Many companies in Da Nang are already suffering from the impact of coronavirus. The city’s textiles and garments firms are likely to be much affected by the epidemic.

Workers at the 29 March Textiles and Garments Company

Mr Nguyen Huu Vinh, the Import-Export Manager of the 29 March Textile and Garment JSC, said the proportion of his company’s imports from China accounts for about 40%.

Most recently, his company has prepared for orders from stockpiled raw materials because their Chinese suppliers have their operation halted. If the outbreak still persists in China, his company is going to run out of raw material.

Mr Vinh’s company, therefore, is forced to source raw materials from domestic localities, and such foreign countries as India, Thailand and European countries in order to maintain their operation.

Apart from textiles and garments industry, some of the city’s exporters involving such items as engine and electronic components, and rubber products, have also faced the challenges.

A representative from the Da Nang Rubber Company (DRC) remarked the proportion of the company’s input materials from China makes up for up to 30%. To date, the company has not yet received an official notice from its Chinese suppliers about the exact time for their new batches.

Most notably, the coronavirus outbreak has disrupted the education of millions of pre-school to university students across the city. School closures have required parents to stay home from work for many weeks. As a result, many businesses have faced a serious shortage of workers.

According to the Da Nang Department of Industry and Trade, the city's export earnings are likely to decline by 20% to stand only 285 million USD in the first quarter of this year. Meanwhile, the imports are expected to go down by 23.5% to hit 230 million USD during the same period.

By KHANH HOA - Translated by MAI DUNG