return icon

Experts seek ways for Vietnam to have healthier supply chain

Though the pandemic has seriously impacted the world and Vietnam, it has accelerated the supply chain shift by diversifying, regionalising the production chain and scaling up global value chains.


A Samsung Vietnam production line. — Photo

Tran Toan Thang, director of the Department of Industrial Forecast and Enterprise Development (DIFED), National Center for Economic Forecast and Information (NCIF), told a seminar hosted by the University of Social Sciences and Humanities (USSH) in collaboration with the Konrad-Adenauer-Stiftung Foundation (KAS) of Germany on the pandemic influence on the global supply chain and local logistics sector and business operations in Hanoi on October 14: “Though there is global prospects for production, the impact from the pandemic will affect enterprises at least until 2023.”

Thang said most of the production chains that Viet Nam can access or have the potential to move to are suitable with the import and export trend of Viet Nam, saying: “In the long term, Viet Nam's import-export activities will grow well.”

While Thang saw a better future for import-export activities, Tran Dinh Thien, former Director of the Vietnam Institute of Economics, said the pandemic has revealed the limitations of the current global supply chain, specifically when the global economic dependence on “one locality" production, mentioning logistics was among issues for the activities.

Thien said the pandemic has dealt a heavy blow to business production, disrupting global supply chains and leading to high freight rates and a shortage of workforce for production.

In addition, social distancing measures and travel restrictions, along with COVID-19 testing fees, have disrupted production lines and put additional financial burdens on businesses.

At the seminar, Prof. Dr. Heribert Dieter, Institute of International and Security Affairs, Germany, said that the main obstacle to the recovery of the supply chain was transportation costs, adding the cost of shipping containers from East Asia to Europe had increased by nearly 10 times.

The German expert said the shift of the supply chain would create opportunities for some economies like Viet Nam or India but the negative impacts on the supply chain would continue to linger, adding it would be difficult for transportation costs to return to normal levels before 2023 or 2024.

In this case, Nguyen Anh Tuan, Deputy Director of the Institute for Diplomatic Strategy Studies, Vietnam Diplomatic Academy, suggested local anti-pandemic work must pay attention to the economic stability, saying: “The COVID-19 prevention strategy must be accompanied by a unified logistics service strategy to avoid sudden and unexpected social distancing that affects transport activities."

Tuan also recommended renewing the approach and thinking on supply chain issues, making plans and scenarios for options suitable to the pandemic situation as well as quickly and widely implement measures to support post-pandemic recovery.

He also suggested promoting local production to replace imports and at the same time to diversify sources of importing intermediate goods, avoiding dependence on a few single sources of goods.

Viet Nam should also increase the production of essential commodities such as food and healthcare, support small and medium-sized enterprises, and prioritise the development of qualified labour resources to keep pace with the transformation of the digital economy.

Thien, former director of the Vietnam Institute of Economics, said as China, Europe and the US were gradually turning to high-tech economies, it explained the strong recovery in the second pandemic year while the digital economy helped to solve some physical problems such as supply chains and logistics.

Therefore, he proposed to apply high technology for economic activities and to restructure the economy sustainably at the global level with good forecasts to avoid unusual risks.

At the seminar, Florian Feyerabend, Chief Representative of KAS, said: "Viet Nam is a major trading partner among ASEAN and also the top choice of investment destinations in this region.”

After social distancing measures are lifted and the vaccination campaign ramped up, a new normal will begin with economic dynamics restarting, he said: “Viet Nam will always be an attractive destination for foreign investors, especially Germany.”

Source: VNS


Vietnam’s economic growth counts on high-tech FDI

Vietnam’s economic growth has been accelerating in 2022, with experts considering high-tech foreign investments as a driver.

The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.

Woodwork exports to EU, US drop as consumers cut spending

Many woodwork manufacturers complain that exports have been sliding as people in target markets have been tightening their purse strings.

Vietnam: new destination for multinationals to set up R&D centers

Vietnam wants to upgrade foreign direct investment (FDI) quality by manufacturing products with higher hi-tech and added value, and multinationals are also striving to do this after many years in Vietnam.

Huge real estate projects seek new investors

Many investors have quit large-scale investment projects capitalized at trillions of dong.


Work starts on Tan Van-Nhon Trach section of HCM City’s Ring Road No.3

Three Vietnamese airlines named among world’s best air services

Vietnam Airlines, Vietjet Air, and Bamboo Airways have been honoured in different categories by Skytrax, a UK-based site which ranks airlines and airports.

Vietnam Days Abroad 2022 to take place in Austria, India, RoK

Vietnam Days Abroad 2022 will be held in Austria, India, and the Republic of Korea (RoK) on the occasion of the anniversaries of diplomatic relations between Vietnam and these countries.

UN backs Vietnam’s development priorities: Secretary-General

The United Nations (UN) will continue paying attention to and support Vietnam's development priorities towards green and sustainable orientations, and just transition, especially in terms of financial access.

Vietnam merits seat at UN Human Rights Council: Washington Times

The Washington Times has published an article in which it supports Vietnam's candidacy for the United Nations Human Rights Council (UNHRC) for the 2023-2025 term.

Storm Noru to enter East Sea, localities warned to stay alert

The National Centre for Hydro-Meteorological Forecasting has predicted that storm Noru will enter the East Sea on September 25 evening, and recommended coastal localities to brace themselves for the storm.

Vietnam plans to vaccinate under-5 children against COVID-19 if there’s scientific basis

The Ministry of Health has asked provinces to calculate the number of children from 6 months old to under 5 years old to prepare a plan on COVID-19 vaccination for them when there are enough conditions and scientific basis.


Untapped opportunities for Vietnamese pepper exports to UK