06:00 | 07/10/2021 Economy
(VEN) - Foreign-invested companies are facing many difficulties due to the impact of the Covid-19 pandemic.
|Mass vaccinations are essential to ensure business continuity|
Due to the impact of the Covid-19 pandemic, more than 85,000 businesses have withdrawn from the market, while tourism activities are completely frozen. The trade deficit has increased strongly, reaching US$3.71 billion in the first eight months of the year.
Foreign direct investment (FDI) pledges to Vietnam in the first eight months of 2021 reached US$19.12 billion, a drop of 2.1 percent compared to a year ago. This figure is relatively positive given the strong decline in global investment, demonstrating Vietnam’s attractiveness to international investors.
Due to the resurgence of Covid-19 in the country, domestic businesses and foreign-invested companies have implemented the “three-on-site” model - working, eating and sleeping at the worksite - and the “one route, two destinations” model. These models have proven effective, helping enterprises maintain partial trade and production activities.
However, the “three-on-site” model has increased costs significantly because employers need to pay for worker accommodations and meals. In addition, there is no specific classification and instruction for each subject.
Dr. Phan Huu Thang, former director of the Foreign Investment Agency (FIA), said localities do not provide specific support for foreign-invested companies. In addition, pandemic-hit provinces have allowed workers to return to their hometowns. As a result, enterprises are short of workers and cannot recruit additional staff due to social distancing and travel restrictions.
Support needed to promote recovery
Phan Huu Thang said localities must provide support for foreign-invested companies during the pandemic.
At an online meeting with southern provinces on Covid-19 prevention and control measures, as well as solutions to ensure people’s lives and develop trade and production activities, Prime Minister Pham Minh Chinh also emphasized the need to seek effective solutions in this regard.
Local governments need to consider proposals to overcome difficulties for foreign-invested companies and domestic businesses, including reviewing the “three-on-site” model and the “one route, two destinations” model. In addition, there should be clear regulations on close coordination between localities and state management agencies to ensure the smooth circulation and transportation of goods.
Localities need to be active in classifying essential businesses and factories during the pandemic based on their production scale and impact on local socioeconomic development. Support needs to be provided for leading and essential businesses to maintain the overall growth of the local economy.