Production and export during the days of social distancing

VCN - As Ho Chi Minh City and 18 southern provinces and cities have extended the implementation of social distancing under Directive 16 of the Prime Minister, all areas of social life, production and export activities have been affected. Many temporary solutions have been issued to remove difficulties and support production and export activities of enterprises.
Hanoi Customs ensures customs clearance during social distancing Hanoi Customs ensures customs clearance during social distancing
Can Tho, Kien Giang Customs ensure customs clearance during social distancing Can Tho, Kien Giang Customs ensure customs clearance during social distancing
Dong Nai Customs: Maintain normal status for import and export activities Dong Nai Customs: Maintain normal status for import and export activities
Production and export during the days of social distancing
The difficulties in circulation of imported goods at Cat Lai port are being urgently removed. Photo: VNA

Maintain operation in difficult times

In the days of social distancing, to maintain production activities, enterprises must meet the requirements of "3 in one spot" or "1 route 2 locations". Although businesses all agree to implement the models, in the process of implementation, many difficulties have arisen.

As reflected by enterprises, the factory is just a place of production, so the "3 in one spot" production model is expensive and difficult to operate. Businesses must periodically test for Covid-19 for workers, arrange meals and rest for workers, resulting in significant costs. However, the biggest difficulty of enterprises is retaining workers and raw materials for production and business. There are businesses that can arrange the "3 in one spot" model but many workers are skeptical, worry about their children and families, do not want to focus on work, so they can only attract 30-40% of staff. Some enterprise can do the "3 in one spot" model, but faces difficulties in sourcing production materials.

Due to the travel restrictions, or the different regulations on the "passport" of each locality, affecting the transportation of goods, there were times when the source of raw materials was blocked. There are cases where efforts have been made to keep workers and take the initiative in the source of raw materials, but due to the pandemic, the locality requested to suspend production.

According to Ms. Ta Ha, a market expert of the Vietnam Association of Seafood Exporters and Producers (VASEP), while in the West, shrimp raw materials are in season, businesses can't buy them, so businesses in coastal provinces such as Binh Dinh, Kien Giang and Ba Ria - Vung Tau have reduced their capacity by 20-70% due to a lack of raw materials. The reason is that localities are all distanced to apply strict management measures or some fishing ports are blocked due to Covid-19 cases.

Mr. Pham Hoang Viet, General Director of Sao Ta Food Joint Stock Company (FMC), said that Soc Trang and some western provinces are at the peak of raw shrimp harvesting. However, some farming areas in pandemic-affected areas could not carry out the harvest, and enterprises could not purchase raw materials for production, leading to a situation where some localities are redundant, while the others face a shortage. This situation not only affects production enterprises, but also greatly affects aquaculture farmers and other chains.

Mr. Nguyen Huu Quang, Head of Import-Export Department of Hansoll Vina Co., Ltd (Song Than 1 Industrial Park, Di An, Binh Duong), said that the company has more than 4,000 employees but currently only 100 employees can be arranged according to the "3 in one spot" model.

Accordingly, in order to maintain production, the company currently only executes existing orders and exports finished products to partners rather than importing materials for new orders. Although orders for imported materials have already arrived at the port, they must be stored because there are no production staff.

The company has renegotiated with the partner to extend the delivery time. However, if the pandemic lasts for a long time and production is interrupted, the risk of losing market share is great.

In addition, the current "3 in one spot" regulation also causes many factories to reduce their capacity because they can't meet the requirements. If enterprises can't meet the requirements, the lack of workers also creates a problem in production.

Moreover, due to the implementation of pandemic prevention requirements, many packaging, service and auxiliary materials factories for the seafood industry were closed. Seafood enterprises have to continue looking for alternative suppliers, but most of them have to negotiate to extend the delivery time due to the delay in some production stages.

In such a difficult situation, many businesses decided to overcome challenges to maintain production, because if the factory closes, the production and supply chain will be broken, workers will lose their jobs and have no income. Enterprises believe that maintaining production in the current conditions is not for the profit of enterprises, because the cost is greatly increased, but still choose this option to retain workers, and at the same time maintain the production supply chain to complete export goods supply contracts and limit fines. The desire of businesses at this time is not growth but a focus on fighting the pandemic and desire to get vaccinated soon to keep the health of workers.

Do not let production chains break

Facing problems arising from enterprises, especially problems in the circulation and transportation of goods, ministries and branches issued documents and instructions to remove obstacles.

