In the afternoon of March 20, the Ministry of Industry and Trade held an emergency meeting to discuss solutions to remove difficulties for businesses, especially textiles and garments, and the export of agricultural and aquatic products, in the context of many markets stagnant due to measures. COVID-19 disease control is booming worldwide.
Minister of Industry and Trade Tran Tuan Anh chaired the meeting on the afternoon of March 20. Photo: VGP / Phan Trang
Agriculture and textile crisis
The report of the Ministry of Industry and Trade stated that, in the first 2 months, Vietnam exported 39.0 billion USD, up 8.4%. In particular, the enterprise sector with 100% domestic capital reached 12.5 billion USD, up 16.6%; FDI sector (including crude oil) was 26.6 billion USD, up by 5.3%.
However, due to the impact of the COVID-19 epidemic, most agricultural products saw a decline in turnover. Export turnover of agricultural, forestry and aquatic products in the first 2 months stood at US $ 3.35 billion, down 4.9%.
In particular, fruits and vegetables (turnover decreased by 8.8% over the same period), seafood (down 10.7%), rubber (down 19.9%). Products that may be affected in the medium term due to reduced demand include coffee (down 1.9%), cashew (down 8.4%) due to the system of restaurants, tourism activities, The transport volume has decreased, leading to a decrease in the demand for these products.
The group of processed industrial goods reached US $ 33.25 billion, up 10.2% over the same period, contributing to offset the decline in exports of agricultural and fishery products. However, with processing industries, the supply of raw materials for production and export faces many difficulties not only for Vietnamese enterprises but also for other countries when they are highly dependent on raw materials. Chinese material.
In particular, the group of textiles and clothing was relatively affected. In particular, the export of fibers and textile fibers decreased by 7.2%; fabric blinds, technical fabrics down 3.4%; textiles and garments only increased 2.2% (the same period last year increased by 11.8%).
Imports of intermediate goods (textile, garment, leather, shoes, pharmaceutical raw materials) all decreased over the same period last year. Textile and footwear materials and accessories imported from China accounted for about 70%, followed by South Korea with 11%. While these two countries are affected by the COVID-19 epidemic, the source of raw materials for production is reduced. In the first 2 months of this year, the country imported a total of 734.7 million USD of raw materials for the textile and footwear industry, down 8.7% over the same period last year (the same period increased by 6.7%).
According to Nguyen Cam Trang, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), China's production activities have begun to recover after the country controlled the epidemic. auxiliary materials have had many positive developments, the source of goods has been cleared.
“However, the major export markets of Vietnam such as the European Union (EU) or the United States are declining sharply due to outbreaks. In recent days, the phenomenon of importing enterprises has received information to delay or delay delivery of goods, causing difficulties for textile and garment enterprises, ”said Ms. Trang.
Mr. Le Tien Truong, General Director of Vietnam National Textile and Garment Group (Vinatex) called partners to stop orders “as an unprecedented crisis for more than 20 years of operation” of the Group. Mr. Truong calculated, the number of canceled applications is equivalent to the production capacity in half a month of many units under Vinatex, about 3-3.5% of the whole year 2020 output.
There is an emergency response plan
Mr. Ta Hoang Linh, Director of the European and American Department (Ministry of Industry and Trade), said that as soon as there were reports of some EU and US partners announcing the halt of textile and apparel import, the agency worked with the Delegation. European Union (EU) in Vietnam and the US Embassy.
According to Mr. Linh, the Delegation of the European Union affirmed that the EU's closure of the border was only a quarantine measure to ensure the health of the people. Goods and services to the EU continue to circulate, especially essential goods such as food, medicine …
Similarly, the US Embassy also affirmed that no measures were taken to prevent market access of Vietnamese goods to the US.
However, the Minister of Industry and Trade acknowledged that the postponement and cancellation of orders from two major EU and US markets forced the authorities to immediately calculate the plan and reduce damage to enterprises.
Minister Tran Tuan Anh requested that the Departments of foreign markets and the Department of Planning and Investment update the developments in partner economies on the situation of epidemics and policies affecting trade and supply chains. From the practical knowledge, the departments and agencies take the initiative in analyzing and evaluating coping scenarios to get updated and timely information to report to the Government. On the other hand, the units need to provide sufficient and timely information to businesses to take the initiative in rebuilding plans, restructuring, taking advantage of opportunities to recover and develop after the epidemic is checked. control.
“The Deputy Ministers are urgently in charge of working with enterprises and industries (textiles, footwear, electronics, cars, etc.) to quantify, identify difficulties, market challenges, credit and workers. … make plans, programs and proposals to the Government to have policies to support businesses, “the Minister requested.
For agricultural products, under the guidance of the Government, the Ministry of Industry and Trade and other ministries and localities, the transactions through border gates with China have been gradually removed. Currently, many localities in China have downgraded emergency levels such as Guangdong has been downgraded to level 2, Van Nam has downgraded to level 3 … Import and export activities at some Viet Trung border gates have returned to normal. Normally, the clearance process is more positive than the beginning of February but it is still difficult because the loading force of the Chinese side is still thin.
The representative of the Import-Export Department said that early next week will work with businesses and industry associations to find out difficulties and propose solutions to solve difficulties for businesses. At the same time, continue to closely monitor the situation of import and export through border gates with China, Laos and Cambodia; taking measures to continue clearing and creating favorable conditions for import-export activities across the land border.
Phan Trang
Source: Government Newspaper
