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Foreign companies in Vietnam facing the new pandemic outbreak

Foreign companies in Vietnam facing the new pandemic outbreak

Wednesday 21, 07 2021
With a new COVID-19 outbreak, how are the foreign companies in Vietnam keeping up their operation?

Foreign companies dealing with the new outbreak

Having laborers vaccinated, assigning different work shifts, paying more, etc., are the solutions foreign companies in Vietnam implement to maintain operation and avoid breaking the supply chain.

According to Nikkei Asia, on July 14, during a webinar held by the American Chamber of Commerce, representatives of foreign companies in Vietnam stated that they were carrying out different anti-pandemic solutions such as installing camp at work, reassigning work shifts, and letting employees work from home as much as possible.

These were some methods that the foreign investors were implementing to maintain business operations in the worst outbreak ever of the pandemic in Vietnam.

Intel Vietnam is the biggest chips manufacturing and testing of the American technology firm Intel. The production of the Intel Vietnam manufacturing plant contributes greatly to the export value of Vietnam.

The news magazine Nikkei Asia reported that 71% of Intel employees in Vietnam were vaccinated for COVID-19. Besides, Intel also provides allowances for employees, lets employees stay at hotels, and provides them with COVID-19 test certification. All of those methods help the factory continue operation and keep from breaking the supply chain at one of the top providers of electrical devices in the world.

Intel

Uyen Ho, Public Affairs Director of Intel Vietnam and Malaysia, told Nikkei Asia that the foremost task of Vietnam is to ensure citizen’s safety. However, at the same time, enterprises like Intel also need to keep their business going to help to maintain Vietnam’s competitiveness.

Coca-Cola is one of many companies that apply the method of letting employees reside on-site to prevent the COVID-19 from spreading.

Huynh Thi Ngoc Truc, HR Director of Coca-Cola Vietnam, told Nikkei Asia that the company had been paying an allowance of about 10 USD a day for employees staying at the factory. She also said that the company had been organizing activities during the said residing period to help employees staying healthy physically and mentally.

Coca cola

Diversatek is a big US company, a provider of medical equipment for 70 countries over the world. With the requirement for medical equipment rising rapidly, production needs to be enhanced to ensure that supply to the market is without disruption. To acquire that purpose, the company establishes residential camps for employees and their relatives on-site and has employees tested for COVID-19.

Jonathan Moreno of Diversatek Vietnam stated that the company recently moved more than half of its employees to facilities in the suburbs of Ho Chi Minh City. Diversatek also increased over time and allowances, doubled salaries for employees.

Nikkei reported that while many representatives recognized the success of implemented solutions, some asked the authorities to help with licensing for foreign professionals to enter Vietnam. They suggested accepting rapid antigen testing in place of PCR in some cases.

The fourth COVID-19 outbreak in Vietnam has been threatening to disrupt the technology supply chain. Reacting to that, Vietnam added factory workers, including those working at Samsung and Apple, to the vaccination priority list.

 

Believing in long-term prospects

Opportunities for investing and doing business in Vietnam exist despite the impact of COVID-19. A report recently published by Infocus Mekong Research emphasized that there would be great business opportunities after the pandemic.

However, to make that possible, vaccination needs to be prioritized. Rapid deployment of vaccination is necessary to prevent an economic recession.

According to international research firms, foreign companies are still having confidence in the Vietnamese business environment. Many foreign enterprises are eager for investment opportunities in Vietnam.

The European Chamber

The European Chamber of Commerce in Vietnam informed that the new pandemic outbreak reduced the belief of European investors in the Vietnam market. However, in a long-term outlook, European companies are still planning to continue and expand their businesses. According to Thue Quist Thomasen, CEO of YouGov Vietnam, many European companies still considered maintaining and even increasing the number of employees for their operations.

In a different point of view, Ralf Matthaes of Infocus Mekong Research stated that enterprises would be on the brink of business suspension or even bankruptcy due to the impact of COVID-19. However, that would lead to opportunities for Vietnamese and foreign companies to invest in or acquire those companies.

In general, foreign companies in Vietnam are adapting to the difficulties caused by the new pandemic outbreak. COVID-19 is still creating hardship for enterprises. However, with accurate solutions and quick vaccination, investing in Vietnam can be rewarding in the long run.

 

Compiled by VietnamCredit

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