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Monday, July 22, 2024

Stressful economic challenges

By Hung Le

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Stubborn economic difficulties have led large numbers of small and medium-sized enterprises (SMEs) to exit the market. Meanwhile, those staying afloat are also struggling on the verge of closure. The lack of policy support and the burden of high interest rates are increasing the possibility of more SMEs going bust. Struggles across sectors Tran Hoai Huu, director of Gia Nhien Company, said economic woes have led to a sharp decline in new orders for their handcrafted wooden sailing products. Prior to the Covid-19 pandemic, the company’s annual sales reached around US$1.2 million. However, new orders have plunged by up to 70%. The Russia-Ukraine military conflict and inflation in the U.S. and Europe have compounded the company’s problems, making business operations increasingly difficult. “In light of these difficulties, we had to significantly reduce our workforce, retaining only about 30% to keep things afloat,” Huu explained. For nearly three years, the addition of new customers has been minimal. Challenges persisted, financial strains took a toll, but aid packages remained out of reach for Gia Nhien. Similar challenges hit a textile company based in HCMC, which specializes in exporting garments to the U.S. and Europe. Orders began dwindling in June 2022, dropping by […]
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