Author(s): Trong Luan Nguyen, Huy Hoang Mac, Van Bay Huynh, Thang Loi Nguyen, Dinh Khoi Nguyen, Dinh Tram Anh Phan, Thi Ngoc Yen Nguyen
The COVID-19 outbreak has spread across the globe and has caused economic challenges for multiple economic sectors including SMEs. This study aims to investigate the impact of social distancing as a Government response for COVID-19 on SMEs in Southern Vietnam and examine what hardships SMEs are facing. It used descriptive statistics and quantitative method analysis with a survey design. Respondents were all SMEs affected by the COVID-19 pandemic and social distancing policies in Southern Vietnam. It involved a total of 203 SME samples selected randomly in Southern Vietnam. Sampling was done with an instrument in the form of a questionnaire. The results of this study found that the consequences of the COVID-19 pandemic affect SMEs. The evidence is the decline in sales of SMEs due to the social distancing policies. Moreover, SMEs suffer the increase in raw materials and production costs due to supply chain problems. Besides, "losing customers", "employees", "decrease of productivity", "cannot meet the schedule" and "decrease of capital" also is significant problems for SMEs. The percentage of SMEs who can take advantage of Government support policies is still moderate. Businesses also voice their suggestions for Government policy to provide more support to maintain sustainability.