The plastics industry is suffering from low purchasing power due to COVID-19

The weak demand for consumption in the domestic market is likely due to the fact that consumers limit travel, which greatly affects the purchasing power, as well as a significant impact on the jobs of workers, the costs that businesses must bear if prolonged translation of COVID-19.

Chairman of the Vietnam Plastic Association (VPA) Ho Duc Lam has just sent a letter to the Ministries of Finance, Industry and Trade, the Vietnam Chamber of Commerce and Industry to propose support to plastic enterprises during the next COVID-19. Progress is very complicated.

According to Mr. Lam, China is the fourth largest import market for Vietnam's plastic products, with a turnover of US $ 148.7 million, accounting for 4.3% of the total export turnover of plastic products.

Currently, many enterprises in the plastic industry import input materials, chemicals, and additives, mostly from China.

If the situation persists until the end of Q1, there will be no raw materials for production, affecting the progress of export orders of enterprises. At the same time, it affects the jobs of workers and the costs businesses incur during the time without orders.

 

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"We suggest inter-ministries to propose to the Government and the State Bank to consider mechanisms to support businesses in response to the impact of the epidemic, allowing for debt freezing, debt rescheduling, loan interest rate reduction, and loan structure. , delaying the tax payment ... in order to help some businesses have difficulty in production and business ", Mr. Lam commented.

According to VPA's assessment, the complicated developments of COVID-19 not only affect the export production activities of enterprises in the plastic industry in the coming time, but furthermore, consumption demand in the domestic market. It will also be difficult to recover as quickly as expected by businesses.

Source: https://tuoitre.vn/nganh-nhua-dieu-dung-vi-suc-mua-thap-do-covid-19-20200214171435804.htm

 

 

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