Recently, the Ministry of Industry and Trade announced that, Vietnam is benefiting from the disruption of global supply chains, and manufacturers are seeking to diversify supply, including from Vietnam.
Besides, it forecast Vietnam's foreign trade to remain robust as free trade agreements are gradually being implemented in a more comprehensive and effective manner.
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| Photo for illustration. Source: CTV. |
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement will continue to smooth the way for Vietnamese goods to enter partner markets with preferential tariffs.
According to economic experts, this is an opportunity for Vietnam to boost its exports of consumer and industrial products. However, the domestic exporters still face difficulties amid COVID-19 pandemic such as social distancing, high transport costs.
They said that, though the impact is not too serious yet, there is cause for worry since we do not know when the pandemic would be controlled. If social distancing is prolonged, it will definitely affect export orders signed with foreign partners.
In particular, the increase in transport costs is eating into companies’ profits but they have to accept it. Cancellation of orders or failure to deliver in time would undermine the company’s prestige and efforts to find customers in future. It requires support from the Government if they are to sustain the growth.
Truong Dinh Hoe, Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said he has petitioned the Ministry of Agriculture and Rural Development to resolve the problem of lack of containers for exports and reduce the growing freight rates.
In April, freight for a 40-foot container to the west coast of the US was around US$5,000, but now it is more than US$10,000. It used to be less than US$1,000 during pre-pandemic times. Freight rates to Europe are also at high levels of US$7,000-8,000.
