Safe production plan for enterprises after "three on-spot"

Khai Phat Vietnam Co., Ltd. is completing the "4 on-spot" model to maintain production. Photo: Van Khuong

Create a "green zone" for production

After nearly two months, HCM City and 18 southern provinces and cities implemented social distancing according to Directive 16 of the Prime Minister, which had a strong impact on production and export of firms. Tran Doan Trung, Vice Chairman of the HCM City Confederation of Labor, said that up to now, the whole city has 1,400 firms, with more than 100,000 registered employees.

However, many businesses find it difficult to support workers because they cannot connect due to the complex pandemic situation. Regarding vaccination, in addition to more than 80% of workers in industrial parks and export processing zones in HCM City received the first dose of vaccine, there are still about 390,000 workers in firms with more than 200 employees who have not been vaccinated.

Currently, HCM City is calculating a safety plan and disease control system at firms when the workforce returns to work. For example, temperature measurement will not be appropriate when F0s infected with Delta variant have almost no symptoms...

Regarding this issue, Pham Thanh Truc, Deputy Head of the Management Board of Export Processing Zones and Industrial Parks in HCM City, shared that as of August 15, there were 650 firms, with 51,000 employees in the three on-site activity registration zones. Up to now, many businesses are facing difficulties and must reduce production activities, but there are also firms that are applying for preparation of re-operation plans. “Currently, more than 80% of workers are vaccinated, so in the past time, although there have been more than 4,000 cases of F0, their health recovered very well, no bad developments occurred. This is also one of the standards to create a "green zone" for firms' production in the coming time," emphasised Pham Thanh Truc.

In the urgent plan to prevent the pandemic recently issued by the People's Committee of HCM City, HCM City requires maintaining and stabilising safe production according to appropriate plans, not letting the supply chain, food production, equipment, medical supplies are broken; increase the rate of about 5-10% of firms to re-organise production in safe conditions for pandemic prevention and control.

To achieve the above goal, the city creates conditions and guides businesses to organise safe production in the conditions of pandemic prevention according to one of four options:

Option one, firms continue to implement "three on-site" or option "three on-site according to the crew".

Option two, businesses continue to implement the option "one route two destinations" or the option "1 route 2 destinations expanded" - allowing businesses to organise many places to stay in different locations and organise transportation of workers from concentrated accommodation to the workplace.

A new option (option three) Firms organise activities under the motto "four green" including green workers, green roads, green production areas, green places to live. In particular, "green workers" can travel by personal vehicle between "green workplace" and "green residence" along "a green road".

Option four, firms can combine the methods in the above options.

According to firms, among the above 4 options, options 2 and 3 can be suitable for many businesses. In fact, most firms have actively adjusted their production models accordingly on the basis of still maintaining "three on-site". Some other businesses are considering switching to the "green 4" option. However, "green roads" and "green places to live" are not in the decision of businesses, but need support and companionship from local authorities.

Ho Thi Thu Uyen, External Affairs Director of Intel Product Vietnam Co., Ltd. (Intel Vietnam) said over the past time, the company has applied the model of "one road, two places" for 1,870 employees. Intel Vietnam has 86% of workers who have received the first vaccine, so it proposes the option "two on-site, one green area", similar to the "four green" plan of HCM City.

With this option, workers produce and eat at the factory but return to rest in a safe area, outside the factory. That safe zone can be a private house, an inn or a hotel but it must be in the "green zone". If approved, Intel Vietnam will conduct a test with a group of 10-30 people for two weeks, screened from non-blockade areas, areas with no infections.

To create a green zone, enterprises also expect the city to increase the coverage of two vaccinations for the workforce, and businesses are in dire need of a synchronous and drastic implementation of solutions to support businesses on medical work, testing, circulation, transportation, and human resources from the city government.

