Trucks carrying Vietnamese goods lay stranded at the border due to China's strict COVID-19 preventive measures and sluggish customs clearance. (Photo: laodong.vn)Accordingto the General Department of Customs, the country's agricultural product exportsby road to China reached up to 1.58 billion USD in the first eight-monthsof 2021. The ongoing congestion has caused losses of nearly 2trillion VND (87.5 million USD) to export firms so far.
Somefirms have had to turn to air freight to maintain trade flow but itis not cost-effective, costing up to 76 percent more than roadhaulage.
TheMinistry of Industry and Trade (MOIT) thus urged firms to consider switchingfrom road to maritime transportation and redirect trade routes to otherprovinces to relieve ongoing congestion.
“Wewill opt for maritime transportation in the near future because roadtransportation is too risky. Road congestion every couple of yearshas really put us off,” said Tran Ngoc Hiep, Director of Thanh Long Hoang Hau Co.,Ltd.
NguyenThi Diem Hang, vice chairman of VinaNutri Food, noted gridlock at Lang Sonas a sign that firms were relying too much on unofficial channels.Trade via these channels might incur lower costs but carry higher risks as unofficialexports could face suspension anytime China tightens their regulations.
Therefore,firms are recommended to do business with China more formally toavoid any risk from informal business practices. For instance, trade withChinese partners should be bound by written contracts with a clear clause ofdelivery and be conducted via official channels.
“Tosustain exports to China, firms need to scrap unofficial trade practices andshift their focus from quantity to quality and value,” Hang added.
MOITalso urged local authorities to keep a close watch on trade activities atborder gates and post the latest news on provincial web portals tokeep firms well-informed about any changes.
Anothersolution is to extend the domestic market and diversify foreign markets throughtrade promotion, supply-demand connection and application of e-commerce inagricultural trade to reduce the dependence on the Chinese market.
Infact, many firms have begun to find customers elsewhere since China raised thebar on fruits and vegetables exported to the country in 2019.
However,China still remained Vietnam’s second-largest export market foragricultural-forestry-fishery products in 2021, with an export revenue of 8.4billion USD in the first eleven months.
Bilateralnegotiations to increase the working time and efficiency of customs officers atborder gates have also been discussed to avert any future congestion.Currently, a number of border gates are processing customs proceduresat a rate much below normal.
ByDecember 27, more than 4,000 vehicles, mostly loaded with perishableagricultural produce, are still stuck in Lang Son. Regardless, only Huu Nghiand Chi Ma border gates are processing customs clearance with a sluggishaverage rate of eight vehicles per hour.
AsTan Thanh continues to be temporarily closed, truck drivers stranded atthis border gate would need food and shelter to live for many days to come. Inorder to help these drivers out, Lang Son authorities have granted themfinancial support to cover part of their parking and livingcosts.
Meanwhile,the Private Sector Development Committee (Committee IV) has come up withdifferent solutions to the problem.
Fortrucks lying stranded at border gates, notably those loaded with agri-fisheryexports and raw materials, Committee IV proposes higher-level meetings betweenthe two countries to look at ways to help the trucks move on.
Foragricultural produce ready for delivery prior to the Tet holiday, Committee IV urges thegovernment to work with local authorities to put thetransport such produce on hold until the situation at the bordergates improves.
Farmersare also called on to delay harvesting and put crops in storage tostem new commodity flows to the border.
Communicationchannels should be used to better regulate the trade flowat border gates, the committee added.
Inthe long-term, it is necessary to invest more in logistic infrastructure andimprove the capacities of warehouses and car parks in border provinces.
Asof January 1, 2022, foreign firms producing food exported to China are requiredto print codes granted by Chinese customs authorities or Vietnamese authorisedagencies on both sides of their product packages.
AnyVietnamese food exporter that has yet to apply for the codes can submitapplications to relevant agencies or online.
ByDecember 24, Chinese customs authorities had granted 31,988 codes toforeign export firms, of which 1,045 were Vietnamese./.
VNA
