The Chinese market remains volatile, both for exports and imports.

China is Vietnam's largest import and export market. The fact that this market continues to pursue a "Zero Covid" policy has caused Vietnamese businesses to face difficulties in both import and export.

Difficult in both the export and import directions.

According to the Vietnam Association of Seafood Processing and Export (VASEP), in the first two months of 2022, seafood exports to China and Hong Kong nearly doubled compared to the same period last year, reaching US$170 million. Prior to that, in 2021, Vietnam's seafood exports to China hit a five-year low due to China's "Zero Covid" policy.

The outlook for seafood exports to the Chinese market is expected to be positive in 2022.

Despite the promising export situation, according to Mr. Truong Dinh Hoe, General Secretary of VASEP , China is currently Vietnam's largest seafood export market, primarily for pangasius and shrimp. Seafood exports to this market are also facing difficulties due to lockdowns implemented in many cities because of the Covid-19 pandemic.

Many Vietnamese seafood export businesses report that only 50% of their export orders to the Chinese market have been fulfilled. "China is increasingly importing seafood, making it a potential market for Vietnamese seafood. Given these developments, businesses are simply waiting for China to change its COVID-19 prevention and control policies," shared Mr. Truong Dinh Hoe.

According to estimates, fruit and vegetable exports in March 2022 reached US$340 million, a decrease of 15.4% compared to March 2021. Overall, in the first three months of 2022, Vietnam's fruit and vegetable exports are estimated at US$849 million, a decrease of 12% compared to the same period in 2021. China is an important market for Vietnam's fruit and vegetable exports. The sharp decline in export prices to China is the main factor contributing to the overall decrease in the export value of this sector. Notably, dragon fruit exports to the Chinese market in the first two months of 2022 only reached US$124.1 million, a decrease of 38.3% compared to the same period in 2021.

While the agricultural sector faces difficulties at the export end, industrial sectors have to contend with challenges at both the export and import ends. Ms. Phan Thi Thanh Xuan, Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association, shared this view. Currently, China is still pursuing a "Zezo Covid" policy, which is seriously affecting the production of the footwear industry, especially the import of raw materials and components. These imports not only serve domestic production but also involve processing for export to international markets.

According to Ms. Phan Thi Thanh Xuan, not only the import side but also the export side is being significantly affected, as this is the fifth most important market for the footwear industry. “ Rising raw material prices and supply shortages are the two most important issues affecting the footwear industry. Due to the lack of raw materials, meeting delivery deadlines for partners is also being impacted,” Ms. Phan Thi Thanh Xuan stated.

According to the Ministry of Industry and Trade , China is a crucial market for both Vietnam's exports and imports. Statistics from 2021 show that Vietnam's exports to China reached US$56 billion, making it Vietnam's second largest export market after the United States. Regarding imports, it is Vietnam's largest import market, with a trade value of US$109.9 billion in 2021.

Unlike the general trend in other countries, despite having implemented widespread vaccination, China continues to implement anti-epidemic measures according to the "Zero Covid" policy. One of the measures taken by the Chinese side is to proactively strengthen management measures such as stricter delivery procedures and more complex quarantine processes at border crossings.

China is a major source of raw materials for Vietnam's manufacturing, especially for electronic components, machinery parts, textiles, and chemicals. Delays in goods delivery have significantly impacted import and export activities, disrupting production for businesses.

On the export side, Vietnam's main export items to China include: computers, electronic products and components, various types of telephones and components, textile fibers, etc. China's pursuit of a "Zero Covid" strategy means that cultural and social activities are restricted, leading to a decrease in demand for goods, which affects the demand for imported goods from Vietnam, especially consumer goods.

Furthermore, delivery disruptions will significantly impact agricultural products, as their relatively short shelf life, extended waiting times, increased risks, and even the possibility of discarding unsaleable goods are major concerns.

Supporting and partnering with businesses.

To support the business community, the Ministry of Industry and Trade stated that in the coming period, it will continue to strengthen information dissemination and support for associations and businesses to update on policy changes related to import and export activities, and establish a central point of contact to resolve difficulties and obstacles in import and export activities for Vietnamese businesses.

In addition, it is necessary to promote the exploitation of signed free trade agreements (FTAs). Continue to review and assess domestic demand for strategic commodities such as fertilizers, petroleum products, coal, etc., in order to implement appropriate measures to manage export and import activities, taking advantage of price opportunities for exports while ensuring sufficient supply for domestic consumption and production, especially in cases where raw material prices rise too sharply.

Administrative reform remains a key focus. Accordingly, the Ministry will continue to coordinate with relevant ministries and agencies to further propose reductions in fees applied to import and export activities at border gates and seaports to support businesses in goods transportation.

Businesses say that, for the time being, they are still struggling to maintain production, retain customers, and ensure timely delivery. Some businesses are also focusing on investing in the development of raw materials and components for production, increasing their self-sufficiency to reduce dependence on imported materials.

Despite numerous challenges, positive signs remain. The Import-Export Department (Ministry of Industry and Trade) reported that in March 2022 and the first quarter of 2022, seafood exports to China increased sharply, even though China continued to pursue its "Zero Covid" goal, tightening food import procedures and imposing lockdowns in many provinces and cities. This indicates a promising outlook for seafood exports to China in 2022.

However, businesses need to pay attention to food safety issues and the presence of the SARS-CoV-2 virus on packaging and goods. "Chinese authorities have suspended imports from Vietnamese businesses whose shipments were found to violate food safety regulations, and have also temporarily suspended import procedures for businesses whose shipments were found to contain SARS-CoV-2," the Import-Export Department advised.

In this context, many experts recommend that Vietnamese businesses diversify both their raw material import markets and export markets to avoid dependence. Furthermore, more policies are needed to develop supporting industries in the domestic market to gradually achieve self-sufficiency in raw materials. This is a core issue for the sustainable development of Vietnam's industry.

According to experts, with the "Zezo Covid" policy, industries that import a lot of raw materials from China, such as electronics manufacturing, machinery assembly, and textiles, will face certain difficulties. On the export side, consumer goods will be affected due to limited consumer demand. Agricultural exports face high risks.

Source: https://congthuong.vn/thi-truong-trung-quoc-van-bap-benh-ca-dau-xuat-va-nhap-175390.html