Many firms on verge of production suspension

29-Feb-2020 Intellasia | The SaigonTimes | 6:52 AM Print This Post

Many local enterprises may have to suspend their production in the next one to two months as they are nearly out of material reserves and are facing multiple difficulties in importing materials, stated Truong Thanh Hoai, head of the Ministry of Industry and Trade’s Industry Agency.

At a meeting on February 26 on enterprises’ production amid the Covid-19 outbreak in other countries, especially Vietnam’s major partners such as South Korea, China and Japan, Hoai said Vietnam is being affected significantly by the epidemic. Domestic firms are heavily dependent on suppliers in China and South Korea, Thanh Nien Online newspaper reported.

The electric and electronics sector is among those most seriously affected. Electronics firms can maintain production until the middle or end of next month.

In addition, the textile and garment and footwear sectors have enough materials for production until early next month or April.

As for the automobile manufacturing and assembly sector, Hoai cited a report by the Industry Agency as indicating that Vietnam had imported nearly $4 billion worth of automotive accessories last year, with the largest exporter being South Korea, followed by Japan and China.

Truck manufacturers use more than 70 percent of the accessories from China.

Hoai noted that vehicle assemblers may face a severe shortage of accessories next month.

Minister of Industry and Trade Tran Tuan Anh stated that many enterprises can only maintain their production until next month, as they are dependent on material imports. However, the issue cannot be resolved quickly.

He asked agencies under the ministry to work out response plans.

https://english.thesaigontimes.vn/75015/many-firms-on-verge-of-production-suspension.html

 


Category: Business, Vietnam

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