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Covid-19 hurts the city's businesses

By DA NANG Today / DA NANG Today
February 18, 2020, 14:31 [GMT+7]

China's novel coronavirus (Covid-19) outbreak is affecting many manufacturers and traders in Da Nang because their major partners are from China.

Workers at the city-based Hoa Tho Textiles and Garments Company
Workers at the Hoa Tho Textiles and Garments Company

According to the Da Nang Department of Industry and Trade, Da Nang is now home to thousands of manufacturers who play an important role in increasing the city’s export sales.

The city's key export items include textiles and garments, seafood, rubber, wooden products, furniture, handicrafts, engines, electrical equipment, and electronics.

Da Nang is exporting its products to more than 120 countries and territories worldwide. The city’s major importers include Japan, the USA and European countries.

However, many businesses operating in the city depend on imported materials from China. The Danameco Medical Joint Stock Corporation is a typical example.

In order to ensure the sufficient supplies of face masks amid the growing concerns over Covid-19, more than 400 workers of two medical device plants of the Danameco Medical Joint Stock Corporation in Da Nang and Quang Nam Province have been worked 3 shifts a day over recent weeks.

Workers of the medical device plants of the Danameco Medical Joint Stock Corporation in Da Nang and Quang Nam Province are working overtime amid the coronavirus outbreak
Workers of the medical device plants of the Danameco Medical Joint Stock Corporation in Da Nang and Quang Nam Province are working hard amid the coronavirus outbreak

Mr Vo Anh Duc, Business Director of the Company, said his company has been facing some difficulties in sourcing raw materials to produce filter which is the most important part of the masks. The main reason is that the company’s input materials to produce filters are from China which has been heavily affected by the epidemic.

He, therefore, added that his company is seeking new sources from such countries as Thailand and India to ensure smooth production and sale.

Mr Ha Ngoc Thong, Director of the A Chau Architecture and Trading Co. Ltd., said the global economy, including Viet Nam, would be in trouble, if the epidemic continues for the next one or two months.

He, however, noted this was an opportunity for Vietnamese businesses, including Da Nang ones, to seek new raw material sources from such countries as India, South Korea, Japan, and the USA in a bid to reduce their dependence on China.

Mr Duc also highlighted the important role of the city-issued preferential policies and loans in helping businesess, especially small and medium-sized enterprises, maintain operations amid the COVID-19 situation.

By KHANH HOA - Translated by MAI DUNG

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