Binh Duong: Decrease in import turnover of raw material from China

Foster Electric Vietnam company checked body temperature of workers before each shift

Enterprises focus on Covid-19 prevention

Tran Hung Dao, CEO of Foster Electric Vietnam Co. Ltd said that to limit the spread of Covid-19, more than 1,000 workers at the company have been equipped with masks. The company also arranged an area to wash hands with antiseptic liquid before going to work and after leaving. The company has equipped body infrared thermometers for workers at the beginning of working hours and during the day and set up a dining table with few people to prevent epidemics. The company also has a factory in China, so information exchange about working tasks has been conducted via phone and email. Therefore, up to now, operations at the company have been maintained and not impacted by the disease.

Washing hand area at Foster Electric Vietnam company. Photo: T.Dịu

For enterprises employing foreign experts and workers who returned from epidemic areas, trade unions at all levels should work with enterprises' owners to supervise the health checks, carry out isolation in accordance with regulations of the Ministry of Health and propagating so that employees do not panic and worry which could lead to stopping work for unjustified reasons. Bowker Vietnam and Premier Global have brought 76 foreign experts and workers for health check-ups. Pai Hong Co., Ltd. cooperated with Bau Bang District Medical Center to organise screening for 17 Chinese experts; at the same time, instructing self-isolation in dormitories.

Edwin Van Der Sloot, General Director of Scancom Vietnam said the company's main markets were Europe, US and China. Facing the epidemic, the company temporarily stopped exporting goods to China but this did not affect the overall business plan. Foreign experts and workers who returned to the company had come to work on schedule and strictly implemented medical examinations to ensure their health and prevent infection in the community. Company leaders also allowed 120 workers to stay home to care for their children until schools re-open.

Vietnam has signed and implemented 13 free trade agreements (FTAs), which have brought into play the significant effects on import-export activities. However, according to some enterprises, to shift the import and export to markets with FTA for minimising supply pressure from China, if it was possible, it could only solve a part of problems facing by industries. Manufacturing enterprises also believed not all raw materials could shift to new markets, even if they accepted higher prices.

Forecasting reduction of revenue would be about 450 billion

Through reviewing and evaluating the situation of the Covid-19 epidemic related to import-export activities, especially import-export with China, Binh Duong Customs Department said some manufacturing enterprises depend on imported materials from China such as textile (imported yarn, fabric), electronics and consumer goods (components and accessories imported from China) may face a shortage of production materials in the near future (in the second and third quarter). From the beginning of 2020 to February 14, 2020, the amount of goods imported from China by Binh Duong Customs reached a turnover of $147.39 million, down 14.15 percent over the same period of the year with the tax VND 406.61 billion.

In addition, according to reports of some Vietnamese enterprises importing raw materials from China, the source of imported raw materials was limited because some Chinese companies have not re-operated yet. If they had operated, they would not have reached their full capacity. Machinery and equipment serving for new projects, spare parts and preparation formulas need Chinese technical experts, but some of them have not come to Vietnam yet. Some enterprises did not import directly from China but from other countries such as India and Taiwan also affected because raw materials were imported from China and then manufactured and supplied to Vietnam

Due to businesses directly affected by the Covid-19 epidemic, it is forecast the revenue of Binh Duong Customs Department in 2020 would be about VND 450 billion. Facing this, Binh Duong Customs Department has deployed measures and plans to supplement revenue sources such as directing Customs branches to firmly grasp information on import-export situation of enterprises, of that paying attention, grasping the situation of regular operations for enterprises having large revenues to timely support, promptly remove difficulties and problems and facilitate to ensure revenue sources in 2020.

At the same time, grasping the difficulties of enterprises due to the impact of the epidemic such as late submission of importdossiers due to sending via airway to timely handle and support enterprises.