Covid-19 impact and response of small and micro enterprises in Long Xuyen city, An Giang province

Abstract

This article is self-assessment result of 660 small and micro enterprises (SMEs) in Long Xuyen city, An Giang province (630 enterprises participated in the survey and 30 enterprises participated in in-depth interviews) on the Covid-19 pandemic impact and the current situation of businesses. The findings showed that SMEs in Long Xuyen city have faced many crises of customer volume, consumption market, supply chain and financial problems caused by the Covid-19 epidemic. The SME production and business activities stalled, reduced revenue; many had to suspend production and business, dissolve, or even go bankrupt. However, in the face of negative impacts from the Covid-19 epidemic, many businesses have shown their resilience in applying solutions to cope with the complicated and unpredictable developments of the disease. Remarkably, four solutions were chosen by all SMEs, that is to reduce labor; reduce wages and working hours of employees; reduce regular operating costs and reduce the scale of production and business. However, digital solutions have been applied by very few SMEs as a response strategy to the Covid-19 epidemic.