Business community anxious of COVID-19 impacts on prospects

April 28, 2020 | 13:36

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Despite the positive results Vietnam has shown in disease containment, allowing it to start easing social distancing measures, the COVID-19 pandemic has raised concerns about the business environment and prospects among many businesses and industries.

According a survey by CBRE Vietnam in April 2020, 70 per cent of its 180 occupier clients anticipate the business environment to deteriorate in the second quarter of 2020 due to the impact of the COVID-19 outbreak, which has weighed heavily on business sentiment in Vietnam.

43 per cent of respondents anticipated a revenue contraction between 10 to 30 per cent in 2020, while 61 per cent have not been offered relief measures from their landlords. Additionally, 27 per cent of respondents expected landlords to be more accommodative as their businesses have been severely disrupted by COVID-19.

business community anxious of covid 19 impacts on prospects

A broader survey, which reviewed occupiers’ opinions in the Asia-Pacific region, found that the retail industry was significantly impacted by the disease, with many stores suspending their expansion plans.

Such delays in rental decisions will have a lasting impact in the following months. However, 24 per cent of participants in the region still expected revenue growth in 2020, with the IT industry being the most optimistic.

According to Thanh Pham, associate director of CBRE Vietnam, there will be many new trends on business continuity planning that occupiers will focus on in the coming time.

“Companies are now more aware of the importance of evaluating and developing effective office use/allocation strategies. The application of technology will be a leading factor in various industries, including the technology industry. More than half of occupiers in the finance and banking sector are considering splitting up their teams across multiple buildings,” Thanh said.