Meta: Vietnamese SMBs are recovering from the pandemic
Meta: Vietnamese SMBs are recovering from the pandemic
In the third year of the pandemic, economic recovery is still underway despite the disruptions to business from the Omicron variant.
According to the 2022 State of Small Business report from Meta, a survey of nearly 24,000 small and medium-sized business leaders across 30 countries and territories, conducted in January 2022, 20 percent of businesses surveyed globally reported being closed. This is three percentage points higher compared to July 2021. It represents a small increase compared to previous fluctuations since Meta started surveying global small and medium-sized businesses (SMBs) in 2020 and may reflect the impact of the Omicron wave in the region.
Omicron wave has disrupted small business recovery in Vietnam, 75 percent of SMBs using the Facebook platform reported that they were operational or engaging in any revenue-generating activities, decreased by five percent compared to September 2021. However, for a small subset of businesses that remained open, sales were starting to improve, 23 percent of operational SMBs using the Facebook platform reported that their sales in the past month were higher than the same month last year, (increased by six percent), while 67 percent reported their sales were lower (decreased by nine percent comparred to the last September).
Concerns about cash flow as well as market demand have also improved compared to six months ago. 32 percent of operational SMBs using the Facebook platform expected challenges related to cash flow and 42 percent expected challenges related to a lack of demand in the next few months, decreased about one third.
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The number of SMBs having to reduce the size of their workforce as a result of the pandemic reduced by nine percent compared to September 2021 to 44 percent. Besides, 55 percent of operational SMBs using the Facebook platform said they were confident in their ability to continue operating for at least 12 months if current circumstances were to continue, nearly double the survey in September 2021.
Many businesses are finding success online. In Vietnam, 59 percent of operational SMBs using the Facebook platform reported making at least 25 percent of their sales digitally in the past month.
In addition to the efforts of Vietnamese SMBs to overcome difficulties, the significant improvement in business situation and economic recovery has been achieved through the cooperation of relevant agencies. Nine percent of operational SMBs using the Facebook platform said they have received financial assistance in the form of a cash grant or loan from a government source since the start of the COVID-19 pandemic.
The survey also shows that the pandemic has made hybrid working the new norm. The survey showed that SMBs are increasingly focused on returning to physical spaces, while also maintaining digital operations. Approximately 25 percent of SMBs surveyed globally currently operate a digital-only business, whereas only 10 percent intend to run digital-only business operations once the pandemic ends. In contrast, 39 percent intend to use mostly or only in-person business operations, a rise of eight percentage points since July 2021.
The majority of SMBs intend to use digital and physical operations together, with approximately 69 percent of SMBs planning to do so. Similarly, 40 percent of SMBs expect hybrid working to be necessary in the future, with this proportion increasing for larger SMBs relative to smaller firms.
“It’s encouraging to see that businesses in the region are on a steady path to recovery despite the challenges. As SMBs transition to a hybrid retail world, we will continue to work on providing them with the tools and enablers they need to succeed,” said Mr. Khoi Le, Country Manager, Vietnam at Meta.
