AsemconnectVietnam - Vietnam’s agro-forestry-fishery exports to US, EU are being hit by COVID-19. The country’s main agro-forestry-fishery export markets such as China, the US and Europe are being hit by the new coronavirus-caused acute respiratory disease (COVID-19), so Vietnamese exporters are suffering.

Exports of several agricultural products fell
Nguyen Dinh Tung, Chairman and CEO of Vina T&T Group, which exports fresh fruits to several demanding markets, said fruit exports by air to the US and EU were down 70-80 percent since many airlines had stopped flights.
"Shipments by sea are relatively stable but customs clearance in importing countries is expected to be prolonged because workers and officials are absent from work due to the pandemic, which could affect the goods quality.
“Therefore, at least in the next one month, vegetable and fruit exports to these markets will drop sharply."

After that the export situation would depend entirely on how the countries control the pandemic, he said.
His company now exports only three items, coconut, longan and durian, because they last long, and temporary stops exporting other fruits.
Dang Phuc Nguyen, General Secretary of the Vietnam Fruits and Vegetable Association, said most fruits and vegetables were exported in fresh form and by air.
The sector must improve storage and packaging technologies to enable the products to last over 30 days so that they could be shipped to Europe and the US by sea, he added.
Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said the main seafood export markets such as China, the US, the EU, Japan, and the Republic of Korea had all been hit by COVID-19.

Exports of seafood in the first two months of 2020
In the first two months of the year seafood exports were worth nearly 935 million USD, down 15.9 percent from the same period in 2019, with exports to China down by 46.8 percent to 80 million USD, and to the EU by 17.4 percent to 106 million USD and to the Republic of Korea by 16 percent to 90 million USD.
According to VASEP, shrimp exporters expect the China market to recover in April and will focus on shipping by sea.
Pangasius exports to China are expected to recover by 70 percent in May and fully recover in June.
Exporters will restrict exports to China through intermediaries and outsourcing to avoid oversupply.
In the case of non-essential items such as wood and wood products, demand could slump at a time like this. According to the Vietnam Timber and Forest Products Association (VIFOREST), exports of timber and timber products will plummet in the next three months, especially to the country’s five key export markets that are severely affected by the pandemic.

The five are the US, EU, China, Japan and the Republic of Korea, which buy nearly 90 percent of the country’s total exports.
Importers in these markets have informed suppliers in Vietnam they would delay or stop buying or defer payment.
According to insiders, agricultural exports in the first two months of the year were estimated at 5.34 billion USD, down 2.8 percent year-on-year.
If the Government and related ministries did not provide timely support, the sector’s export prospects were very gloomy, they said.

Seafood orders slump due to negative impact of COVID-19
The amount of orders received by seafood firms has been reduced by between 20% and 50%, with falling orders being especially prevalent at the start of March, as a result of the negative impact caused by the COVID-19, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
A specific example which signifies this drop comes from Tra fish (Pangasius) firms whose exports to the highly lucrative Chinese market were either interrupted or halted during January 2020 as a result of the COVID-19.

Moreover, since March the COVID-19 epidemic has become more widespread globally, particularly in Europe, forcing a number of European nations to suspend all transactions and impose policies aimed at closing restaurants and hotels as a means of avoiding risks of an outbreak. This has led to huge quantities of inventories and new orders yet to be re-signed.
As a result of the global spread of the COVID-19, mid-March saw many orders to the Middle East, Asia, and South America also being cancelled without any date regarding their return.
Consequently, the production activities of the majority of seafood enterprises have been adversely affected due to a lack of raw materials, except for Pangasius enterprises. Most notably, orders for food service have been disrupted while only those in the retail segment have been maintained.

Meanwhile, between 20% and 50% of orders for shrimp exports to both the United States and the EU have been delayed for delivery or canceled due to both exporters and importers already having large inventories. Indeed, despite suppliers reducing their prices by up to 30%, this move has failed to stimulate demand.
With the majority of businesses noting that January is the start of a sluggish period for seafood trade, the epidemic becoming more widespread in March will likely lead to more severe consequences.
As a way of dealing with the current situation, the VASEP has called on its members to press ahead with strictly implementing anti-epidemic regulations in line with the recommendations issued by the Ministry of Health.
This should be done whilst simultaneously maintaining stable production and joining forces with the government to overcome this difficult period.
CK
Source: VITIC/Vietnamplus.vn/VOV.VN/VNS