FDI businesses adjust production to cope with Covid-19

FRIDAY, 14/02/2020 16:26:31

To overcome the influences of the disease, FDI enterprises have proactively worked out specific plans for production and business.

Due to the effects of Covid-19, workers of Uniden Vietnam Co., Ltd. do not have to work overtime as before

The acute respiratory disease caused by the novel coronavirus (Covid-19) has greatly affected the production and business of many enterprises with foreign direct investment (FDI), especially Chinese ones and those using materials from this country.

Great influences

According to statistics of the Provincial Industrial Zones (IZ) Authority, there are 60 China-invested projects in the province, including 14 from mainland China, 17 from Taiwan, and the rest from Hong Kong, with a total registered capital of over USD1.2 billion.

At present, 56 businesses in IZs are employing 423 Chinese laborers.

Because of Covid-19, many Chinese workers returning home to celebrate the Lunar New Year have not come back to work or returned but are being isolated to prevent the disease.

The disease has also caused difficulties for enterprises using China-originated materials or having factories in China.

Uniden Vietnam Co., Ltd. (a wholly Japan-invested company specializing in producing telecom radio equipment) in Tan Truong IZ has to import many materials from China.

Restrictions on trade with China because of the disease over the past time have affected the supply of materials for the firm. Therefore, the company has arranged its employees to work only during office hours.

Because of the disease, new orders of Mizuho Precision Vietnam Co., Ltd. in Phuc Dien IZ (Cam Giang) also have to be delayed for about one month.

Apart from those impacts, a number of businesses employing Chinese experts and technicians in important positions have been encountering many difficulties with work plans disturbed.

Proactive production

Since the end of the Lunar New Year festival, Yura Vietnam Co., Ltd.'s workers have had to intensify production to support businesses in China
To overcome the influences of the disease, FDI enterprises have proactively worked out specific plans for production and business.

More than 140 employees of Yura Vietnam Co., Ltd. in Phu Thai IZ are working overtime at full capacity.

Yura Group has three companies in Vietnam and 10 in China. Its products are provided exclusively for many major car manufacturers such as Kia and Hyundai.

Due to the effects of Covid-19, the companies in China had to be shutdown. To have enough products for supply to the partners, Yura's enterprises in Vietnam must intensify production to support those in China.

Mizuho Precision Vietnam Co., Ltd. does not import main but only some cheap raw and auxiliary materials from China. For fear that the disease will last long, the business has planned to import raw and auxiliary materials from other markets.

Tongwei Hai Duong Co., Ltd. (a wholly Singapore-invested company specializing in producing animal feed in Lai Cach IZ) usually imports about 20% of production materials which are additives from China.

Since the outbreak of the disease, it has taken more time to control Chinese goods before import to Vietnam; therefore, the company proactively orders goods 20-30 days earlier than before.

In early February, the Department of Industry and Trade issued a document asking enterprises in the province to jointly take many measures to prevent and control Covid-19.

The department also recommended businesses, especially those having export and import activities with China, to proactively consider and adjust production and business plans appropriately, seek new customers and markets, etc.


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