Enterprises look to enhance links to prevent future disruptions to supply chains

Illustrative photo. (Source: VNA)

The survey was conducted by VBCSD to explore how domestic enterprises are doing amid the pandemic and based on this, it made recommendations for the Government to develop a medium- and long-term response strategy associated with the National Action Plan to implement the 2030 Agenda for Sustainable Development Goals (SDGs).

Most enterprises have posted sharp declines in revenue as COVID-19 has damaged exports and triggered a shortage of materials, said VBCSD Vice President Nguyen Quang Vinh, who is also Secretary-General of the Vietnam Chamber of Commerce and Industry (VCCI).

Enterprises must therefore prepare new suitable business plans that integrate urgent short-term issues with medium- and long-term strategies, he said, adding that after the pandemic ends, global supply chains will soon be restructured and repositioned.

The survey also revealed that 31 percent of respondents said they have focused or will focus more on the domestic market and reduce dependency on certain foreign markets.

Vinh added that many respondents said they will accelerate e-commerce and digital transformation to become less dependent on traditional markets and conventional ways of doing business.

Their first task, however, is to cut costs and postpone investments in non-essential items.

VBCSD President Vu Tien Loc said a sustainable development strategy would benefit businesses in the long run as it would help them strengthen their resilience in any circumstance, particularly in the face of COVID-19.

Vinh suggested enterprises diversify their suppliers rather than prioritising the boosting of efficiency. They should establish a network of short-term suppliers in addition to those with long-term contracts and at the same time, develop risk management scenarios for their supply chain and adopt more flexible and streamlined production plans.

The VBCSD also proposed the Government develop a legal framework to facilitate sustainable development. It should formulate and implement plans for improving sustainable corporate governance in 2021-2025 and the national programme to support the business community in promoting the circular economy in Vietnam from 2021-2030.