Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Foreign-invested enterprises (FDI) in Vietnam have beenmaintaining production despite difficulties caused by the COVID-19 outbreakwhile preparing plans to recover after the pandemic ends.
Likedomestic enterprises, the disruption of China’s manufacturing network andfalling demand from foreign partners have forced foreign-invested firms toscale down operations.
Denmark-investedSonion Vietnam Co Ltd, an electronics manufacturer in Saigon Hi-Tech Park(SHTP) in HCM City, has re-organised production by reducing operatingcapacity and trying to decrease the number of defective products.
Accordingto Jason King, Sonion Vietnam’s general director, the pandemic impacting thecompany is inevitable but it will quickly restore full operation and compensatefor the productivity shortage as soon as the Government brings the outbreakunder control.
Havingpreviously suspected the Vietnamese Government’s outbreak control measureswere overreacting, Kim Dong Hwan, general director of Deayoung ElectronicsVina, now strongly believes Vietnam will successfully control the pandemic andproduction will soon recover.
Whilethe shortage of inputs has cut production and postponed plans forrecruitment and personnel training, Hwan said the company still encouragedemployees to work and focus on improving productivity and avoiding defectivegoods to ensure the number of orders.
“Productionwas reorganised to focus on the multi-purpose production process, improvingfacilities to enable joint production and utilising the best availableresources,” Hwan said, adding that the company was also seeking new markets andpreparing alternative plans for markets seriously affected by the outbreak.
Afterthe pandemic, Deayoung Electronics Vina will prioritise research anddevelopment of products to serve the global market as demand for electroniccomponents will surge after the world manufacturing industry resumes operation,he said.
KimYun Yeop, deputy general manager of Samsung HCMC CE Complex, is also optimisticabout new opportunities after the pandemic. While most Samsung factoriesglobally are affected by the virus outbreak, Samsung’s factories in Vietnamhave maintained stable production, though some workers at one factory have beenquarantined due to one reported infection.
“Atpresent when the market demand has decreased, it’s favourable to implementsocial distancing without affecting orders. We’ve tried to take maximummeasures to protect the workers’ health, keep stability so that after thepandemic is over, we will quickly increase the global market share which isaffected by the outbreak,” Yeop was quoted as saying on baochinhphu.vn.
LeBich Loan, deputy director of the SHTP Management Board, said the parkauthority was working with companies to tackle their problems and facilitatetheir production after the pandemic.
“Afterthe pandemic is over, production demand will increase sharply and workers willhave to work overtime. We have proposed the Prime Minister extend overtimehours for workers,” Loan said.
Accordingto HCM City’s Department of Labour, War Invalids and Social Affairs, businessesneed to prove the need to increase working hours due to the sudden increase inorders. However, in the current context, this could be allowed because of forcemajeure reasons, she said.
Despitethe grim situation, the production value of the foreign direct investment enterprisesin SHTP in the first quarter exceeded 4 billion USD, up 19.3 percent year-on-year,equivalent to 20 percent of theyearly plan.
Upto now, no job losses have happened among more than 45,600 employees at theHi-Tech park, though about 1,950 employees have had to take leave due to workrotations or raw material shortages. Loan said businesses had reached anagreement with workers to let them return to work right after thepandemic.
Meanwhile,FDI enterprises in Dong Nai province are also manoeuvring to maintain productionand apply measures to prevent and control the outbreak while preparing torestore and expand production to compensate for their losses after the pandemicis over.
Arepresentative of Hyosung Vietnam Co Ltd, the biggest FDI enterprise in theprovince with total capital of nearly 1.5 billion USD, said since early thismonth, the company’s employees had been working on rotation. Though somefactories had to halt production, it was expected that at the beginning of thethird quarter, the pandemic would be put under control so production and exportactivities would recover.
WuMing Ying, chairman of Taiwan Business Association in Dong Nai province,said: “About 60 percent of Taiwanese enterprises in Dong Nai said they wereaffected by the COVID-19 pandemic. However, enterprises only reduce capacityand working hours and still maintain production. When the pandemic iscontrolled in the world, they will restore production and expand exports.”/.
