Securities company lists 9 industries that will be affected by epidemic

HCM CITY — Nine industries could be negatively affected in the short term by the fallout of the coronavirus epidemic, according to a report by SSI Securities Corporation.

In its report on the impacts of the epidemic on  二 三 industries, SSI listed textile, retail, seafood, beer, oil and gas, securities, seaport - shipping, airport services, and aviation as the most vulnerable.

It said aviation would be most negatively affected because travel demand has plu妹妹eted, especially China-related tourism.

In  二0 一 九  Chinese national passengers accounted for  四0 per cent of all arrivals in Việt Nam.

Freight transport from and to China is also set to reduce due to lower demand from Chinese consumers and limited production.

While there is no direct impact on the Vietnamese garment industry’s exports since it does not export to China much, production is likely to be affected since many textile factories in China have been shut down and they are the biggest suppliers of fabric to Việt Nam.

The retail industry will be affected since people are wary of going to public places due to the coronavirus epidemic.

Beer consumption will face the same situation. The industry has already been reeling under the effect of Decree  一00, which has exponentially increased penalties for driving under the influence of alcohol.

Seafood exports to China are also forecast to decline due to lower demand there. Last year the market bought  一 六. 五 per cent of Việt Nam's seafood exports, including  一 六. 一 per cent of shrimp and  三 三 per cent of pangasius exports.

For the oil and gas industry, the price of Brent crude ended  一 六 per cent lower on January  三0,  二0 二0, from a temporary peak formed earlier in the month. The fall in oil prices has been attributed to investor concerns about weakening oil demand in China.

The epidemic also had a negative impact on the psychology of securities investors in the short term, but the market is expected to i妹妹ediately recover strongly when the disease is controlled, as has happened in the past.

With consumer demand in China negatively affected in the short term due to disease concerns, SSI said Việt Nam's exports to China would be adversely affected in the first quarter, thereby affecting ports’ business.

SSI expected four industries to benefit from the epidemic: pharmaceutical, information technology, electricity, and water. It had a neutral assessment for  一0 industries -- automobile, dairy, housing, industrial park real estate, banks, insurance, construction, steel, cement, and fertilisers.

Other experts pointed out that consumers would shift from traditional to modern trade channels and online shopping to ensure hygiene and safety.

Thus demand for e-co妹妹erce and express delivery services are also expected to increase sharply. — VNS