HCMC firms have difficulty resuming operations

Enterprises in HCMC that have resumed business said they are still facing high production costs, difficulties in inter-provincial transport and labor shortages.

A survey of 100 enterprises both inside and outside industrial parks by the Southern Institute of Social Sciences this month found that 44 percent plan to resume full production, 29 percent plan to operate at close to full capacity and the rest are adopting a wait-and-see policy.

More than 46 percent said they are facing difficulties, especially high production costs since they still have to take anti-Covid measures and a shortage of workers.

Some 35 percent said their biggest difficulty is being unable to repay debts.

Around 35 percent said they have benefited from the electricity tariff reduction, 19 percent from the labor union fee waiver, 18 percent from loan rollover and interest reduction, and 9-15 percent from other forms of assistance.

Many wanted authorities to announce detailed policies for economic recovery, clearly define criteria and conditions for resuming business activities and inter-provincial travel, and loosen pandemic-related restrictions.

Nguyen Van Thu, general director of GC Food Company, said anti-Covid regulations should be loosened, especially for fully vaccinated people, so that workers could travel easily.

Labor-intensive businesses said some new regulations such as one toilet for every 10 employees are not feasible.

Dang Nguyen Anh, head of the Vietnam Academy of Social Sciences, said HCMC’s safe production criteria are still inclined toward a ‘zero Covid’ approach, which make compliance with them impossible for businesses.

Tran Van Khuyen, Party committee secretary of the city’s Hoc Mon District, said 480 local businesses have resumed operations since Oct. 1, and many are worried about the high cost of Covid testing and lack of resources.