Likedomestic enterprises, the disruption of China’s manufacturing network andfalling demand from foreign partners have forced foreign-invested firms toscale down operations.
Denmark-investedSonion Vietnam Co Ltd, an electronics manufacturer in Saigon Hi-Tech Park(SHTP) in HCM City, has re-organised production by reducing operatingcapacity and trying to decrease the number of defective products.
Accordingto Jason King, Sonion Vietnam’s general director, the pandemic impacting thecompany is inevitable but it will quickly restore full operation and compensatefor the productivity shortage as soon as the Government brings the outbreakunder control.
Havingpreviously suspected the Vietnamese Government’s outbreak control measureswere overreacting, Kim Dong Hwan, general director of Deayoung ElectronicsVina, now strongly believes Vietnam will successfully control the pandemic andproduction will soon recover.
Whilethe shortage of inputs has cut production and postponed plans forrecruitment and personnel training, Hwan said the company still encouragedemployees to work and focus on improving productivity and avoiding defectivegoods to ensure the number of orders.
“Productionwas reorganised to focus on the multi-purpose production process, improvingfacilities to enable joint production and utilising the best availableresources,” Hwan said, adding that the company was also seeking new markets andpreparing alternative plans for markets seriously affected by the outbreak.
Afterthe pandemic, Deayoung Electronics Vina will prioritise research anddevelopment of products to serve the global market as demand for electroniccomponents will surge after the world manufacturing industry resumes operation,he said.
KimYun Yeop, deputy general manager of Samsung HCMC CE Complex, is also optimisticabout new opportunities after the pandemic. While most Samsung factoriesglobally are affected by the virus outbreak, Samsung’s factories in Vietnamhave maintained stable production, though some workers at one factory have beenquarantined due to one reported infection.
“Atpresent when the market demand has decreased, it’s favourable to implementsocial distancing without affecting orders. We’ve tried to take maximummeasures to protect the workers’ health, keep stability so that after thepandemic is over, we will quickly increase the global market share which isaffected by the outbreak,” Yeop was quoted as saying on baochinhphu.vn.
LeBich Loan, deputy director of the SHTP Management Board, said the parkauthority was working with companies to tackle their problems and facilitatetheir production after the pandemic.
“Afterthe pandemic is over, production demand will increase sharply and workers willhave to work overtime. We have proposed the Prime Minister extend overtimehours for workers,” Loan said.
Accordingto HCM City’s Department of Labour, War Invalids and Social Affairs, businessesneed to prove the need to increase working hours due to the sudden increase inorders. However, in the current context, this could be allowed because of forcemajeure reasons, she said.
Despitethe grim situation, the production value of the foreign direct investment enterprisesin SHTP in the first quarter exceeded 4 billion USD, up 19.3 percent year-on-year,equivalent to 20 percent of theyearly plan.
Upto now, no job losses have happened among more than 45,600 employees at theHi-Tech park, though about 1,950 employees have had to take leave due to workrotations or raw material shortages. Loan said businesses had reached anagreement with workers to let them return to work right after thepandemic.
Meanwhile,FDI enterprises in Dong Nai province are also manoeuvring to maintain productionand apply measures to prevent and control the outbreak while preparing torestore and expand production to compensate for their losses after the pandemicis over.
Arepresentative of Hyosung Vietnam Co Ltd, the biggest FDI enterprise in theprovince with total capital of nearly 1.5 billion USD, said since early thismonth, the company’s employees had been working on rotation. Though somefactories had to halt production, it was expected that at the beginning of thethird quarter, the pandemic would be put under control so production and exportactivities would recover.
WuMing Ying, chairman of Taiwan Business Association in Dong Nai province,said: “About 60 percent of Taiwanese enterprises in Dong Nai said they wereaffected by the COVID-19 pandemic. However, enterprises only reduce capacityand working hours and still maintain production. When the pandemic iscontrolled in the world, they will restore production and expand exports.”/.
VNA
