Experts seek ways for Viet Nam to have healthier supply chain

Though the pandemic has seriously impacted the world and Viet Nam, it has accelerated the supply chain shift by diversifying, regionalising the production chain and scaling up global value chains.

A Samsung Vietnam production line. — Photo diendandoanhnghiep.vn

Though the pandemic has seriously impacted the world and Việt Nam, it has accelerated the supply chain shift by persifying, regionalising the production chain and scaling up global value chains, said an expert in Hà Nội on October 14.

Trần Toàn Thắng, director of the Department of Industrial Forecast and Enterprise Development (DIFED), National Center for Economic Forecast and Information (NCIF), told a seminar hosted by the University of Social Sciences and Humanities (USSH) in collaboration with the Konrad-Adenauer-Stiftung Foundation (KAS) of Germany on the pandemic influence on the global supply chain and local logistics sector and business operations: “Though there is global prospects for production, the impact from the pandemic will affect enterprises at least until 2023.”

Thắng said most of the production chains that Việt Nam can access or have the potential to move to are suitable with the import and export trend of Việt Nam, saying: “In the long term, Việt Nam's import-export activities will grow well.”

While Thắng saw a better future for import-export activities, Trần Đình Thiên, former Director of the Vietnam Institute of Economics, said the pandemic has revealed the limitations of the current global supply chain, specifically when the global economic dependence on “one locality" production, mentioning logistics was among issues for the activities.

Thiên said the pandemic has dealt a heavy blow to business production, disrupting global supply chains and leading to high freight rates and a shortage of workforce for production.

In addition, social distancing measures and travel restrictions, along with COVID-19 testing fees, have disrupted production lines and put additional financial burdens on businesses.

At the seminar, Prof. Dr. Heribert Dieter, Institute of International and Security Affairs, Germany, said that the main obstacle to the recovery of the supply chain was transportation costs, adding the cost of shipping containers from East Asia to Europe had increased by nearly 10 times.

The German expert said the shift of the supply chain would create opportunities for some economies like Việt Nam or India but the negative impacts on the supply chain would continue to linger, adding it would be difficult for transportation costs to return to normal levels before 2023 or 2024.

In this case, Nguyễn Anh Tuấn, Deputy Director of the Institute for Diplomatic Strategy Studies, Vietnam Diplomatic Academy, suggested local anti-pandemic work must pay attention to the economic stability, saying: “The COVID-19 prevention strategy must be accompanied by a unified logistics service strategy to avoid sudden and unexpected social distancing that affects transport activities."

Tuấn also recommended renewing the approach and thinking on supply chain issues, making plans and scenarios for options suitable to the pandemic situation as well as quickly and widely implement measures to support post-pandemic recovery.

He also suggested promoting local production to replace imports and at the same time to persify sources of importing intermediate goods, avoiding dependence on a few single sources of goods.

Việt Nam should also increase the production of essential commodities such as food and healthcare, support small and medium-sized enterprises, and prioritise the development of qualified labour resources to keep pace with the transformation of the digital economy.

Thiên, former director of the Vietnam Institute of Economics, said as China, Europe and the US were gradually turning to high-tech economies, it explained the strong recovery in the second pandemic year while the digital economy helped to solve some physical problems such as supply chains and logistics.

Therefore, he proposed to apply high technology for economic activities and to restructure the economy sustainably at the global level with good forecasts to avoid unusual risks.

At the seminar, Florian Feyerabend, Chief Representative of KAS, said: "Việt Nam is a major trading partner among ASEAN and also the top choice of investment destinations in this region.”

After social distancing measures are lifted and the vaccination campaign ramped up, a new normal will begin with economic dynamics restarting, he said: “Việt Nam will always be an attractive destination for foreign investors, especially Germany.” — VNS

Source: VNA
vietnamnews.vn

Related News

Electronics industry overcomes challenges to penetrate deep into global supply chain

Electronics industry overcomes challenges to penetrate deep into global supply chain

VCN - In addition to the opportunities from the investment shift in the electronics industry, Vietnamese enterprises also face many challenges in terms of capital, technology and human resources. Ms. Do Thi Thuy Huong, Executive Committee Member of the Vietnam Electronics Industry Association (VEIA), shared about the future directions for this potential industry.
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Focus on sustainable development, greening the textile industry

Focus on sustainable development, greening the textile industry

VCN - Vietnam’s textile and garment industry has made great strides in strengthening its supply chain, diversifying its markets, and developing sustainably. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, shared the industry’s strategy to adapt to the changing global context, as well as the export value target for 2024 that the industry is aiming for.

