How do businesses prepare for the ‘second wave’ of COVID-19? in Vietnam?

HR Insight,Labor Market,Survey/Research

As Vietnam is grappling with the continued impacts of COVID-19, HR professionals struggle to navigate their workforce through the crisis, while maintaining business performance. Adecco Vietnam’s latest survey aims to take a closer look at how hard the novel coronavirus is hitting business in terms of revenue and labour force, and how about Vietnamese businesses preparation for this 'second wave'' to transform their future workforce.

About the Survey

The research brought together a sample of 330 HR specialists in May. Most of them are at manager or director level, working in multinational company in Vietnam and 77% of whom filled out the questionnaires completely.

About the survey

An overview of Coronavirus impact on revenue and labour cost reduction

According to the survey, 93% companies’ financial performance has been affected by COVID-19. Among those, 43% severely impacted businesses saw revenue declining up to 21-40%. Top three industries with revenue negatively struck by COVID-19 are Food & Beverages (47%), Real Estate (56%) and Manufacturing (44%).

Alongside declining revenue and business activities, many companies face tough decisions on their labour force, including employee layoff or salary reduction. 30% business reduce the number of employees from 1-20% and 16% business even must cut down 21-40% their headcounts.

On a brighter side, regardless of no positive signal for the revenue in supply chain & logistics, up to 62% companies in this sector maintain their workforce and only 7.69% companies suffer 21-40% layoffs. Other sectors that have high rate of no employee layoffs are IT (55%) and Finance & Insurance (54%).

Vietnamese business preparation for COVID-19

HR labour cost reduction

For further risk mitigation, 58% companies choose to freeze all new hires, especially large enterprise level (75%) rather than SMEs (50 – 56% roughly). Other labour cost reduction initiatives include postponing salary, incentive & performance review (37%); cancelling internship programs (28%); reducing working hours (26%); requiring unpaid leave temporarily (16.5%); suspending permanent contract extensions (12.46%). When making those decisions, 69% companies collaborated or negotiated with their employees in advance rather than acted unilaterally.

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