Backlog
As one of the largest cashew exporting countries in the world, Vietnam has covered many countries in the world, including major markets in Europe, the US and China. Therefore, when the outbreak of Covid-19 broke out in China, the cashew industry was greatly affected.
According to the sharing of Mr. Pham Van Cong, Chairman of Vietnam Cashew Association, China is a country consuming large quantities of cashews and almonds. Due to the effect of the Covid-19 epidemic, imported almonds plummeted, leading to a decline in almond prices, a part of consumers switched to almonds. This indirect effect made the amount of cashew signed with China stagnant. Now when the disease is widespread, the impact will be even greater on cashew exports.
Another industry that is also heavily affected by the Covid-19 epidemic is seafood. There are no specific assessments, but according to the Vietnam Association of Seafood Exporters and Producers (VASEP), some seafood export contracts to Korea are stagnant.
“Fisheries are characterized by production according to the orders of each country and each importer, so when they suspend their import, they must stop production and cannot transfer that product to another market” – Mr. Truong Dinh Hoe, General Secretary of VASEP, said.
In fact, when Covid-19 broke out in China, many enterprises were still not too worried, but now that Korea, Europe and the US are also getting hot with the epidemic, things are completely different. Worrying about the epidemic and post-harvest concerns, because when the epidemic is controlled, countries that compete with aquatic products with Vietnam such as India, Thailand and Indonesia will boost exports, the price competition will be more intense. .
Difficulties in processing products and export of fresh fruits such as fruits remained restless. Mr. Vo Quang Huy, Director of Huy Long An Co., Ltd. (specializing in exporting bananas), said that orders to China have not been running much, now businesses are worried when Japan – the main export market. of Huy Long An – also very hot with the Covid-19 epidemic.
If the order is stagnant, it is difficult for cold fruits to transfer to the export market because of many factors such as technical requirements, export clues … Domestic consumption with standard export products High is also limited, so it is not easy for businesses to turn around.
Hope to end the epidemic soon
Perhaps the business plan of enterprises, especially export enterprises, has been put in two words “hope” as much as now, hope to control the disease soon, because if the disease spreads, it will affect enjoy more and more serious because global aggregate demand will drop sharply.
In particular, industries that depend on imported raw materials and components from countries such as China, Japan, and South Korea … At the meeting last week to assess the impact of the Covid-19 epidemic on industries. domestic production and industry, the Ministry of Industry and Trade has indicated the risk of many enterprises having to stop operating due to the supply of raw materials.
As for electronics, Vietnam imported about 40 billion USD of electronic components in 2019, of which South Korea accounted for 42%, from China accounted for 34%. Up to now, electronic enterprises have only enough spare parts for production until the middle or the end of March.
The most difficult supply of raw materials is the textile industry. According to Mr. Pham Xuan Hong, Chairman of Ho Chi Minh City Textile and Garment Association, most enterprises in the industry only have enough raw materials for production by the end of March. No input, no output nor peace of mind, many businesses are in danger. dual muscle.
Because the impact of the Covid-19 epidemic will inevitably reduce the demand for fashion items such as garments, the export price will also decrease. Assuming that enterprises can find temporary sources of alternative raw materials in the short term is also difficult to compete.
“At this time, enterprises only know that the hope of epidemic is soon controlled in the world, and that the Government has timely policies to support enterprises. For its part, businesses also have solutions for themselves but it is difficult to feasible “- Mr. Hong confided.
In fact, solutions to support businesses are also discussed in the meeting of the Ministry of Industry and Trade. Accordingly, the ministries and branches consider policies to extend the repayment period of short-term loans for production and business activities of enterprises; policies on tax exemption, reduction and early VAT refund; allowing late payment of tax or not imposing penalties for late payment of tax for businesses that have not paid taxes due to disease effects.
Supporting enterprises to pay social insurance expenses for laborers in case of suspending production and business due to epidemics. Consider refunding deposit to ensure the implementation of investment projects for projects in progress, not yet in operation due to epidemics. Especially these supports must be implemented early, not when businesses are too weak to “hand” will be difficult to save.
In the context of common difficulties of many export enterprises, there are still businesses that find business opportunities. Talking with DTTC, Mr. Le Duy Toan, Director of Duy Anh Food Company, said that Duy Anh's vermicelli, noodle and rice paper are now being ordered more by foreign partners because of their convenience. use.
In particular, markets like South Korea that used to be very stringent to test now are easier. They also suggest how many stock in the warehouse goes through. Expected exports of Duy Anh this year will increase over the previous year.
| “Currently, electronic enterprises only have enough production components until mid-March, while textile enterprises only have enough production materials until early March, so the possibility of stopping production is very large.” – Mr. Truong Thanh Hoai, Director of Industry Department, Ministry of Industry and Trade |
Source: Sài Gòn Investments Finance