Latest News

Malaysia initiates anti-dumping investigation on galvanised sheets from Việt Nam

Malaysia initiates anti-dumping investigation on galvanised sheets from Việt Nam

Malaysia has announced it will initiate an anti-dumping duty investigation on the imports of galvanised iron coils/sheets or galvanised steel coils/sheets originating from or imported from Việt Nam, China and South Korea.
Coffee prices hit record highs, heightening speculation risks

Coffee prices hit record highs, heightening speculation risks

Phan Minh Thông, Chairman of Phúc Sinh JSC, called the price surge "insane," warning of continued increases as businesses are compelled to trade at elevated prices instead of following pre-set contracts.
Exports witness a rise of US$1 billion in the first 15 days of 2025

Exports witness a rise of US$1 billion in the first 15 days of 2025

VCN - Compared to the same period in 2024, exports in the first half of January 2025 increased by more than 6%, equivalent to nearly USS$1 billion.
Central industrial hub sets ambitious growth target in 2025

Central industrial hub sets ambitious growth target in 2025

The central province has targeted ambitious growth of up to 10 per cent with some key strategic industrial investment projects in 2025, contributing VNĐ25 trillion (US$1 billion) to the State budget.

More News

Demand for dragon fruit in Tiền Giang Province continues to increase

Demand for dragon fruit in Tiền Giang Province continues to increase

Dragon fruit prices in Tiền Giang Province remain high after the Lunar New Year due to increased demand from China and domestic consumption.
Data centres are attracting investors in Asia

Data centres are attracting investors in Asia

The global data centre market reached new heights in 2024, driven by the growing demand for generative AI, which has triggered a new wave of investment.
US or China: Who will lead in Vietnamese Tra fish imports?

US or China: Who will lead in Vietnamese Tra fish imports?

VCN - Given that tra fish is a key export commodity for Vietnam's seafood industry, the question arises whether the United States will surpass China as the leading importer of this product in 2025.
Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.
In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Pangasius fetch record price in early 2025

Pangasius fetch record price in early 2025

Currently, larger pangasius weighing over 1.2kg, are selling at VNĐ32,440 (US$1.29) per kilogram, a record high not seen since 2022.
Read More

Your care

Latest Most read
Malaysia initiates anti-dumping investigation on galvanised sheets from Việt Nam

Malaysia initiates anti-dumping investigation on galvanised sheets from Việt Nam

Malaysia has announced it will initiate an anti-dumping duty investigation on the imports of galvanised iron coils/sheets or galvanised steel coils/sheets originating from or imported from Việt Nam, China and South Korea.
Coffee prices hit record highs, heightening speculation risks

Coffee prices hit record highs, heightening speculation risks

Phan Minh Thông, Chairman of Phúc Sinh JSC, called the price surge "insane," warning of continued increases as businesses are compelled to trade at elevated prices instead of following pre-set contracts.
Exports witness a rise of US$1 billion in the first 15 days of 2025

Exports witness a rise of US$1 billion in the first 15 days of 2025

Compared to the same period in 2024, exports in the first half of January 2025 increased by more than 6%, equivalent to nearly USS$1 billion.
Central industrial hub sets ambitious growth target in 2025

Central industrial hub sets ambitious growth target in 2025

The central province has targeted ambitious growth of up to 10 per cent with some key strategic industrial investment projects in 2025, contributing VNĐ25 trillion (US$1 billion) to the State budget.
Demand for dragon fruit in Tiền Giang Province continues to increase

Demand for dragon fruit in Tiền Giang Province continues to increase

Dragon fruit prices in Tiền Giang Province remain high after the Lunar New Year due to increased demand from China and domestic consumption.
Mobile Version