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Resumption of Business Activities Post Social Distancing Period

Resumption of Business Activities Post Social Distancing Period

“After a prolonged period of social distancing, the Covid-19 epidemic situation has gradually improved. With the economy opening step by step, enterprises are gradually restoring production and business activities in the “new normal” state. The impact of the epidemic makes it necessary for ongoing businesses to consider changing their business methods to adapt to the new situation. Investors should consider their intended business lines carefully. It is essential to ensure the safety of enterprises while still meeting the needs of the market.”

Business method and mode of working

Enterprises are taking advantage of information technology in their business activities. However, in general, the process of utilizing information technology for production and business activities remains limited. Hence, it is more of a creative solution rather than an important factor that needs to be given top priority. To flexibly adapt to the epidemic, enterprises might consider focusing on developing their online business by setting-up their own e-commerce website or participating in e-commerce trading while simultaneously maintaining the in-store business model.

When it comes to working model and interaction between members within the enterprise, internal databases should be developed, and applications should be used for facilitating communication among members or the enterprise’s own platform should be set up. This not only maintains work progress but also ensures safe operation of the business. In fact, during the period of strict social distancing, some enterprises have adapted by deploying digital applications to enable employees work from home, minimizing disruptions during business. However, interacting and sharing information through cyberspace still bear potential risks of security breach that enterprises need to monitor for applying necessary security measures.

Business sectors and investment trends

Due to the impact of the epidemic, the economy would gradually tend to shift to several industries that are adaptive to the epidemic situation.

Firstly, public investment in infrastructure increases to ensure that the supply chain facilitates the development of transport and logistics industries, helping to enhance economic recovery after the pandemic. When social distancing policies were strictly enforced during the peak of the epidemic, the supply chain got disrupted, impacting manufacturing enterprises and large markets. Therefore, the participation of investors in this field not only creates more solutions, but also increases competition among enterprises in the same industry. This creates a solid foundation for goods circulation that can withstand similar risks in the future.

Secondly, the epidemic has made consumers pay more attention to health issues and health insurance. This high demand is expected to create opportunities for investors in the health and insurance sectors.

Thirdly, epidemics also contribute to raise awareness about the importance of protecting the environment and limiting waste-discharging activities. Consumers will prefer enterprises that advocate sustainable development and provide environmentally friendly products. Therefore, renewable energy is a potential sector that investors can consider as a business solution ensuring sustainable development.

Fourthly, due to the disruptions to supply chain caused by the epidemic, each country tends to increase its domestic agricultural production. Therefore, industries producing and distributing food and agricultural machinery are also promising sectors for investors.

Finally, to adapt to the epidemic situation and limited in-person interaction, services that can be performed online are also a potential field for investment. Some services can be such work platforms, distance learning, delivery services, e-commerce shopping, online payment services, etc. are some of such potential sectors for investment.

The impact of the epidemic such as shortage of workers and raw materials, production stagnation, supply chain disruptions, etc. have caused many difficulties for enterprises. This is also an opportunity for a breakthrough business to contribute to the recovery of the economy. Therefore, at this moment, as the pandemic is still causing economic difficulties and leading many countries towards finding solutions to “live with the pandemic”, investors who are planning to do business will need to understand changes in consumer behavior and prepare a business plan to accommodate those changes. These business plans should respond to new trends and consumption habits and must be flexible to changing trends and habits after the pandemic. If this is done effectively, investors and enterprises can promote business activities even during this time and create a competitive market, helping the business further develop in the future after a prolonged interval.

Time of writing: 26 October 2021

The article is based on the current law at the time of recording as above and may no longer be relevant at the time readers access this article due to changes in applicable law and specific cases that the reader wants to apply. Therefore, the article is for reference only.

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