VIETNAM UNDER COVID-19: THE STAGNATION OF GOODS IN IMPORT-EXPORT
Although the #ImportExport activities and products transportation in Vietnam still remained active during the #pandemic, progress has been much slower than in the past due to mandatory requirements for strict measures to prevent any spread of Covid-19. The stagnation of goods and port congestion is growing as the pandemic becomes severe. Specifically, manufacturing areas in the south of Vietnam at Ho Chi Minh, Binh Duong, Dong Nai have reported an increasing number of infections in factories and industrial zones.
DECREASE IN QUANTITY
The new Covid-19 policies have brought more restrictions to the production activities of many Import-Export enterprises in Vietnam. The extent to which the businesses have imported and exported is clearly to contribute in showing different impacts, most of which are negative, suffered during the Covid-19.
Confronting the ongoing pandemic-related closures, enterprises have decided to reduce the production quantity of import-export goods. Hence, the decrease has had a consequential impact on the whole production process and allied industries.
With increasing the demand for ocean freight and port congestion, import-export companies have had to cover the swell of freight rates recently. The reduction in import-export products’ quantity and the increase in marine fuel costs caused by delays and closers of fuel companies are also the main reasons for the increase in costs.
Plus, the shortage of shipping containers has caused more difficulties for both enterprises and shipping companies to ensure their orders will be delivered at the right time. In terms of labor, all supply chains have been strictly required to ensure protective measures for all participants, such as wearing masks, using hand sanitizer, restriction on travel, and even manpower reduction, etc. As a result, this has greatly contributed to the increase in supply chain costs and more delays.
SUPPLY CHAIN DELAYS & THE STAGNATION OF GOODS
Businesses within the whole supply chain are seriously affected leading to more delays, unprecedented challenges, canceled orders, and resulting in heavy losses to the companies. Other challenges in transportation during this time could be clearly identified such as Covid-19 transport-related restriction and policies, shortage of fuel, increase in transportation cost, border holdups, etc.
Considering the Covid-19 situation including the burden of logistics costs and less product quantity, many foreign clients have decided to delay the order until the situation becomes better. This has put many Vietnamese domestic companies under the pressure of goods stagnation and hardly find any way out in the short term. Apparently, many factories in Vietnam have been forced to shut down as the pandemic became more severe.
The market industry after Covid-19 is unpredictable and consumer behavior is continuously changing under the impact of the pandemic. Enterprises and factories would have to come up with faster, more reliable, and affordable solutions of how to remain in production while ensuring workers’ health and preventing any infections from coronavirus. Thus, analyzing the new consumer behavior and adapting more technologies to optimize production would be key issues for enterprises to focus on.
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