News
Over 60% of the Japanese companies doing business in Vietnam reported year-on-year contractions in sales in July-September, according to a recent survey on the impact of COVID-19, when only 20% enjoyed sales increases. Slightly less than 30%, however, expect sales growth in October-December, and 40% project similar developments on a full-year scale in 2022. In contrast, 30% answered they foresee sales decreases in 2022, the survey added, which was conducted jointly by The Japanese Chamber of Commerce and Industry in Ho Chi Minh City (JCCH) and the Japan External Trade Organization (JETRO)’s Ho Chi Minh City office.
Manufacturers that did not stop operating at all in and after July only accounted for 56%, indicating that more than 40% were forced to shut down operations for certain periods of time. Nearly half the businesses reported that their plants ran at 50% of capacity or even less in July-September. Only about 20% said their plant utilization rates were 80% or more in the quarter, but by the time of the survey conducted, the percentage had improved to over 70%. Although the improvement was made via deregulations, it is possible that more than 70% still maintain utilization rates of 80% or higher, the survey concluded.
The survey was conducted on Nov. 9-16 to look into how Japanese businesses in southern Vietnam had been influenced by the coronavirus pandemic as well as how they were doing and what challenges they were faced with at that time. A questionnaire was distributed among 1,041 JCCH members, and answers were given by 344 (154 manufacturers and 190 non-manufacturers). The response rate was, as such, 33%.
