Covid-19: Firms in Vietnam may lay off 2- 3 million workers in Q2
The Hanoitimes - From January 1 – March 26, over 153,000 people filed claims for unemployment benefits.
In case the Covid-19 pandemic turns more complicated, around 400,000 workers could lose their jobs and other three million will likely be laid off, according to an estimate of the Vietnamese Ministry of Planning and Investment (MPI).
Under a milder scenario in which there are no major changes to the current situation, the MPI expects that over 250,000 workers will become unemployed and 1.5 – 2 million will be furloughed.
The MPI cited findings from a quick survey indicating nearly 10% of over 760,000 operational enterprises in Vietnam were forced to scale down operations in February, and the rate rose to 15% in March.
In the fields directly hit by the Covid-19 pandemic such as tourism, hospitality and catering services, the rate went up to 70 – 80%.
From January 1 – March 26, over 153,000 people applied for unemployment benefits, mostly in the fields of transportation, garment, footwear, tourism, hospitality and catering services, among others.
Vietnam’s GDP growth in the first quarter is estimated at 3.82% year-on-year, the lowest Q1 growth rate in the past 10 years.
Under such a circumstance, the MPI stressed the country’s growth target of 6.8% for this year remains a challenging task.
In the coming months, the MPI expected new risks on the economy to emerge, including (i) uncertainties surrounding the Covid-19 pandemic; (ii) the business community’s capacity to absorb the credit support package worth VND285 trillion (US$12.23 billion); (iii) negative impacts of a slowdown in global trade and production on domestic consumption and enterprises’ investment activities in Vietnam; (iv) restructuring process of state-owned enterprises and public investment; (v) slower growth in foreign direct investment capital inflow; (vi) low credit demand until late second quarter and high pressure on foreign exchange rate.
- Vietnam’s National Assembly convenes semi-annual meeting
- Vietnam ranks higher in Asian Power Index 2020
- Vietnam plays vital role in Japan’s Indo-Pacific policy: PM Suga
- Vietnam closely watches US presidential election: Spokesperson
- Suga arrives in Hanoi in first overseas trip as Japan PM
- Vietnam gets ready to hold ASEAN Summit in mid-November: Spox
- Vietnam truly hopes for early vaccines against Covid-19: Spox
- UPDATE: Japan PM to visit Vietnam on Oct. 18-20
- Japan PM Suga’s Vietnam visit to deepen Extensive Strategic Partnership: Spox
- Transnational economic recovery to be key topic in Japan PM's Vietnam visit
VEPR revises down Vietnam's 2020 GDP growth forecast to 2.8%
Hanoi takes numerous measures to tackle air pollution
Hanoi to expand public transport network in period 2021-2030
Kinh te & Do thi calls for support for victims of historic flooding in central Vietnam
Hanoi completes traffic infrastructure to develop satellite urban areas: Official
Close-up of first train of Hanoi’s second metro line put on rails
Apple partner Pegatron mulls US$1-billion investment in hi-tech projects in Vietnam
Hanoi’s weekend pedestrian streets allowed to reopen from September 18
European investors propose US$1 billion logistics project in Vietnam