To prepare supply sources of raw materials to stabilize and develop production

The acute respiratory infection caused by the novel Coronavirus (nCoV) is affecting many industries such as textile, footwear, wood processing etc. of the province, due to the dependence on imported materials from China. Industry and trade authorities are closely monitoring developments, along with industry associations, enterprises to solve difficulties.

A production line of An Khang Wood Company (Tan Uyen Town).

Inevitable difficulties

According to Binh Duong Textile and Apparel Association, the nCoV epidemic has a great impact on the operations of its member businesses due to the reliance on raw materials from China. In the coming time, textile enterprises will still face many difficulties, because raw materials imported from the epidemic zones are kept in quarantine for 14 days. Businesses also worry that if they stop production, they still have to pay workers according to the current Labor Law... Along with the zoning and disease control to avoid spreading, if the epidemic is prolonged, the State should consider support packages for businesses and workers.

Nguyen Quang Vu, Chairman of Binh Duong Leather and Footwear Association, said that in the general context of the nCoV epidemic, the footwear industry is also affected. The survey shows that currently, the material in stock of their member enterprises only meets production for a short period. Currently, materials imported from China account for 20% raw materials of the leather and footwear industry. “Enterprises are looking for alternatives but this will only partially meet the demand. Particularly, leather and PU materials, Chinese raw materials are clearly the biggest advantage. The solutions are just temporarily adaptive to the current epidemic situation. In addition, some experts in the footwear industry cannot return to Vietnam, which is a problem for enterprises in the industry”, Mr. Vu said.

Meanwhile, Dien Quang Hiep, Chairman of Binh Duong Furniture Association, said that timber enterprises were also affected by this epidemic. At this time, the amount of inventory in wood manufacturing enterprises is almost used up, especially supporting materials. Finding alternative sources is not easy, so the industry expects the Government to have policies, offer business support packages.

To support businesses

According to Import-Export Department (Ministry of Industry and Trade), the nCoV epidemic has a profound impact on many domestic manufacturing and export industries such as textiles, footwear, electronic components... due to the dependence on imported raw materials from China. These impacts may come from that fact that Chinese enterprises are in bare-minimum operating conditions or difficulties in customs clearance at border areas. Besides, the impact from export markets also needs to be considered, firstly markets like: China, the US and the European Union.

Tran Thanh Hai, Deputy Director of Import-Export Department, said that although Huu Nghi Border Gate reopened on February 3, due to strict quarantine, the goods clearance has been partially limited. Besides, drivers are also afraid of 14 days quarantine after transporting goods through the border. Ministry of Industry and Trade discussed with Ministry of Health to implement measures to prevent and combat the spread of nCoV, and on the other hand, measures should be implemented to the necessary extent, without causing difficulties to import and export.

Nguyen Thanh Ha, Deputy Director of Department of Industry and Trade, said that following the Prime Minister's direction to ensure both epidemic prevention and economic growth, Ministry of Industry and Trade is continuing implementing measures to support connection, product sales for businesses, while reducing difficulties for trade, import and export activities to maintain production growth. Department of Industry and Trade grasped the difficult situation of enterprises and industries.

However, this is the common situation of the whole country. The Industry and Trade sector encourages businesses to find alternative sources of supply, overcome difficulties and challenges. In case of urgent proposals to provincial leadership and Ministry of Industry and Trade, the department will assist businesses.

Reported by Tieu My - Translated by Ngoc Huynh