How Coronavirus (nCoV) affects Vietnam Trade
An epidemic of late 2019 novel Coronavirus is not only effecting mainland China but to many other countries, included Vietnam. China is currently the 3rd biggest export market of Vietnam for agri-products, furniture; the biggest import market of Vietnam for machinery, raw materials of textile, footwear, plastic, chemical, steel, mobile and accessories.
In shipping, Lunar New Year Holidays time is usually considered “low season” in about two weeks, but in this year its end has not be seen yet. Many factories in China have been suspended to lead to low supply of products which are mainly raw materials to Vietnam products, then shipping lines – such as Maersk, MSC, Happag Lloyd, CMA-CGM, etc had to adjusted their routes with less voyages and slot supply to/from China and Vietnam. In some area, vessels are stuck in ports waiting for quarantine, lift on/off at port due to shortage of workers. There are some signs of port congestion in Cat Lai, Caimep-Thivai port clusters as side-effects. Cross-border trucking is also reduced because of restriction of both governments.
In domino affects, factories in Vietnam are shortage of raw materials lead to lower production, less jobs for workers, then less and less cargo to export to worldwide destinations. Some experts gave warnings that the importers/exporters should consider of air/rail transportation or dealing with other countries to solve the issues. The affection may be more serious in late of February if the pneumonia outbreak can not stop soon.