As the coronavirus (also known as COVID-19) pandemic continues to spread globally, the Inside Out and our partners are continuing to work to analyze the business impact of the virus in Vietnam.
Through the information provided by the Inside Out, get a better understanding of the business and economic implications coronavirus has on trends in the country like remote working, consumer shopping behavior, global advertising spend, and essential industries like food, medical, travel, and transportation.
How does the coronavirus impact the economy?
A simple look at the stock market will tell you that coronavirus has led to a volatile economy, but there are numerous other factors at play. The initial outbreak of the coronavirus in China disrupted global supply chains. As of August 2020, over 540,000 Vietnamese youths to lose jobs due to Covid-19 fallout, according to a new report. Even when the short-term effects end, the long-term economic impact will ripple for years.
How does the coronavirus effect the small business?
More than 99% of all businesses are small businesses1, and they employ about half the workforce. Most small businesses lack the cash reserves to weather a month-long interruption, and if it is defeated within three months the job loss is estimated at 370,000, equivalent to a 10.8 percent jobless rate as a result of the coronavirus pandemic. There are also the possibility of a “startup depression,” wherein new companies don’t enter the job market because of the pandemic.
Which industries are most impacted by the coronavirus?
Hospitality and travel are two of the biggest industries impacted by COVID-19 thanks to travel cancellations, restaurant and bar closures, and low consumer confidence. Manufacturing and construction have largely held off on layoff decisions, but these industries could suffer the strain as consumer demand drops.
How should businesses prepare for coronavirus?
Vietnam’s government has outlined ways for businesses to adjust to the pandemic, such as assessing your essential functions and the reliance that others and the community have on your services or products.