Unprecedented market slowdown, Nghe An traders struggling due to Covid-19

SLOW SALES, LOSSES, THOUSANDS OF WORKERS FALL "UNEMPLOYED"

The clothing area at Sen market (Nam Dan) is deserted, with no shoppers. Photo: Thanh Phuc

Even though not belongingbusinesses forced to closeHowever, Ms. Nguyen Thi Loan, the owner of a kiosk selling handbags and suitcases at Vinh Ga market, has also faced many difficulties due to sluggish sales. Since 2020, the pandemic has broken out, and the profit from sales is not enough to cover the costs: rent, taxes, interest, employee salaries... forcing her to let two employees go, leaving her alone to sell goods to save costs.

Ms. Loan, a trader at Vinh Ga market, said: “Sometimes I only open my shop for a week to sell a few things, and on the most “busy” days, there are only a few people asking to buy. Whether I sell or not, to maintain my kiosk, I have to pay 200,000 VND per day for the premises, electricity, taxes... Since Tet, business has been sluggish, and I have to sell for free and make up for the loss. But now that I am closing the shop, I am anxious, afraid that if I keep the goods for too long, they will get moldy or spoiled, so I have to open the kiosk in the hope that someone will buy them...”.

Due to sluggish business, Ms. Loan, a vendor at Vinh Ga Market, was forced to lay off two employees and clean up, sell, and ship goods herself when customers needed them. Photo: Thanh Phuc

Not only Ms. Loan but most small traders have difficulties whenBusiness is sluggish due to the impact of the Covid-19 epidemic.

Mr. Le Vinh Hung, Head of Vinh Ga Market Management Board, said: “Up to now, 800/1,700 kiosks at Ga Market have closed due to sluggish sales and losses, resulting in nearly 2,000 unemployed workers. The main reason is the complicated epidemic, people limit going to the market to shop, the market is sparsely populated. Also because of the epidemic, the economy is difficult, there is not much money, so in addition to buying essential items for daily life, almost every family has to "tighten their purse strings", calculate and consider when buying other items if not absolutely necessary. During this epidemic season, maintaining and holding out is good, not to mention developing".

800/1,700 kiosks at Vinh Railway Station market were forced to close due to poor business and losses for traders. Photo: Thanh Phuc

At Sa Nam market (Nam Dan), except for the food stalls, which are crowded with people coming and going, the stalls selling clothes, shoes, handbags, cosmetics, etc. are deserted. Some vendors are embroidering pictures, some picking vegetables, some surfing on their phones to spend the whole market day.

Ms. Phan Thi Ha, a fashion retailer at Sa Nam market, said: “It’s very slow, no customers come in all day. I’m worried because clothes are sold seasonally, according to taste. If left until the end of the season, they will go out of fashion, become leftovers, and liquidation goods will result in a loss of capital. I don’t know how long I can hold out.”

According to incomplete statistics, currently in traditional markets, the rate of small traders closing their kiosks due to sluggish business and losses is about 50-70%; many shops along the streets, town centers, and townships also hang signs to liquidate goods, close their business booths, transfer kiosks... This leads to tens of thousands of unemployed workers with no income.

Small traders need companionship and sharing of difficulties.

Ms. Nguyen Huong, a trader at Sen market (Nam Dan) switched to online sales, but the number of customers decreased by 80% compared to before the pandemic became complicated. Photo: Thanh Phuc

Unable to sit and wait for the epidemic to pass, many small traders havedynamically transform business methods, from direct sales to online business to meet customer tastes, suitable for current conditions.

Ms. Nguyen Huong, owner of a clothing and cosmetics shop at Sen Market Trade Center (Nam Dan) said: "The epidemic is still complicated, and we don't know when we will return to "normal". Therefore, if we only rely on customers coming to see and buy products, the goods will definitely be congested and stagnant. Meanwhile, the nature of fashion clothing is to sell seasonally, according to tastes, and cosmetics will expire and spoil if left for a long time. In this situation, I focus on selling online, aiming at products with reasonable prices, suitable for all customers."

Some other retailers, in addition to selling online and delivering to customers, also launch promotions and discounts to stimulate customers to shop in many forms such as: buying a combo (2-3 products or more) and getting a gift; orders of 500,000 VND or more are eligible for a lucky draw... At the same time, they cut staff, save electricity and water; negotiate with landlords to reduce the price of premises to save costs, struggling to survive during the epidemic season.

Sen Market Shopping Center (Nam Dan) which used to be bustling and crowded is now deserted, shops are still open but there are no customers. Photo: Thanh Phuc

According to the feedback of small traders, for non-essential industries, due to the impact of the epidemic, purchasing power has decreased sharply. Business is increasingly difficult, while the Covid-19 epidemic continues to recur, causing many small traders to suffer losses, with little chance of recovering investment capital, not to mention profits. The wish of small traders is to reduce the price of premises, and exempt rent for the months when they are forced to close their businesses. At the same time, they hope that the Tax Department will review and considerextension of tax and land rent payment; banks have policies to reduce interest rates and extend debt…so they can manage to stay afloat in increasingly complicated epidemic conditions.

Comrade Cao Minh Tu - Deputy Director of the Department of Industry and Trade encouraged and shared difficulties with traders at Sen market (Nam Dan). Photo: Thanh Phuc

The Covid-19 epidemic is evolving complicatedly, business is sluggish and losses are causing small traders to suffer many economic losses. Therefore, in addition to the efforts of small traders to find ways to cope, it is necessary for all levels and sectors to participate, care and share so that they can both stabilize their business and ensure epidemic prevention, helping them to stand firm and seize new opportunities to recover and develop...

In reality, purchasing power at traditional markets tends to decrease, and small traders face many difficulties due to the Covid-19 epidemic. We sympathize with the difficulties of small traders, however, in the current conditions, when there is no support policy, small traders need to proactively change their business methods, flexibly expand their approach to customers through many different channels to maintain business and maintain income. The Department will closely monitor and grasp the situation, thoughts and aspirations of small traders to promptly reflect and propose support plans to relevant levels and branches.

Mr. Cao Minh Tu - Deputy Director of Department of Industry and Trade