News

Efforts to both maintain production and fight the pandemic

Summary

Unlike enterprises that dissolve or suspend production, many enterprises implementing the "3 in one spot" and "1 route 2 locations" model are facing many difficulties and pressure when Covid-19 cases rise and there is a shortage of raw materials for production, as well as increased input costs.

Updated on : 20-09-2021

Bear the cost

 

According to information from businesses and industry associations including Vietnam Textile and Garment Association, Vietnam Leather - Footwear - Handbag Association, Vietnam Electronic Enterprise Association and Ho Chi Minh City Handicraft and Woodworking Association, in the past three months, the Covid-19 pandemic broke out again and became serious in factories and industrial parks, especially in the southern region, meaning many businesses had to stop production and leave the market.

However, there are also many enterprises implementing the model of "3 in one spot" and "1 route 2 locations", setting up "Green zones" to maintain production activities. Through these methods, enterprises accept cost increases, instead of closing the factory, the production and supply chain will be broken, workers lose their jobs and have no income, leading to many consequences.

Mr. Le Xuan Tan, Director of Hanh Phuc Wood Co., Ltd (Happy Furniture), said that the company has implemented the "3 in one spot" model with extremely strict controls. For production areas, accommodation, rest and hygiene areas, workers are arranged separately.

"For the toilet and bath area, we built 55 bathrooms for about 300 workers, an average of six people use a bathroom, and no one can use it and go to another area. We also set up three layers of fences to protect the factory, the dining area, and the workers' rest area with the spirit of 'no one to come in and out’. Before putting workers into production according to the ‘3 in one spot’ model, we all do quick tests, PCR tests, some people are tested up to five times," Mr. Tan said.

However, this is only a temporary solution and can only be maintained for about a month at most. Mr. Doan Vo Khang Duy, Vice Chairman of Ho Chi Minh City Mechanical and Electrical Enterprise Association, said that companies and factories are only designed to serve production activities, not housing or living functions for workers. To meet the requirement of "3 in one spot", many businesses have to expand and make the most of the area so that employees can stay in both production and isolation in place, but after more than two weeks, there have been problems of safety, hygiene and psychological instability among workers.

According to Ms. Tran My Huong, Director of Sales Department, Zhong Sheng Candle Co., Ltd. (Southeast Industrial Park), the cost of maintaining "3 in one spot" is currently too high, because businesses have to equip living facilities, take care of eating and drinking for three meals a day and periodic testing for Covid-19 for employees. Specifically, from July 14, the company started deploying 300 workers to stay at the factory, each day costing VND15 million to buy food and seven days of Covid-19 testing with the amount of VND370,000 per person. This is a burden that makes businesses almost exhausted in the context of limited business efficiency. Currently, due to the influence of the pandemic, the supplier is blocked and isolated, so the company does not have packaging materials for production, while late orders are subject to contract penalties. For a week, the company has had to reduce the number of employees working at the factory to 87 people.

Pressure of infections

Mr. Quang Tan Long, Head of Import-Export Department of Hai My Co., Ltd., said that although production follows the "3 in one spot" model, in order to maintain production, the company currently only executes available orders and is in moderation mode. Many export orders have had to delay delivery to August, however, the delivery time is still uncertain.

If the pandemic lasts for a long time and production is interrupted, the risk of losing market share is high. Currently, the company is trying to get goods imported from ports to avoid storage, but moving to the port through quarantine checkpoints is difficult, the cost of quick tests for employees every three days is very expensive.

Ms. Ly Kim Chi, Chairman of the Food and Food Association of Ho Chi Minh City, said that currently 70% of businesses under the association are having to sell to cover losses and break even because the price of input materials has increased. If the implementation of "3 in one spot" lasts more than a month, for businesses with 300-1,000 workers, a series of problems will occur. Accordingly, each director of an enterprise must both direct business and production while doing mass mobilization, appease and encourage the workforce.

On the other hand, businesses implementing the "3 in one spot" model are facing many difficulties and pressures when worrying if the company has a case of Covid-19. In fact, there have been about 150 enterprises in Binh Duong, nine enterprises in Tien Giang and a number of enterprises in Dong Nai with many cases of Covid-19 and they had to suspend production.

Thus, vaccination is the best solution to handle production activities, helping workers feel secure to work to maintain production. The Ho Chi Minh City Handicraft and Woodworking Association currently has about 400-500 member enterprises. Enterprises registered about 50,000 workers who need to be vaccinated. The association is actively contacting the authorities as well as service businesses so that when there is a vaccine source, it will quickly vaccinate the workforce.

Dr. Tran Hoang Ngan, Director of the Ho Chi Minh City Development Research Institute, said that more than 2,800 businesses in Ho Chi Minh City have been dissolved and 11,500 have ceased operations, which are maintaining production in safe conditions for pandemic prevention such as "3 in one spot” and “1 route 2 locations” currently facing many difficulties.

Accordingly, solutions to prevent the spread of the disease are social security issues and rescuing businesses. Dr. Tran Hoang Ngan said that it is necessary to divide into three groups to have appropriate solutions: The first is the closed businesses, the second is the temporarily closed business, the third is the operating business.

For each different group, there must be a different solution. With operating businesses, the goal is to save to the end. Because these businesses are accepting operations in conditions of loss, accepting sacrifices to maintain operations, they must have their own solutions.