In the context of an increasingly complicated Covid-19 epidemic, rumors and fake news have appeared and increased, making the financial market and trading in raw materials suffer a lot. The commodity market is also inevitably “swinging” according to disease statistics and is not at risk.
Difficulty everywhere
Shortly after China and the World Health Organization (WHO) announced the epidemic, there were about 2,000 stores belonging to the Starbucks coffee chain and hundreds of McDonald’s in China closed. Coffee prices on the London futures floor (UK) evaporated nearly 80 USD / ton in just one trading day. Crude oil prices are rising suddenly, short of breath due to disease. China itself – the world’s factory – also sharply reduced demand, of which only one of the country’s largest refineries decreased by 600,000 barrels / day due to lower domestic production demand.
Both international and Vietnamese shipping industries are significantly affected by the Covid-19 translation Photo: HOANG Trieu
It is estimated that China has 150 million people traveling abroad each year, but this number is likely to decline sharply. In China, many domestic and international airlines are “winging”. Official Aviation Guide of the Airways (OAG in the UK) said that in just a week to the end of February 5, the number of flights entering / leaving China decreased by more than 25,000 times. with 2 weeks before and up to 30 airlines stopped flying. In an optimistic situation until April 2020, when the hot season contributes to repel the Covid-19 epidemic, the psychology of tourists inside and outside China still has many concerns.
Meanwhile, the passenger transport and tourism industries may take a few more months to wait for passengers to regain their normal mood. Many cargo carriers by air reported so far have not been able to find sources of goods from anywhere to compensate for the amount of goods that stopped being exported from inland China before the Lunar New Year. Although air freight accounts for 1% of the total global cargo tonnage each year, it is worth up to $ 6,000 billion – according to data from Boeing (USA), the largest aircraft manufacturer in the world.
Shipping is also subject to a similar situation because China is the world’s No. 1 crude oil importer, now many factories at the center have to stop working or just operate in moderation. The BDIY (Baltic Exchange Dry Index – Ship transport of dry goods such as rice and coffee) is now at 421 points, the lowest level since March 2016, a sharp drop from 2,530 points last month. 9-2019.
The risks of Vietnam
The impact of the epidemic on the economy is inevitable not only in China but also affects Vietnam, in which the production sector and farmers are the most severe. Many provinces and cities of China were completely or partially blocked, leading to a stagnation of Vietnamese agricultural and fishery products at the northern border gates. Farmers and many businessmen were uneasy.
China is also a major market for Vietnam in the tourism industry. Once the translation has not shown signs of being controlled, the business of enterprises (DN) is still full of difficulties.
On the other hand, despite being an exporter of agricultural products and a variety of goods going in many different directions outside of China, the worries of suppliers in Vietnam are still not small. Market analysts believe that commodity prices of raw materials in general such as rice, coffee, cotton, rubber, soybeans … and even stock prices will fluctuate, detrimental to producing countries and international investors, including Vietnam.
Meanwhile, other commodities, including crude oil and agricultural products, due to unstable consumption demand, banks tightly control credit due to risk aversion … so the market will face many difficulties.
For Korea, this is a big foreign investor in Vietnam and is an important trading country with us. An outbreak situation in this country can also be the risk of affecting Vietnam’s investment and trade and should be wary of this situation.
Therefore, import-export enterprises should consider information about freight transport as well as many other fields in the coming days as an important reference channel to avoid inaccurate information and manage risks. About the price. This is especially necessary for businesses to choose the right direction, recover quickly in the “post-Covid-19 epidemic” period.
Regulate reasonable export goods
Facing the complicated developments of the Covid-19 epidemic, the Ministry of Industry and Trade recommends that enterprises regularly update information to regulate the amount of goods to the border gate, in accordance with the situation. In order to minimize the risks and negative impacts, the Ministry of Industry and Trade proposes the local People’s Committee to coordinate and direct the local authorities to review, make specific statistics and detail the output of each commodity. agricultural products and fruits that have been and are about to be harvested; quality standards; competitiveness of the aforementioned goods to evaluate their ability and develop a consumption diversion plan. M. War
Get support after translation
According to information from the State Capital Management Committee at Enterprises, Airports Corporation of Vietnam (ACV) is facing a number of problems related to the management mechanism, exploitation and investment of airfield assets and investment. investment in airport infrastructure.
In which, the airport is the most important airport infrastructure system, deciding the airport business market. The airfield items must be managed and operated synchronously and continuously by an operator, according to the regulations of the International Civil Aviation Organization (ICAO). On the other hand, the investment in upgrading and expanding the airport according to the airport planning requires a huge source of capital, while the revenue from take-off prices cannot be compensated and the budget is limited. ACV reported and the State Capital Management Committee in enterprises submitted a written request to the Government Office to report to the Prime Minister for approval of the plan to hand over properties of the flight zone to ACV in the form of increasing state capital at ACV. Accordingly, the increase in charter capital of ACV on the basis of state shareholders’ capital contribution equal to the value of airfield assets.
Regarding investment in airport infrastructure, ACV has encountered problems in a number of legal issues related to investment processes and procedures; investment rights; allocation…
Meanwhile, affected by the epidemic, ACV said that through a preliminary assessment, by the end of 2020, the total volume of transportation decreased by more than 35 million passengers, profit was estimated to decrease by 6,000 billion dong compared to the year plan. . Therefore, ACV recommends that the Government consider and create favorable conditions for mechanisms and policies to speed up the implementation of investment projects, especially with the two above projects to meet the exploitation needs. when the market recovers.
Similarly, the Vietnam National Shipping Lines to the State Bank of Vietnam propose to the State Capital Management Committee at the enterprise to send a document to the Ministry of Finance and the Vietnam Development Bank to write off the outstanding loan interest for newly built and frozen ships. At the same time, it is suggested that foreign commercial banks should reduce lending interest rates for enterprises of the corporation, and freeze the principal. In particular, it is proposed to the Ministry of Industry and Trade to call on the Chinese side to use Vietnam’s sea transportation services to transport import and export goods during the period when the road border gate is closed. T. Duong
