The wave of business bankruptcy is coming closer
This is one of the focus issues recently due to the impact of the Covid 19 pandemic on businesses that are too heavy. Many businesses have large fixed costs, many factories, many workers have weakened and are at risk of bankruptcy.
Highlights in early March have to mention the bankruptcy of the largest airline in Europe Flybe (UK). This may be the beginning of the bankruptcy of many aviation enterprises in the near future.
Not only the aviation industry is facing a big risk of bankruptcy, but recently, on March 27, 2020, the satellite Internet service provider OneWeb (an enterprise with SoftBank invested US $ 2 billion). ) had to file for bankruptcy.
In Vietnam, Saigon Plastic Packaging Joint Stock Company (SPP) has recently announced its decision to open bankruptcy procedures. According to a survey of the Private Economic Development Research Board at the beginning of March, if the Covid 19 epidemic lasted for six months, 74% of Vietnamese enterprises participating in the survey said they would go bankrupt.
Many workers lose their jobs, facing the risk of losing their jobs
Following the bankruptcy trend of the enterprise, many workers lost their jobs. In the third week of March, the number of applications for unemployment benefits in the US soared to 3.3 million, 11.6 times the number of the previous week.
In Vietnam, many businesses have cut their staff, laid off workers without unpaid work, rotated or stopped their business so they can survive the Covid 19 epidemic.
Facing that situation, the State Bank has implemented a support package of VND 250,000 billion to reduce loan interest rates and restructure debts for businesses. It is necessary to ensure that banks will quickly deploy into reality before enterprises cannot continue production and must declare bankruptcy.
Along with that, the government also supports businesses by exempting and reducing taxes, suspending social insurance, etc.
Many businesses quickly adapt by shifting production to some essential industries during the epidemic, switching distribution channels to e-commerce, etc.