02.08.2021, 07:51

Manufacturing enterprises worry about production disruptions

Manufacturing enterprises worry about production disruptions

Workers wait for their turn to get vaccinated against Covid-19 - PHOTO: VNA

HCMC - Manufacturing enterprises have expressed concern over disruptions in the supply chain after many businesses, especially in southern cities and provinces, were forced to shut down during the fourth Covid-19 wave, which began in late April.

According to stricter anti-pandemic measures that have been imposed recently, to maintain operation, manufacturing enterprises have to provide meals and accommodation at the factories, dormitories or hotels for their workers.

Besides, the workers are not allowed to travel to work by private vehicles. Therefore, the companies must have coaches or buses to transport the employees.

There are currently only more than 500 businesses in HCMC that can meet these requirements on Covid-19 infection prevention and control.

According to representatives of four industry associations including the Vietnam Textile and Apparel Association, the Vietnam Leather, Footwear and Handbag Association, the Vietnam Electronic Industries Association, and the Handicraft and Wood Industry Association, up to 90% businesses active in these industries have closed down, causing disruptions in the supply chain.

In the textile and apparel industry alone, 97% of businesses have suspended their operations.

According to Pham Van Viet, chairman of the board of directors of Viet Thang Jean Company Limited, the company is able to provide accommodation at the factory for only 35% of its 3,500 workers, making it hard for the company to fulfill orders.

Truong Thi Chi Minh, vice chairwoman of the Vietnam Association of Supporting Industries, said up to 50% of the association’s member enterprises have seen their revenues decline sharply. During the fourth wave of Covid-19, many enterprises in the South have been temporarily closed down and even those that remain operational are unable to fulfill their orders.

“Many of them are small and medium enterprises, which are the most vulnerable to the pandemic,” she added.

Moreover, some manufacturers are concerned that delays in production, shipment and delivery as well as the inability to fulfill orders will prompt their customers to switch suppliers.

Some businesses said that if the pandemic prolongs and they are not able to resume operations soon, they will go bankrupt.

According to the industry associations, Covid-19 vaccination is the only solution for manufacturing firms to maintain production and hope for recoveries.

The four industry associations have recently written to the Government asking for help to import the Covid-19 vaccines after they have found a vaccine supply source in the United Arab Emirates (UAE).

The associations said they need support from the Government to negotiate with the Royal Strategic Partner in the UAE to facilitate import procedures.

The four suggested that the Government and the Ministry of Health either help them negotiate with the UAE firm for the purchase or appoint an eligible Vietnamese importer to do vaccine import procedures.

They expect the Government and the relevant agencies to create the most favorable conditions for them to access the vaccines soon so that workers of their member businesses can get vaccinated, helping maintain production amid the fast spread of the Covid-19 pandemic.

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