The Ministry of Industry and Trade will support enterprises in solving difficulties and promoting their production and export (Photo: VietnamPlus).

Hanoi (VNA) - The Ministry of Industry and Trade (MoIT) has recently hosted a meeting to seek solutions to help businesses bolster production and export amid the complicated developments of the acute respiratory disease caused by the novel coronavirus (nCoV) and difficulties caused by the disease.

The disease has caused severe impacts on many production and export sectors of Vietnam such as textiles, footwear, and electronic components as raw materials for the industries are imported from China.

Amid the situation, the MoIT affirmed that it will keep close watch on the developments of the disease, and support businesses in removing difficulties and promoting production and export.

Enterprises facing difficulties due to lack of production materials

According to Phan Thi Thanh Xuan, General Secretary of the Vietnam Leather and Footwear Association (Lefaso), the footwear sector is predicted to be heavily affected by the disease.

Lefaso’s preliminary survey shows that raw materials hoarded by businesses will only meet production for a while. If the disease lingers on, footwear enterprises will face difficulties due to a lack of production materials.

Enterprises are looking for alternative sources but they meet partially the demand, Xuan said, adding these are temporary solutions in the situation.

As the industry with the top export turnover in the world, textiles and garment are also heavily affected by the disease.

According to Truong Van Cam, Vice Chairman and General Secretary of the Vietnam Textile and Apparel Association (Vitas), the situation becomes more difficult if the Chinese side continues to close its border.

[Firms urged to prepare for impacts of coronavirus]

Besides, textile and garment enterprises worry that if they stop production, they have to pay salary workers in accordance with the provisions of the Labour Code.

Along with efforts to contain the spread of the epidemic, the State needs consider support packages for businesses and labourers, he said.

Meanwhile, a representative from Samsung Vietnam mentioned difficulties facing enterprises due to procedures of customs clearance at the Huu Nghi border gate, and expressed the hope that the two countries’ authorities would create conditions to minimise the damage caused for forwarding activities at the border gate.

Supporting enterprises in addressing difficulties amid epidemic

Export turnover of the group of processed products in January saw a sharp decline, reaching only 15.88 billion USD, down 15.1 percent against the previous month, and 13.8 percent compared to the same period last year.

According to Do Thi Thuy Huong from the Vietnam Electronic Industries Association, the impact of the disease on the electronics industry will be visible in the next one or two months.

The inventory in enterprises is running out. Meanwhile, new consignments that are stuck at land border gates will affect the operation of supply chain-based producing enterprises.

In addition, it is not easy to find alternative supply sources because the electronics industry is operated based on the global supply chain, she said.  

In order to minimise the impacts, Huong suggested that the Government should have a debt restructuring policy and approve support packages for businesses in the sector.

Proactively preparing production and business plans amidst the outbreak (Photo: VietnamPlus)

Minister of Industry and Trade Tran Tuan Anh asked for updated information and specific measures of each sector to ensure production plans in the context that the Government does not adjust growth targets.

He also ordered the Trade Promotion Agency, the Import-Export Department and the Foreign Markets Department under the MoIT to continue solving difficulties, especially giving measures to handle agricultural products congested during the process of customs clearance with the Chinese market, while re-evaluating the volume has been and will be congested in the coming time, thus seeking outlets for sales.

The Minister required the Domestic Markets Department to continue to work with supermarkets and shopping centres to promote consumption.

Departments and agencies related to the energy sector were asked actively review energy projects and activities of energy enterprises, towards maintaining production and business of the projects./.