Plastic industry suffers from low purchasing power due to COVID-19

TTO – Consumer demand in the domestic market is weak because consumers limit their travel, which greatly affects purchasing power, as well as having a significant impact on workers’ jobs, costs businesses have to bear. suffer if the COVID-19 epidemic lasts. The plastic industry suffers from low purchasing power due to COVID-19.

Plastic beads – Photo: TTO

President of the Vietnam Plastics Association (VPA) Ho Duc Lam has just sent an official dispatch to the ministries of Finance, Industry and Trade, and the Vietnam Chamber of Commerce and Industry proposing to support plastic enterprises during the next COVID-19 pandemic. progression is very complicated.
According to Mr. Lam, China is the fourth largest import market of Vietnam’s plastic products, with a turnover of 148.7 million USD, accounting for 4.3% of the total export turnover of plastic products.
Currently, many enterprises in the plastic industry import input materials, chemicals and additives mostly from China.
If the situation lasts until the end of the first quarter, there will be no production materials, affecting the progress of export orders of enterprises. At the same time affecting the jobs of workers, the costs businesses have to bear during the time when there are no orders.
“We ask the inter-ministerial department to propose the Government and the State Bank to consider a mechanism to support businesses before the impact of the epidemic on allowing debt freezing, debt rescheduling, reducing loan interest rates, and structuring loans. , extending the tax payment schedule… to help a number of businesses in production and business activities that are facing difficulties,” said Mr. Lam.
According to VPA’s assessment, the complicated developments of COVID-19 not only affect the production and export activities of enterprises in the plastic industry in the near future, but furthermore, consumer demand in the domestic market. It will also be difficult to recover as quickly as the business expects.