258 Nghe An enterprises heavily affected by Covid-19 epidemic

For more than a month now, Mr. Bui Huu Canh, a worker for TDV Production and Trading Company Limited in Nghe An, has been unemployed. 3 years ago, Mr. Canh started working at this company with a salary of 6 million VND/month. The stable income is enough to cover living expenses, and he can send money back to his wife and children in the countryside every month. Mr. Bui Huu Canh confided: For a whole month now, due to the epidemic, the company has announced that they will be closing their jobs. Since he returned to his hometown, he doesn't know what to do to make a living, so he is staying in his rented room to find extra work.

Mr. Bui Huu Canh - from Nghia Dan, a worker for a company in Nghe An, had to quit his job due to Covid-19. Photo: Van Truong.

Mr. Le Tien Tri - Head of the Management Board of the Southeast Nghe An Economic Zone said: Up to this point, in the Southeast Economic Zone and Nghe An Industrial Parks, there are 7 enterprises that have had to temporarily stop production, causing over 5,223 workers to be temporarily laid off.

Specifically: Tan Viet Trung Artificial Wood Panel Joint Stock Company, all key leaders and technical experts are Chinese who have returned to work for the 2020 Canh Ty New Year holiday due to the epidemic. More than 80% of MDF artificial wood panel products are unsold, currently in inventory of 6,050 m³ forced the company to temporarily stop production, from February 27, 2020 to now, there are currently 150 workers who have to quit their jobs.

Hanoi - Nghe An Beer Joint Stock Company, the company's beer products are almost 100% unsold, currently having an inventory of up to 2.6 million liters of beer, forcing the company to temporarily stop production from January 22, 2020 until now, nearly 100 workers have to quit their jobs.

Due to a shortage of nearly 70% of production materials and product consumption reaching only 30%, Saigon Packaging Joint Stock Company has been forced to temporarily suspend production since March 1, 2020, causing nearly 200 workers to be laid off.

At Sangwoo Vietnam Co., Ltd., due to the temporary suspension of production of export orders to the US market, the Company has temporarily suspended operations for half a month, from April 6, 2020 to present, causing 1,400 employees to temporarily take unpaid leave.

Many businesses are currently having to switch to limited operations, leading to nearly 7,000 workers having to take turns off work and cut their income: For example, Matrix Vinh Company Limited, due to export orders to the European and American markets being temporarily suspended from April 1, 2020 to present. The company has agreed to arrange for all 1,020 workers to temporarily work 3-4 days/week in rotation....

A garment enterprise in Bac Vinh Industrial Park has stopped operating due to difficulties caused by the pandemic. Photo: Van Truong.

During this time, most businesses are trying to overcome difficulties to pay salaries and ensure other benefits for employees. But in general, they only achieve a minimum of 30 - 70% of the average income of employees.

If the epidemic situation continues to be complicated and prolonged, it is predicted that in the coming time, businesses will have great difficulties and will not be able to continue paying salaries and ensuring other benefits for employees. Especially for textile and garment enterprises that mainly export to European and American markets.

Chart of the proportion of businesses in industries affected by Covid-19. Graphics: Lam Tung

As of April 20, 2020, according to initial survey data from the Southeast Economic Zone Management Board and People's Committees of districts, cities and towns: 1,081 enterprises have submitted reports, of which 258 enterprises were affected by the Covid-19 epidemic.

By industry: Services 185; manufacturing and processing 41; transportation 05; construction 15; education 08; other fields 04. Total number of affected workers: 10,342 people (of which: Workers whose labor contracts were terminated: 707 people; Workers temporarily suspended from work: 5,223 people; Other affected workers (rotational leave, reduced income): 4,412 people.

The leader of the Southeast Economic Zone Management Board said: In this difficult period, there should be solutions to support businesses and employees. It is possible to exempt and reduce taxes and compulsory social insurance premiums for businesses that are having to temporarily suspend production. It is recommended that the provincial Social Insurance consider exempting 100% of the rate of compulsory insurance contributions of employers and employees until businesses return to stable operations.