Many businesses are at risk of bankruptcy because of Covid-19

Many businesses are at risk of bankruptcy because of Covid-19 5

The above results have just been released by the Private Economic Development Research Board (Division IV) after surveying over 1,200 businesses about the impact of Covid-19 on business activities.

74% of businesses said they would go bankrupt if the epidemic lasted 6 months, mainly because revenue could not cover operating expenses such as salaries, bank loan interest, renting premises…┬áIn addition, nearly

The industry groups seriously and immediately affected by Covid-19, according to survey results, are tourism (accommodation, hotels, catering), education, textiles and garments, leather and footwear, and wooden furniture production..

`Many businesses in the tourism and education industries cannot respond promptly when there are no customers at all, or non-public educational establishments have no students going to school,` the report of Division IV stated.

For the textile and garment industry, the leather and footwear industry has the biggest impact due to its dependence on imported raw materials and accessories from China, 61% and more than 57% respectively.

Manufactured at Dong Xuan Knitting Company.

As a major supplier of raw materials for processing and manufacturing industries, China is also the market that consumes 60-70% of Vietnam’s total export of wood chips and 67% of total exported paper.

`Suffering a blow` from the Covid-19 epidemic, most businesses said they were forced to lay off workers or give them unpaid leave, or even temporarily suspend business.

More worryingly, about 20% of businesses reported `no solution to cope with the epidemic`.

In addition to saving themselves, businesses petitioned the Government to have its own policies to `save` them, such as reducing corporate income tax, VAT, waiving interest on late payment taxes, waiving social insurance payments… The Government also

Many businesses are at risk of bankruptcy because of Covid-19

Business solutions expect support from the Government.

Besides, businesses also want the Government to implement stimulus packages, open customs clearance to import input materials, reduce electricity and water prices…

At the Government meeting 2 days ago, Prime Minister Nguyen Xuan Phuc said he would issue a Directive on urgent solutions to remove difficulties for businesses affected by Covid-19.

The Government’s support package will include credit and fiscal support solutions (deferral, tax deferral…) and focus on industries with direct losses such as tourism, aviation, import-export…

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