member companies that are able to estimate the impact, 70% say the coronavirus is expected to reduce their revenue by 10% or less this year.
Members of the American Chamber of Commerce in Hanoi (AmCham) are concerned about the health impact of the coronavirus in Vietnam, and are very concerned about the economic impact of the coronavirus in the country, a survey has shown.
AmCham has surveyed its members about the business impact of the coronavirus in Vietnam. The survey focused on quantitative issues such as the coronavirus’ expected impact on corporate revenues and Vietnam’s GDP, as well as workplace issues such as travel and work from home policies.
Sixty percent of companies responding now allow staff to work from home and almost all members offer hand sanitizer in the workplace.
One-half of respondents are experiencing difficulty getting people to come here from abroad, and almost 80% of member firms have cancelled or postponed meetings or events due to concerns over the coronavirus outbreak.
One-quarter of respondents are restricting staff travel within Vietnam, while three-quarters are restricting travel to some or all countries abroad.
Most members say it is too early to gauge the impact of the coronavirus on their estimated 2020 revenues. However, of companies that are able to estimate the impact, 70% say the coronavirus is expected to reduce their revenue by 10% or less this year.
One-quarter of members think Vietnam’s GDP will drop by more than 1.5% due to the coronavirus. One-quarter expect little or no change in GDP. The remaining one-half are somewhere in the middle.
The ongoing coronavirus outbreak is causing anxiety and uncertainty for both people and businesses in Vietnam. For companies and the broader economy in Vietnam, the outbreak is already a serious problem, which goes far beyond the immediately vulnerable travel, tourism, and education sectors. Supply chain disruptions and travel restrictions are and will continue to impact many business sectors, said AmCham Executive Director Adam Sitkoff.
“More than half of our members in the manufacturing sector are experiencing difficulty sourcing supplies/materials due to disruptions from the coronavirus, and more than one-third of members say that current supply chain disruptions are already seriously impacting their company’s global operations. The biggest challenges are securing alternative materials/goods, along with inventory management,” Sitkoff added.
AmCham encourages members to focus on maintaining a safe workplace and maintaining business operations during this disruption. “Most importantly, we urge all company managers to stay alert, act reasonably, and make decisions based on facts and necessity,” Sitkoff said.