AsemconnectVietnam - Amid Covid – 19 outbreak, the European Union (EU) has locked down its borders to stop the spread of the novel coronavirus (COVID-19) pandemic. However, the lockdown had not yet had a significant impact on goods circulation, according to an official from the Ministry of Industry and Trade.

The EU had formally agreed to temporarily close its external borders for 30 days to restrict non-essential travel in an effort to slow the spread of the COVID-19 pandemic.
Ta Hoang Linh, director of the ministry’s European – African Market Department, said that it was too early to say how the EU’s closure of its external borders would affect cross-border trade. He predicted that there would not be any significant impact on goods circulation as the European Commission stressed that goods would not be restricted across external borders.

According to Mr. Linh, the biggest impact of the COVID-19 pandemic was the declining demand as Europeans would stay at home and reduce shopping for products like footwear, clothes and wooden items which are Vietnam’s major export products to the bloc.
Mr. Linh stressed that the ministry is keeping a close watch on the development of the EU’s closure of its external borders and the impact on cross-border trade to raise detailed scenarios and measures to limit the negative impact on Vietnam’s exports. He also urged firms to brace for any possible impact on their import-export activities.

Exports to EU market in the first two months of 2020 and forecast
According to statistics of the General Department of Customs, Vietnam’s exports of goods to the EU market was estimated at US$5.15 billion in the first two months of this year, fell slightly by 4.56 per cent over the same period last year. Experts said that the decline was, however, just temporary and more time was needed to see the trend.
Vietnam is forecast to have significant opportunities to boost exports into the US$18 trillion EU market when the EU – Vietnam Free Trade Agreement (FTA) comes into force, expected in July.

According to a research by the Ministry of Planning and Investment pointed out that the trade deal would help increase Vietnam’s export revenue to the EU market by 20% in 2020 and 42.7% in 2025 compared with the scenario of no trade deal.
EU is a major export market of Vietnam with revenue increasing more than 14 times from US$2.8 billion in 2000 to more than US$41.5 billion last year.

Vietnam to speed up trade activities with China amid pandemic
According to Minister of Industry and Trade Tran Tuan Anh, Vietnam and China, especially Guangxi Province, need to promote cooperation in resuming trade activities during and after the novel coronavirus (COVID-19) pandemic,.
The two sides should resume supply chains and facilitate customs clearance for goods of the two countries, he said during a call at the weekend with Lu Xinshe, Communist Party Secretary of Guangxi Zhuang Autonomous Region, China. They spoke about strengthening coordination to overcome difficulties and minimize the negative impact of the COVID-19 pandemic on the two countries economic and trade activities, including between Viet Nam's localities with Guangxi.

Mr. Tran Tuan Anh proposed Guangxi to improve efficiency and speed of customs clearance for import and export goods between the two countries.
He also highly appreciated the important role of Guangxi in the export activities of Viet Nam's agricultural products to China and suggested Guangxi authorities propose the Chinese Government to create more favorable conditions for exporting Viet Nam's agricultural and aquatic products to China.
Of which, China should permit more border gates on land and railway to import Viet Nam’s fresh fruit products, he said. China needs to launch customs clearance for trade activities via the Bac Luan II Bridge, belonging to the Mong Cai-Dong Hung (Dongxing) international border gate.

In addition, China needs to allow more kinds of agricultural products and fruits to be imported at the border gate on the Bang Tuong railway, said Tuan Anh. China’s General Administration of Customs should also give export licences for more Vietnamese enterprises as well as Viet Nam's fruits such as durian, passion fruit, avocado, grapefruit, coconut, custard apple, water apple and other agricultural products such as bird's nest and sweet potato to China.
The minister proposed that Viet Nam and Guangxi authorities need to build an action plan now to promote trade activities after the pandemic ends. The plan would focus on activities to support businesses of the two sides in enhancing trade activities, including trade promotion programmes and exchange of market information.

New ways of trade cooperation suggested
In the context of the pandemic, the two sides should consider new ways of trade cooperation, such as the organisation of online trade promotion activities and development of e-commerce, he said.
Lu Xinshe said the Guangxi authorities have implemented comprehensive measures to control the disease, resume production and facilitate import and export activities, especially border trade with Viet Nam.
He agreed with all proposals of Viet Nam and said that the two sides should soon expand trade activities at the Long Bang-Tra Linh, Ta Lung-Thuy Khau and Hoanh Mo-Dong Trung border gates.

Viet Nam needs to give priority to resuming air and marine traffic between Viet Nam and Guangxi, he said. Meanwhile, Guangxi will coordinate with relevant Governmental agencies to increase goods and businesses of Viet Nam allowed to export to China.
The action plan proposed by the minister Tuan Anh was an important step for the period after the pandemic and during the implementation of the memorandum of understanding on strengthening economic and trade cooperation between Viet Nam and the Guangxi Zhuang Autonomous Region.

Border trade situation
According to the Ministry of Industry and Trade, on March 13, the customs office at the Huu Nghi International Border Gate, Lang Son Province, completed customs clearance for 171 trucks of export goods, including agricultural products, fruits, electronic components and machinery; and 321 trucks of import goods, including electronic components, machinery, garments, agricultural products, paper and auto parts.
There were still 171 trucks of agricultural goods and electronic components for export waiting for customs clearance.

The same day, at the Tan Thanh Border Gate, the customs office finished customs clearance for 151 export trucks, mainly agricultural products including watermelon, dragon fruit, jackfruit, banana, rambutan, bamboo leaves and tapioca, and 31 import vehicles of green beans, onion peanuts, mushrooms and garlic. Meanwhile, 514 trucks of agricultural products and fruit for export were waiting for customs clearance.
In Lao Cai Province, 318 trucks transporting export goods, mainly farming products such as dragon fruits, watermelons and bananas, and 235 trucks of import goods, including vegetables, fruits, fertiliser and others, completed customs clearance at the Kim Thanh II Border Gate. Remarkably, there were no trucks waiting for customs clearance at this border gate.
CK
Source: VITIC/VNS/VOV