US companies running short on materials during COVID-19 outbreak
US companies running short on materials during COVID-19 outbreak
The biggest challenges for US companies are securing alternative materials/goods supplies, along with inventory management, according to a recent survey by AmCham Hanoi.
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The survey pointed out that over 50 per cent of responding members from the manufacturing sector are experiencing difficulties in sourcing supplies/materials due to disruptions from the COVID-19 outbreak and 35 per cent of respondents say that current supply chain disruptions are already seriously impacting their company’s global operations.
In addition, some companies are not operating at full capacity right now but most members in the manufacturing sector are hopeful that they will be operating near full capacity within two weeks.
Most members say it is too early to gauge the impacts of the coronavirus on their estimated 2020 revenues. However, of companies that are able to estimate the impact, 70 per cent say the coronavirus is expected to reduce their revenue by 10 per cent or less this year.
It is worth noting that one-quarter of respondents think Vietnam’s GDP will drop by more than 1.5 per cent due to the coronavirus. One quarter expect little or no change in GDP. The remaining half are somewhere in the middle.
In addition to concerns related to revenue and materials, US companies are also experiencing difficulties in getting people to come to Vietnam from abroad. Since the COVID-19 outbreak, 60 per cent of companies responding now allow staff to work from home and almost all members offer hand sanitiser in the workplace. Almost 80 per cent of member firms have cancelled or postponed meetings or events due to concerns over the COVID-19 outbreak.
