Exports suffer during Covid-19 crisis as orders are cancelled or delayed
Some countries have temporarily closed shopping centers and asked people to stay at home to prevent the spread of coronavirus, which has affected exports of Vietnamese enterprises.
Dien Quang Hiep, chair of the Binh Duong Woodwork Processing Association, said Vietnamese enterprises in the industry are facing big difficulties in exporting products due to the epidemic.
In the US and Europe, many shopping malls have announced temporary closure or reduced opening hours. People have been to'd or recommended to stay at home, which has led to a sharp decrease in demand.
“As people stay at home to avoid the epidemic, there are no buyers,” Hiep said.
“In Vietnam, the domestic demand is modest as the living standards remain low,” he explained why wooden furniture manufacturers cannot rely on the domestic market.
|Some countries have temporarily closed shopping centers and asked people to stay at home to prevent the spread of coronavirus, which has affected exports of Vietnamese enterprises|
Affirming that the woodwork industry is slowing down, Hiep said enterprises have to manage to survive the current moment. He called on the government to support enterprises with credit and tax policies.
“Enterprises are now in a hibernation period and they need support from the government to go through the period before they resume operation,” he said.
Chair of the Handicraft and Wood Industry Association of HCM City (Hawa) Pham Xuan Hong also said it is now a very difficult time for textile and garment companies.
Their partners from the US and EU have issued notices of suspending, delaying or canceling imports from Vietnam.
The problem of Vietnam’s textile and garment companies no longer lies in the lack of materials as supply sources from China have resumed, but there is an inability to export.
The enterprises have spent big money to import fabric and materials to implement OEM/FOB orders. As they cannot export products, they don’t know when they can get the money back, while they have to pay bank loan interest and pay workers.
Pham Tat Thang, a senior researcher at the Ministry of Industry and Trade (MOIT), confirmed that Covid-19 has had very significant impact on Vietnam’s exports.
He said the order cancellations from European and American importers is expected as the demand in the markets has decreased because people have cut their spending.
According to Thang, it is difficult to find other markets for unsold products now, so enterprises should consider storing the products and wait for opportunities.
At MOIT’s meeting on March 20, Ta Hoang Linh, director of the Europe-America Market Department, said the US Embassy said the country was not applying any measure to prevent its enterprises from accessing Vietnamese goods.
The EU delegation in Vietnam has also said the same, although EU countries have closed their borders.
The Ministry of Industry and Trade has been cracking down on profiteers for selling face masks, hand sanitisers and other items for inflating prices due to the high demand caused by the ravaging COVID-19 epidemic.
Export of fresh fruit to China via train using refrigerated containers has contributed to curbing the spread of the COVID-19 pandemic.