5,600 enterprises resume operation in HCMC

According to the Ho Chi Minh City Department of Industry and Trade, around 5,600 enterprises have resumed their operations this year, an increase of 95 percent compared to the same period last year. 

Since the Covid-19 pandemic outbreak, more than 150,000 enterprises in Vietnam have been forced to halt their business operation and go bankruptcy. Of which, Ho Chi Minh City had more than 30,000 enterprises. 

The enterprises have step-by-step resumed their production activities showing a positive signal. However the resumption of production is unstable as supply chains continue to break, leading to higher costs for raw materials.

(Illustrative photo: SGGP)
Particularly, the prices of steel, plastic, and construction materials have increased by 30 percent to 40 percent compared to the end of 2020. For this reason, many businesses have been forced to halt operations and wait until the cost reduction.

Currently, many domestic enterprises seek newer markets to find sources of raw materials from foreign markets; however, they are also struggling with many difficulties due to the high cost of logistics transportation.

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