Vietnamese companies advised to proactively respond to Suez Canal blockage
The Ministry of Industry and Trade (MoIT) has advised exporters around Vietnam to adopt necessary measures in order to minimise any economic damage posed by the stranded shipping vessel in the Suez Canal.
In the two opening months of this year, Vietnam’s shipments to the EU hit 7.5 billion USD, up 18 percent year-on-year (Photo: VNA)The stranding of the Ever Given in one of the most important global trade routes is affecting Vietnam’s exports to Europe.
Apart from a small volume of goods transported by air and rail, nearly all trade between Vietnam and Europe is conducted by sea and passes through the Suez Canal.
The MoIT has directed the Vietnam Trade Office in Egypt to keep a close watch on the incident and keep export-import enterprises updated on the situation.
The ministry has also coordinated with the Ministry of Transport to take necessary measures if the blockage continues.
According to the ministry’s Import and Export Department, along with the scarcity of containers and the rising cost of shipping due to COVID-19, the stranding of the Ever Given has seen Vietnamese import-export enterprises face yet more difficulties.
MoIT and Vietnamese enterprises need to actively adapt to market fluctuations or cases of “force majeure” such as this, the department said.
The Ever Given, one of the world’s largest container vessels, is still wedged in the Suez Canal, blocking the movement of all other ships in both directions. The economic effects of the incident are beginning to be felt.
Figures from MoIT show that Vietnam’s export turnover to Europe hit 43.7 billion USD in 2020, while 18.5 billion USD was outlaid on imports from the market.
In the two opening months of this year, Vietnam’s shipments to the bloc hit 7.5 billion USD, up 18 percent year-on-year.
Europe remains Vietnam’s fourth-largest trade partner, after China, the US, and the Republic of Korea./.
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