Slide Mechanisms of Impact - Desklib

Slide Mechanisms of Impact
After hearing about the detrimental impacts of covid 19, I bet you all wonder what is
1. Mechanisms of Impact
a. Operational status
Firms are closed permanently or temporarily by government mandate, reduction in
demand and supply or the decrease in the labor workforce.
This is because countries with the high mortality rate experience labor reduction.
However, in Vietnam, the mortality rate is low, and most of the victims are retired.
Therefore, this does not sharply affect Vietnamese firms
b. Demand and Product market
The falling in demand is causes by 3 main issues: payment delay, cancellation
of existing orders and the decrease in the number of new orders.
However, in some specific retail categories such as facemasks and hand sanitizers,
there’s an increase in demand.
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c. Supply and Input market
Not only does the input cost raise but companies also face a critical material
shortage. One reason for this is that suppliers are also affected by COVID 19 so their
production and logistic operation can be disrupted.
(As you can see, most firms (38%) ...)

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d. Access to finance and liquidity
Many companies face liquidity issue such as cash flow shortage and reluctant to invest
because of uncertainty and fear of interest rate and repayment risk.
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II. Solutions chance for Vn to show the world their strength
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1. Firms’ adjustments
Multiple economic shocks from the COVID pandemic heavily influenced enterprises’
implications for employment and operating models. They are forced to down-size as well as
incorporate more digital platforms and solutions into their business models:
Regarding adjustments in employment: From Jan 5 to April 15, approximately 1
million job losses in operating firms (both permanent and temporary) However, true

employment losses are likely larger due to the bankruptcy and closure of small and informal
businesses
Despite these, firms have taken temporary measures to retain their employees. As
depicted in figure 5, in June: 15% firms lay off workers, 23% reduce working hours and
employees’ salary 26% granted leaves (only under half with pay). A small proportion of
enterprises (8%) still manage to recruit more employees
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Regarding increase in digital transformation: Almost half of the firms increase the use
of digital platforms. others choose to invest in digital solutions or repackage their product mix
SMEs prefer front-end business functions (sales and payment methods) easier and less
costly to implement
Large companies utilize complex functions (production planning and supply chain
management)
Investments in Health Protocols: Almost every firm >< low effectiveness