Steel, mechanical firms in struggle for survival amid COVID-19
Vietnamese steel and mechanical enterprises have felt a critical impact from the COVID-19 pandemic, with a gloomy market and sharply declining orders, and are in need of further support from the Government.
Vietnamese steel and mechanical enterprises have felt a critical impact from the COVID-19 pandemic. (Photo: VNA)
Hanoi (VNA) - Vietnamese steel and mechanical enterprises have felt a criticalimpact from the COVID-19 pandemic, with a gloomy market and sharply declining orders,and are in need of further support from the Government.
A wide range of steel companies reported sluggish manufacturing and low transactionnumbers due to project delays as a result of social distancing measures.
The Vietnam Steel Association (VSA) said that steel consumption has fallen as theconstruction sector has cooled, while the transportation of goods and materialsto northern localities like Hai Duong, Hai Phong, Hung Yen, and Quang Ninh has facedchallenges from new virus epicentres in Hai Duong and Quang Ninh.
Preparations for pandemic prevention and control and the arrangement of logisticsat steel plants, particularly the Hoa Phat steel complex in Kinh Mon district,Hai Duong province, are costly and have affected production.
Meanwhile, Chairman of the Vietnam Association of Mechanical Industries DaoPhan Long said auto makers are manufacturing at a moderate pace as they have receivedfewer orders than previously but are paying more for transportation.
In a bid to remove bottlenecks facing local manufacturers, VSA recommended thatthe State Bank of Vietnam and commercial banks provide credit support tocompanies, such as extending payment deadlines or cutting loan interest rates.
Along with helping business owners with quarantine costs for foreign experts,Long suggested the Government create the conditions necessary for companies tobid on domestic projects so they can expand markets and gain more orders duringthese tough times.
General Director of Hyundai Thanh Cong, Le Ngoc Duc, said registration fees on locally-manufacturedand assembled cars should be cut until the end of this year.
Car sales plummeted 35 percent when COVID-19 hit Vietnam during the first halfof 2020, he added, but sales then bounced back in the second half following a Governmentmove to halve registration fees.
Most recently, the Ministry of Finance recommended the Government consider allowingthe cost of COVID-19 prevention and control to be deductible for tax purposes.
It is evaluating measures introduced and studying suitable tax and fiscalsolutions to carry out the Government’s dual task of pandemic prevention andcontrol and economic recovery while ensuring balance in the macro-economy./.
Positive signs have been seen in shrimp exports since the beginning of this year and alongside a host of favourable conditions regarding market demand, the target of earning 4 billion USD from exports has been deemed “within reach”.
Private investments in Vietnam have reached a new peak in contrast to the trend towards decline around the world and in the ASEAN region due to the impact of COVID-19.
The People’s Committee of Hanoi hosted a press conference on March 4 to update the media on the capital city’s socio-economic development situation, which saw upbeat signals despite impacts from the COVID-19 pandemic.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Vietnamese steel and mechanical enterprises have felt a critical impact from the COVID-19 pandemic. (Photo: VNA) 
