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Software production enterprises manage to 'keep the head above water' amid COVID-19 crisis

By DA NANG Today / DA NANG Today
September 07, 2021, 09:54 [GMT+7]

The complicated developments of COVID-19 has adversely affected the operation of many manufacturing industries, including software production. Despite having made response in terms of human resources and working methods in accordance with reality, it is still difficult for businesses to avoid certain influences.

All companies have made plans to adapt themselves to the current COVID-19 situation. Unitech employees are at worth with the strict compliance with pandemic prevention and control. Photo: THU HA
All companies have made plans to adapt themselves to the current COVID-19 situation. Unitech employees are at worth with the strict compliance with pandemic prevention and control. Photo: THU HA

Actively adapting to COVID-19 impacts

As one of the city-based companies specialising in software outsourcing for foreign countries and developing software for digital transformation in State management agencies in many provinces and cities Viet Nam-wide, the Unitech, located in Hai Chau District, has encountered some pandemic-triggered obstacles, especially the inability to meet with partners, survey public request and conduct technology transfer to its customers as before.

It is forecasted that the company's revenue this year will be lower than as initially expected, but it still secure a rise of 5 - 10% as compared to 2020.

Mr. Dang Ngoc Hai, General Secretary of Da Nang Software Business Association cum Director of the Da Nang branch of the Axon Active Viet Nam Co., Ltd, acknowledged that the prolonged pandemic has caused significant damage to this company’s production and business plans.

However, businesses producing software and digital content as a whole have been maintaining their operations well and they were less directly affected than other industries.

At Axon Active Vietnam company, production activities are still kept on track, whilst a stable workload for more than 500 employees across the country was ensured.

“Although some of our customers have reduced orders due to the negative impact of the global pandemic situation in the past time, generally observed, no sharp decrease in workload was reported”, said Mr. Hai.

Mr. Nguyen Xuan Huy, General Director of Datahouse Asia Consulting Joint Stock Company headquartered in Thanh Khe District, analysed that COVID-19 has entailed many risks. If one of the workers in enterprises is infected with COVID-19, it will affect the stability of human resources and the development of projects as well. Despite allowing employees to work from home, labour productivity will also be affected. In addition, firms must bear other expenses such as office rental charges, and the cost of hiring more outside personnel and collaborating with other companies to ensure the product quality.

COVID-19 pevention and control indentified as top priority

Like others, Unitech has always strictly complied with the municipal administration-madated regulations on COVID-19 prevention and control. Most employees now work from home.  Only a few (about 10%) have to be present at the company’s headquarters to fulfil work requirements. Employees working from home are facilitated to connect to the company’s systems to get work done in an effective manner.

Meanwhile, at the Datahouse Asia, for more than a month now, 100% of the employees have been working from home, so the workforce has not changed much. This company has strived to keep its staff on the stable payrolls and support them to cover parts of extra costs of electricity and internet consumption when they have to work from home.

As for the Da Nang branch of the Axon Active Viet nam - Da Nang branch, the company has maintained a minimum number of employees working offline at the office to support the urgent needs made by customers. Meanwhile, other activities are managed through online channels with flexible working methods, with virtual discussions with international customers.

Despite facing many difficulties, those working in the field of software production believe that, given the advantage of working online, large and medium-sized enterprises specialising in software outsourcing for foreign markets will be less affected by COVID-19 thanks to a stable customer base and workload. Small ones will be more sensitive and affected.

However, the coronavirus-sparked challenge is also an opportunity for businesses to assert their bravery. Mr. Dang Ngoc Hai assessed, the software industry is one of the lucky manufacturing industries have still maintained their operations and revenue growth during this tough time.

Most software companies has kept their production and business activities ‘in full swings’, made significant contributions to the city’s GRDP, and ensured job security with high incomes for workers.

“We believe that the software industry will continue to record many growth opportunities to become one of the key economic sectors”, said Hai.

Reporting by THU HA – Translating by A.T

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