Deputy Minister of Industry and Trade Tran Quoc Khanh speaks at the meeting. (Photo: congthuong.vn)Hanoi (VNA) – Vietnam has planned drastic measures to supportexports following the suspension of cross-border trade with China due to thenovel coronavirus, known as 2019-nCoV.
General Director of the Foreign Trade Agency under the Ministry of Industry andTrade Phan Van Chinh said at a meeting on February 4 that Vietnam shipped over41 billion USD worth of products to China in 2019, of which the agro-forestry-fisherysector contributed 7 billion USD.
Around 100 containers of dragon fruit are stuck in Lao Cai province after Chinasuspended imports of Vietnamese goods via the Lao Cai border gate on January30, he said.
Tens of thousands of tonnes of dragon fruit and watermelon had also piled upnationwide, Chinh added.
Although the Nghi Quan Friendship Border Gate in Lang Son province opened inFebruary 3, traders must wait until February 8 to exchange goods as China hasbanned mass gatherings, making it difficult for importers to receive goods.
Chinh noted that if the nCoV outbreak lasts 1-2 months, Vietnam will suffer aloss of between 200-300 million USD in export revenue of agro-forestry-fisheryproducts. The damage could be rise to 600-800 million USD if the outbreak lasts3-6 months.
Regarding measures to promote agricultural exports, Chinh said that localitiesshould discuss suitable delivery options with their Chinese partners, seek newmarkets for their products, and promote domestic consumption.
Chinh said the garment and textiles, footwear, and electronic component sectorswill suffer a lot from the nCoV outbreak as they rely much on materials importedfrom China.
They could seek alternative sources, but import prices could be higher, makingVietnamese products less competitive, he said.
Meanwhile, a representative from the ministry’s Planning Department stressedthe need to evaluate the impacts of nCoV on trade with other foreign countries.Detailed assessments should be conducted on the virus’ influence on localindustrial production and crude oil as well.
For his part, Deputy Minister of Industry and Trade Tran Quoc Khanh orderedcompetent agencies and departments to clarify export items affected by thevirus, and outline specific measures for each.
The same day, the Governor of the State Bank of Vietnamissued Document No.541/NHNN-TD on measures to support relief efforts inresponse to the viral epidemic.
Accordingly, credit institutions should provide sufficient capital forbusinesses so they can continue operating smoothly, and study their customersto apply suitable support measures such as reducing interest rates and debtrescheduling./.
VNA
