The Impact of the Covid-19 Pandemic on the Business Performance of Construction Industry Enterprises in Can Tho City

Abstract

Objective: This study is to investigate the influence of COVID-19 pandemic on the business performance of micro, small, and medium enterprises within the construction industry. Methods: To evaluate the impact of the COVID-19 pandemic on the business performance of SMEs, the authors employ two linear regression models to analyze and identify factors influencing business performance and the change in business performance before and after the COVID-19 pandemic. The model aims to determine the effect of the COVID-19 pandemic on the business performance of SMEs in the construction industry in Can Tho city. Results: Based on the dataset of 186 observations and the regression result shows that seven factors account for the variation in business performance of construction industry enterprises during the pandemic including disruptions in production, policies for capital support, scarcities in materials, and shortages in labor. The findings remained consistent after controlling other personal traits such as employee education, manager's educational and experience. Conclusion: The majority of industrial and construction enterprises were confronted with greater barriers in business operations during the COVID-19 pandemic, therefore, this led to a decline in revenue and profit for these businesses. The implications of this study are expected to guide business leaders in adopting appropriate adaptive strategies to enhance their business performance.