Overcoming the shortage of workers and raw materials

According to the analysis of business associations, the production has a direct impact on the exports of firms. Starting from the second half of July, seafood exports dropped markedly, with a decrease of about 15-20% compared to the first half of the month, causing the seafood export turnover of the whole month to decrease by about 4% compared to the same period last year. The seafood industry is facing three main factors, including: a decrease in production output due to the implementation of social distancing; freight costs increased, and the cost of raw materials and aqua feed prices skyrocketed. Besides, aquatic materials mobilised for processing and export only reach some 40-50% compared to external sources due to the implementation of distancing.

In addition, businesses said it is necessary to have a synchronous coordination mechanism between localities in disease control and prevention, to remove problems for businesses, ensure smooth transportation to maintain products and export. Per Ho Quoc Luc, Chairman of the Board of Directors of FIMEX VN, after more than 4 weeks of implementing Directive 16 of the Government, production, business and export activities of shrimp processing factories in the Mekong Delta have been turned upside down. The implementation of pandemic prevention regulations in each locality is also different, making both farmers and businesses confused. Due to the difficult situation of travelling between localities, the second crop production tends to be quiet. It is forecast that in the fourth quarter of this year, there will be a serious shortage of shrimp materials and the consumption price will increase sharply, especially large-sised shrimp.

To maintain safe production and export, some firms proposed to soon have instructions on safe production methods for firms. Lam Thuy Ai, Chairman of the Board of Directors of Mebipha Production and Trading Co., Ltd., said currently, firms implement the "three on-site" option for the safest control, not rotating workers despite having a buffer zone. Imported materials are affected because foreign firms stop operating.

Nguyen Dang Hien, Chairman of the Board of Members, General Director of Tan Quang Minh Production and Trading Co., Ltd. said it is very difficult to make a profit in the current period. But the enterprise still tries to maintain to ensure the production - supply chain is not interrupted, maintaining jobs for employees.

“Firms are recalculating their operation plans, in addition to increasing costs, they also must deal with the psychology of workers who have to be away from home. Firms make plans, work and take breaks alternately with specific time; organise morning and afternoon sports for employees to reduce stress "- Hien shared the firm's plan.

The good news is many businesses that have temporarily suspended production have also registered to resume operations. After temporarily suspending operations due to not meeting the requirements of "three on-site", Tan Phat Import-Export Trading One Member Limited Liability Company - trading in the field of rice drying, milling, polishing rice, husk pellets for export - has just registered for re-production and business under the "4 on-site" option with 90 employees. According to this firm, the local functional departments are appraising, if the "4 on-site" requirements are met; the company will be allowed to operate again.

According to Chu Tien Dung, Chairman of the HCM City Business Association, in order to remove difficulties for businesses, the People's Committee of HCM City has proposed the Government to reduce the price of electricity for production or waive the price of electricity for workers' daily life for isolated areas, and support the review of the electricity bill. Covid-19 testing for workers is free of charge, spraying disinfectants, vaccinations, etc. Regarding financial and credit support policies for businesses, the People's Committee of HCM City has proposed a series of solutions. In which, firms are classified into 3 groups to develop support policies suitable to the operating status of firms: dissolved, bankrupt firms; the firm is temporarily suspending its operation; Businesses are active.

Commenting on the draft resolution of the National Assembly Standing Committee promulgating a number of solutions on budget revenue to support businesses and people affected by the Covid-19 pandemic, the People's Committee of HCM City proposed to extend the application deadline at least until the end of the first quarter of 2022 and possibly until the end of June 2022. For firms operating in the service sector heavily affected by the pandemic, it is necessary to increase the VAT reduction to 50%, instead of 30% as draft.

On the policy of land rent exemption and reduction, the People's Committee of HCM City proposes to continue implementing the policy of reducing land rent for land tenants facing difficulties due to the impact of the Covid-19 pandemic with a reduction of 30% in 2021. The People's Committee of HCM City proposed allowing businesses to deduct the cost of Covid-19 pandemic prevention to maintain production in the budget payments.