Illustrative image (Photo: VNA) Vietnamis benefiting from the disruption of global supply chains, and manufacturersare seeking to diversify supply, including from Vietnam.
Globaldemand is recovering and this is an opportunity for Vietnam to boost itsexports of consumer and industrial products, according to the Ministry ofIndustry and Trade.
Itforecast Vietnam's foreign trade to remain robust as free trade agreements aregradually being implemented in a more comprehensive and effective manner.
TheComprehensive and Progressive Agreement for Trans-Pacific Partnership, the EU-VietnamFree Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement willcontinue to smooth the way for Vietnamese goods to enter partner markets withpreferential tariffs.
YetPham Xuan Hong, Chairman of the Ho Chi Minh City Association of Garment,Textile, Embroidery and Knitting, said he remains worried since some membershave had to suspend production since they are in a lockdown area or theirworkers are isolated for living in such areas.
“Though[the impact] is not too serious yet, there is cause for worry since we do notknow when the pandemic would be controlled. If social distancing is prolonged,it will definitely affect export orders signed with foreign partners.”
TruongDinh Hoe, Secretary of the Vietnam Association of Seafood Exporters andProducers (VASEP), said he has petitioned the Ministry of Agriculture and RuralDevelopment to resolve the problem of lack of containers for exports and reducethe growing freight rates.
InApril freight for a 40-foot container to the west coast of the US was around 5,000USD, but now it is more than 10,000 USD. It used to be less than 1,000 USD duringpre-pandemic times
Freightrates to Europe are also at high levels of 7,000-8,000 USD.
TranVan Linh, Chairman of the Thuan Phuoc Seafood and Trading Corporation, saidthat marine transportation fees were at unreasonably high levels butimport-export companies like his had to accept them.
Cancellationof orders or failure to deliver in time would undermine the company’s prestigeand efforts to find customers in future.
TruongTien Dung, Director of the Sai Gon Aquatic Products Trading Joint StockCompany, said despite the increase in transport costs, it would be impossibleto negotiate increases in products prices because COVID has caused consumers inplaces like the US and the EU tighten their purse strings.
Butthe high transport costs are eating into companies’ profits, and not just theseafood sector but also others’ exports would be hit hard, he warned./.
VNA