Recently, on July 29, the Government Office issued an express dispatch requesting not to check at the pandemic control points for vehicles with an identification certificate with a valid QR Code issued by the Transport sector for the transportation of goods in service of construction, production, business, import, export and consumption (except for goods banned from production and trading) on all highways, provincial roads, inter-district roads and urban roads nationwide.

The checking of means of transporting goods when leaving and entering the places of gathering, transshipment and delivery of goods (ports, wharves, railway stations, warehouses, yards, industrial parks, production facilities, etc.) ensures fully complying with pandemic prevention and control requirements, without causing traffic congestion.

Not only removing obstacles in traffic, many problems for import and export goods at the port are also removed by management agencies. According to the Ho Chi Minh City Customs Department, currently, many enterprises have suspended production activities due to blocks or because the conditions "3 in one spot ", "1 route 2 locations" are not guaranteed according to the regulations of the People's Committees of some southern provinces and cities, leading to an increase in backlogs at some seaports with large traffic such as Cat Lai port.

In order to remove difficulties for Cat Lai port, the Ho Chi Minh City Customs Department has sent a written report to the General Department of Customs to to propose the competent authority allow Saigon Newport Corporation to transport backlogged goods from Cat Lai port to Hiep Phuoc Tan Cang port for storage and procedures to reduce the load on Cat Lai port.

At the same time, Ho Chi Minh City Customs Department also proposed to allow Saigon Newport Corporation to temporarily store imported goods at Cai Mep port to wait for independent transportation procedures to the destination without administrative penalties beyond the time limit for customs clearance when the enterprise registers the declaration. This also allows Saigon Newport Corporation to lease ports in the area of Ho Chi Minh City to store goods to reduce the load on Cat Lai port during the Covid-19 pandemic in the southern region.

Understanding enterprises' problems about the quarantine of imported materials, Mr. Bach Duc Luu, Director of Regional VI Sub-Department of Veterinary Medicine, said that on July 27, the Department of Animal Health - Ministry of Agriculture and Rural Development, had a Document 1259/TY-KD on the application of a temporary plan on import quarantine due to the Covid-19 pandemic. Accordingly, the Department of Animal Health requested the Animal Health Sub-Department of Region VI to apply a temporary plan on the quarantine of imported animal products during the implementation of social distancing in accordance with Directive 16.

In which, the import quarantine of terrestrial animal products, for the group of high-risk animal products, every five batches of random sampling of one batch to inspect, test and issue the Certificate of Quarantine; for the group of low-risk animal products, no inspection samples are taken, only records are checked; for consignments that do not have to be sampled, only records shall be checked; for quarantine aquatic animal products for processing and export processing, only records are checked, not the actual status of shipments.

The efforts of enterprises to overcome difficulties, along with the support of the management agencies to remove obstacles, have one only goal, which is to soon overcome the Covid-19 pandemic and return to the "new normal" state.

The groups of solutions to rescue backlogged goods at Cat Lai port

Facing the backlog at the port due to the pandemic, on July 31, leaders of Saigon Newport Corporation announced that they would temporarily stop receiving imported goods from businesses and customers who are stopping production.

Encourage ships entering the port to only receive export goods. Temporarily suspend receiving cold goods transshipped into containers until the end of August 16, 2021. At the same time, Cat Lai port temporarily suspends receiving goods that occupy large yards, such as: super-long, super-heavy cargo, project cargo, oversized, overloaded cargo, etc. from August 5, 2021 until further notice.

On August 2, 2021, at a meeting with relevant agencies and units on the handling of backlogged goods at Cat Lai port, on the basis of opinions exchanged on solutions to difficulties and problems. At Cat Lai port, the Vietnam Maritime Administration and the participating units agreed to implement three main groups of solutions as follows:

Firstly, the group of solutions to increase the capacity to release goods from the port, assigned the Vietnam Maritime Administration in Ho Chi Minh City to coordinate with the Saigon Newport Corporation to review and work specifically with each shipper whose goods are at the port to agree with the goods owner to remove difficulties and obstacles to soon receive goods.

Secondly, the group of solutions to increase the exploitation capacity of the port yard, assigned the Saigon Newport Corporation to actively adjust the container loading between the import container yards, export containers and empty containers accordingly to increase the receiving capacity for imported containers; maximize the capacity of loading and unloading containers on the yard; move empty containers out of the port; adjust the time to receive the export container.

