How can businesses establish "a new normal" to get along with Covid-19?

In the first wave of Covid-19, according to the General Statistics Office, from the beginning of the year to the end of April, there were about 5,300 enterprises posting dissolution notices and nearly 5,800 enterprises waiting for dissolution procedures with the tax authorities. Also in the first four months of the year, more than 5,000 enterprises completed dissolution procedures.

The 1^st rank of enterprises completing dissolution procedures concentrated in the fields of wholesale, retail, repair of cars and motorcycles; the 2^nd rank of enterprises is the processing and manufacturing industry. The next are businesses in the construction industry; science, technology, design consulting and advertising services; accommodation and catering services; employment services, tourism, machinery and equipment rental, appliances, other support services and real estate business ...

 In May 2020, seeming to have basically controlled the Covid-19 pandemic, Vietnam and many other countries urged people to enter “a new normal state”, but with the second wave of Covid in July, businesses once again have to force themselves to be more proactive, expect the unexpected…in order not to be knocked down.

1. The Return to “New normal”

Depending on the field of production - business, the change is fast or slow, deep or wide, but we can see that there are 3 major trends currently happening:

 Working remotely via online platforms and corporate internal systems will become the "new standard"

Google and Facebook employees are told they will continue to work from home until 2021. Many other large corporations like Amazon and Capital One have similar requests to employees until September 2020. Drawing experiences from Covid-19, many businesses will also promote this trend in the coming time.

 Chance for the survived group

A few sectors, such as the export of masks, medical supplies and food, have received orders from regions facing pandemic tensions such as Europe and America. The pandemic will motivate future investors in a wave to shift production lines from China to Southeast Asian countries. In addition, the EU-Vietnam Free Trade Agreement (EVFTA) is about to be ratified, which will bring potentials to the Vietnamese economy compared to other countries in the region.

Only firms that adapt well to flexible supply chains or "dare to pay" will survive. Biti's quickly changed its product portfolio to keep up with new market trends and launched a new line of shoes with the message of promoting the fight against the pandemic - "No one is left behind". Samsung had to shift to air transport electronic for components from China to factories in Vietnam.

Businesses turn to developing online sales channels serving the "home economy" when demands arise from online teaching, gaming and watching movies, remote health care applications, and Procurement, ... Besides, the sudden demand for home delivery at the time of social isolation also leads to a certain amount of recruitment demand for companies in the last-mile delivery sector.

 Business associated with social responsibility

Keeping up with the trend of corporate sustainability in business management and administration will help businesses become investors' priority options. This trend focuses on finding long-term value for owners and stakeholders, through business strategies associated with social responsibility, environmental protection, business ethics (ESG).

In the situation of the Covid epidemic in recent years, understanding the difficulties faced by enterprises when it comes to human resource reduction, Faro Vietnam has launched a support service before, during and after the staff reduction process. These services not only focus on the benefits of the business, but also help the business to support unemployed find a new direction in their career for a better life!

 Faro Vietnam's labor contract termination process consulting service

 Faro Vietnam's new career counseling and job search services

2. Short-term and long-term strategies for Enterprises to survive in the new normal 

Contact Faro Vietnam to share the HR burdens  you are facing to!

Email: service.vn@farorecruitment.com

Tel: + 84 24 3974 3091 (Hanoi Office) / + 84 28 3821 4654 (HCMC office)