Enterprises in the Industrial Zones face many difficulties due to COVID-19 epidemic

(binhthuan.gov.vn) Over the years, the production activities of enterprises in the industrial zones (IZs) in the province have had an average annual growth of about 10-12%. However, in the first 6 months of 2020, due to the impact of the long-lasting COVID-19 epidemic, the operation of enterprises in the IZs in the province has been showing the sign of declining and shrinking production scale.

Since the COVID-19 epidemic broke out and spread globally, the activities of enterprises in the IZs were also affected, especially the sources of raw materials, input materials, markets of consumption, labor and employment. In particular, the businesses that have been strongly affected are leather shoes, garment, wooden products, packages, and export of agricultural products. The shortage of raw materials has made the enterprises in the IZs to narrow their production activities. According to the evaluation of the Provincial Industrial Zones Authority, from the second quarter of 2020, enterprises in the IZs will have to cut part of their labor. By the end of 2020, it is expected to reduce by 30%, equivalent to 3,000 - 3,500 employees.

The Provincial Industrial Zones Authority added that, in the first 06 months of 2020, some indicators on production and business activities decreased over the same period, namely: revenue was estimated at 1,520 billion dong, decreased by 21.25% over the same period in 2019, reaching 28.68% of the year plan; export turnover was estimated at 38 million USD, decreased by 5.5% over the same period, reaching 33% of the year plan; national budget contribution was estimated at 35.5 billion VND, decreased by 10.13% over the same period, reaching 37.78% of the year plan.

Since the beginning of the year, many investors have come to do investment research in the IZs. However, the impact of COVID-19 epidemic has lowed the investment attraction. In the first 6 months of 2020, it is expected to attract only 02 new investment projects with the investment capital of 33.866 billion VND and land area of 2.9 hectares. In addition, there are 03 expanded investment projects with additional capital of 95.52 billion VND and 5 million USD. The accumulated investment attraction from the beginning of the year is 129.39 billion VND and 05 million USD, reaching 14% of the investment capital attraction plan in 2020.

In order to solve difficulties for the enterprises, the Provincial Industrial Zones Authorities is intensifying the review and evaluation of the impact of COVID-19 on the operation of businesses and employees. On that basis, we will propose solutions to stabilize the production and boost up the business operation of the enterprises. At the same time, we will make good coordination with departments, agencies and localities to support businesses to overcome difficulties caused by COVID-19 epidemic. At first, we will deploy the support package to employees and workers in the Izs affected by COVID-19 epidemic. Ensuring the right beneficiaries and not being exploited or profiteering the policies./.

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