The Impact of Covid-19 on the Top 5 Industries in Vietnam

Tourism is considered one of the most affected industries by the COVID-19 pandemic. With the virus spreading, all recommendations restrict people from going to crowded places to reduce the risk of exposure and cross-infection. This has led to the postponement or cancellation of all travel plans, both domestically and internationally. The number of tourists has significantly decreased, including both domestic and international visitors to Vietnam. According to statistics, in the first three months of 2020, the number of Chinese tourists visiting Vietnam accounted for only about a third of the total number of foreign tourists - a sharp decline compared to the same period in previous years. Numerous tours have been canceled, and hotels have suspended operations due to a lack of guests. Famous tourist destinations in Vietnam such as Sapa, Da Nang, Nha Trang, Da Lat, etc., are experiencing an unprecedented drop in visitors. This, in turn, has resulted in a significant decline in revenue from the tourism sector, impacting Vietnam's economy. The Covid-19 pandemic has had a considerable impact on one of the country's key service industries.

Alongside the tourism and hotel industry, events have also been significantly impacted by the Covid-19 pandemic. Due to the public's restriction on gathering in crowded places to avoid the spread of the virus, numerous events, especially large ones, have been either canceled or indefinitely postponed. The most visible impact can be observed since the widespread announcement of the pandemic, leading to the cancellation of many traditional festivals across Vietnam. Furthermore, major events that attract widespread attention, such as the Global Mobile Exhibition 2020, New Year music festivals, F1 races, and even major sports events in Vietnam, have been canceled or prolongedly postponed. The cancellation of events results in a loss of revenue. Therefore, many event companies have had to implement a series of solutions and utilize the 'pandemic break' to strengthen internal company structures. Some have even resorted to temporarily reducing staff to ensure survival and future development.

One of the industries significantly affected by the pandemic that is evident to everyone is transportation and aviation services. With many people currently emphasizing the need to limit travel, avoid long-distance journeys, and gatherings in crowded places, transportation services are heavily impacted by a drastic reduction in passengers. The strong impact on transportation and aviation services is rooted in the stagnation of the tourism industry due to Covid-19. The lack of development in tourism inevitably affects transportation services, especially air travel. Numerous flights have been canceled, and many routes from epidemic areas to Vietnam, such as South Korea and Europe, have been restricted. Public transportation services and taxis also experience a decline in passengers due to public concerns. The Covid-19 pandemic has had a substantial impact on transportation and aviation services in Vietnam.

It's evident that import/export is a sector directly affected by the Covid-19 pandemic. Since the widespread outbreak of the disease in various regions, numerous measures to restrict international trade have been implemented. The precautionary measures against this pandemic have led to a significant decline in import/export activities in Vietnam, especially exports to China - one of the largest markets for Vietnamese businesses at the moment. Many companies in Vietnam are unable to import raw materials from China for production, and various industries cannot export finished products to this large country. The stagnation in import/export has indirectly affected many related sectors, causing severe economic damage in various aspects.

The negative impacts of the COVID-19 pandemic on the Vietnamese and global economies are undeniable. To address this issue, many companies and enterprises have quickly implemented a series of measures, from internal issues to public relations. As the outbreak of the new strain of the coronavirus is controlled and successfully treated, industries, especially import/export, will quickly return to normal operation.

The agriculture sector is also considered one of the hardest-hit industries due to the ongoing pandemic in general and specifically, the Covid-19 pandemic. According to experts, this may be one of the sectors most severely affected by the disease. Vietnam's agriculture is stagnating, domestic consumption is decreasing, and the challenges in import/export are truly a serious issue. Since the Lunar New Year, many regions producing agricultural products nationwide have urgently requested support for consumption from the public. Numerous rescue programs for agricultural products have been implemented. Additionally, the complex legal procedures and the restricted trading mentality have contributed to the severe stagnation and congestion of agricultural products. The surplus of agricultural products, unable to be exported in large quantities, is being sold at extremely low prices. This has caused significant losses for farmers and the entire agriculture sector in Vietnam.