Thirdly, the group of solutions to reduce the amount of goods imported to the port, requesting to temporarily stop transferring imported containers from Cai Mep area ports, Tan Cang Hiep Phuoc port to Tan Cang Cat Lai port (goods owners receive directly in Cai Mep or Tan Cang Hiep Phuoc port, ICDs, ports in the Mekong Delta near their factories and enterprises), except for special cases, based on the receiving capacity of Tan Cang Cat port assigned to Saigon Newport Corporation to actively handle; working with shippers and shipping lines to limit the number of ships or delay the import of imported containers to the port for imported goods from businesses and factories that are reducing production scale and output.

On the basis of surveying the receiving capacity of neighboring ports in the region, the Vietnam Maritime Administration has assigned the Port Authority of Ho Chi Minh City to develop a plan to regulate the route of ships arriving at Cat Lai port to the above-mentioned neighboring ports in case Cat Lai port has to temporarily stop receiving ships.

By Le Thu/ Kieu Oanh

Related News

Facilitates import and export enterprises amid difficult context

Facilitates import and export enterprises amid difficult context

VCN – Making great efforts to create favourable conditions for businesses and promoting import and export growth are key contents concluded by Deputy Director General Hoang Viet Cuong at the online conference to review performance in the first quarter and set out the task in the second quarter of 2023, held by the General Department of Vietnam Customs (GDVC) on April 4.
Enterprises have the right to pre-determine HS codes

Enterprises have the right to pre-determine HS codes

VCN - At the dialogue conference between Ho Chi Minh City Customs Department and import-export enterprises at the weekend, enterprises raised many problems related to HS code application, and post-clearance audit.
Customs seizes 20 drug-related offences

Customs seizes 20 drug-related offences

VCN – In the first quarter of 2023, the Customs sector has tackled many cases of transnational drug trafficking and transportation, the General Department of Vietnam Customs released on April 3.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.

Latest News

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Although holding the number one position in the world in exporting cashew kernels for many years, the position of Vietnam's cashew industry in the world cashew value chain is very small because it mainly exports kernels with preliminary treatment.

More News

HCM City’s industrial production index down 0.9% in Q1

HCM City’s industrial production index down 0.9% in Q1

Ho Chi Minh City’s Index of Industrial Production (IIP) in the first quarter of 2023 declined by 0.9% compared to the same period last year, the municipal Department of Industry and Trade reported at a press conference on April 3.
Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries export value was estimated at 1.85 billion USD in the first quarter (Q1) of this year, a fall of 27% compared to the same period last year due to lower consumption and import demand under the impacts of inflation and economic recession, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Quang Ninh aims to attract quality FDI inflows

Quang Ninh aims to attract quality FDI inflows

The northern coastal province of Quang Ninh has strengthened measures to attract quality foreign direct investment (FDI) inflows, especially from big names in the processing-manufacturing industry.
Exports face many difficulties

Exports face many difficulties

VCN - In the first months of 2023, the absence of export orders plus the downward trend in commodity prices have slowed down trade activities.
Manufacturing enterprises increase their competitiveness thanks to digital transformation

Manufacturing enterprises increase their competitiveness thanks to digital transformation

VCN - Overcoming difficulties in 2023 requires manufacturing enterprises to self-improve and innovate. Digital technology is one of the effective solutions to help manufacturing businesses grow and compete.
32nd Việt Nam Expo promises to boost business linkages

32nd Việt Nam Expo promises to boost business linkages

The 32nd Việt Nam International Exhibition (Vietnam Expo) will take place in Hà Nội from April 5-8 with the participation of more than 500 domestic and foreign enterprieses, the event’s organisers have announced.
Prevention of price risks before news that Indonesia increases rice imports in reserve

Prevention of price risks before news that Indonesia increases rice imports in reserve

VCN - In response to demand signals from key markets such as Indonesia and the Philippines, the Import-Export Department (Ministry of Industry and Trade) suggested that rice exporters actively monitor the market situation and fully assess the opportunities as well as risks to build a trading plan.
Japanese investors highly appreciate Vietnamese property market

Japanese investors highly appreciate Vietnamese property market

Representatives from around 180 Japanese businesses and investors on April 1 attended a Tokyo workshop on Vietnamese real estate, during which many of them highly appreciated the potential of Vietnam’s property market.
Seafood enterprises propose to remove obstacles from exporting to the EU

Seafood enterprises propose to remove obstacles from exporting to the EU

VCN - Seafood enterprises are facing inadequacies in applying for material certification (S/C) and food safety certificates (H/C), which affects the production and export of seafood to the EU.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.
Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Looking back to 2022, while the export turnover of the cashew industry reached US $ 3.08 billion, the import turnover of raw cashews consumed US $ 2.678 billion.
Mobile Version