“A blessing in disguise” for logistics companies

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A Customs Newspaper reporter interviewed Mr. Nguyen Tuong (pictured), Deputy Secretary General of Vietnam Logistics Association.

Mr. Nguyen Tuong, Deputy General Secretary of Vietnam Logistics Association

Could you share the specific effects of the COVID-19 epidemic on logistics?

At present, we cannot quantify accurately, but I confirm that there is a significant negative impact of the Covid-19 epidemic on Vietnam's economic sectors, including logistics.

Specifically, due to the complicated developments of the COVID-19 epidemic, the import and export of goods has been affected, especially the transport of goods between Vietnam and China. Export industries along the land border and small quotas to China such as agricultural products, aquatic products, and foodwill be significantly affected in the short term. As a transportation service industry, logistics enterprises, such as warehousing and road transport enterprises, are certainly affected by the damage.

For shipping lines, currently 92% of Vietnam's import and export goods are via sea, so the impact of Covid-19 epidemic is less than road transport enterprises. However, Hai Phong Port has also requested that all ships traveling from Chinese ports to Hai Phong port area within 14 days will have to do medical quarantine at the Hon Dau anchor. This is also a difficulty for businesses. From the difficulties on revenue, the profit of logistics enterprises has alsodeclined.

However, it is "a blessing in disguise", because it is the beginning of the year now, import and export goods are still low, normally in every year, so the transport of goods will increase in the range from February to March of the Lunar calendar. Thanks to that, the impact of this epidemic on logistics enterprises is also more limited.

In addition, the trade transactions or trade promotion delegations of some logistics enterprises have been delayed due to problems, so they waited until the epidemic was under control.

How do logistics companies prepare and take actions to cope with the Covid-19 epidemic, sir?

Currently, businesses are preparing conditions such as strengthening people, warehousing activities as soon as the epidemic is under control, businesses will be ready to enter the "track" when goods transport smoothly.

In order to support import-export businesses, especially agricultural import-export enterprises, the Vietnam Logistics Association has recommended that members and logistics enterprises reduce 10-20% storage and warehousing cost, transportation costs, loading and unloading goods, especially cold storage.This helps businesses, trade centers and supermarkets increase purchasing of agricultural products of farmers. At the same time, many transport businesses are also willing to assist import-export businesses in the transport of goods domestically.

This is a practical support bylogistics enterprises to help the efforts of the Government and the population in the prevention of epidemics, thereby creating a close connection between logistics enterprises and domestic business, support each other and farmers to reduce the damage caused by Covid-19 epidemic.

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At least 10 member enterprises now actively agree to reduce 10-20% of storage fees, especially cold storage, to support farmers and import-export business affected by the Covid-19 disaster.

Thank you, Sir!