What should businesses do to save themselves in COVID-19 epidemic?

Before the complicated epidemic COVID-19, enterprises should look for ways to operate the company without interruption, in particular, the raw materials production and human resources forces.

COVID-19 epidemic has a major impact on the processing and manufacturing industry; Along with that is the negative impact on the manufacturing industry, exports using a lot of raw materials, materials and accessories originating from China. It is forecasted that industrial production activities will still face difficulties until the second quarter of 2020.

Mr. Trent Davies, International Business Manager at Consulting firm Dezan Shira & Associates Vietnam, said that the biggest concern of enterprises is production materials and labor resources. In China, the lack of manpower is really a big problem because the COVID-19 epidemic causes many cities to close and movement is not allowed. Production activities were delayed for a long time, negatively affecting the material supply.

Trent said that this is the time for businesses to look at the effects of the epidemic, make a change in planning and be prepared for bad situations. A risk assessment is now required, including searching and contacting suppliers and customers; supplying production materials and managing labor resources.

Businesses need to be proactive in overcoming difficulties, saving themselves first, actively seeking alternative markets, diversifying output markets as well as input sources, reducing dependence on markets. Chinese school.

For example, multinational companies are moving production activities from China to Vietnam, thanks to the advantage of favorable location, low cost, abundant manpower, and increased domestic market. wide. There is a great opportunity when Vietnam has officially signed the EVFTA Agreement, opening more opportunities for many Vietnamese goods and services to enter the demanding but high-quality market like Europe.

Vietnam became the investor's choice location in the trend of moving production from China

Komatsu construction equipment manufacturer has purchased components and spare parts from many factories inside and outside China. The process of moving parts production to locations such as Japan and Vietnam. Sportswear maker Asics is seeking to shift production to Vietnam or Indonesia, which previously added additional manufacturing to its factory in Wuhan.

In short, businesses need to properly assess market needs, production capacity and exploitable resources to access new markets; At the same time, promoting the application of technology and investment in research and development of products of higher economic value. When businesses are active and flexible in adapting to risks, the level of damage will be lower.