Vietnamese companies which import feedstock and raw material from China have started looking at alternative sources. The Coronavirus has affected Vietnam’s trade not only with China but also other markets and started hurting Vietnamese businesses. The impacts include prolonged delivery times and customs clearance due to the quarantine requirements on both sides. Trade by road, rail and air with China has slumped. The epidemic has caused Chinese businesses to shut down production. Vietnam’s textile industry sources a significant proportion of feedstock from China. Since many textile plants in China are likely to be closed until the end of February, or even longer, supply to Vietnam would be hard hit. If the epidemic continues for the next one or two months, Vietnam’s economy would be in trouble. Companies, especially small and medium-sized enterprises, need support in the form of preferential loans and access to new technologies to sustain their business.
With Chinese goods not available, Vietnam has been unable to source materials, which has affected its production and exports to third markets. Many textile and footwear enterprises are therefore looking at raw material imports from other markets such as South Korea, India, Bangladesh, and Brazil.
The epidemic has had a significant impact on public health, transportation, tourism, education, and, importantly, trade and commerce.