GENERAL
Global value chains (GVCs) enable developing countries to specialize and drive growth and job creation to drive economic transformation.
However, the disaster of the Covid-19 pandemic, according to statistics in the first 4 months of 2020, caused serious damage globally, disrupting the lives and livelihoods of all people as well as development. and existence of businesses in the world. COVID-19 poses unprecedented challenges to global value chains as it disrupts both supply and demand for goods.
According to Hafez Ghanem (Vice President, East and South Africa, World Bank), the worsening of this supply-demand shock could erase early successes in economic growth and poverty reduction in a number of countries in the region.
FOR VIETNAM
The electronic value chain is impacted by lockdowns for overseas suppliers and logistics disruptions, affecting both the shipment of raw materials and electronic components – and distribution the final product reaches the consumer. Long-distance supply chains can slow down a company’s ability to respond quickly to a crisis and leave a business facing a situation where inventory cannot be turned around.
BENEFITS FROM PANDEMIC
Although the Covid 19 pandemic has caused quite a lot of mental and physical damage to businesses and people around the world. But, through that pandemic has left a lot of lessons and benefits for businesses. COVID-19 also accelerates the trend of digitization. The blockade of workers creates a strong incentive for businesses to automate certain functions, encouraging digitization and the use of online platforms. Travel restrictions encourage online sales and promote electronic commerce (E-commerce), so that businesses can bring goods and services to new consumers with ease and fast.
