Vietnam envisages diversifying its export market as China has tightened COVID-19 prevention measures unilaterally making Hanoi suffer economically.
China's unilateral move is expected to cost businesses trillions of Vietnam Dong in economic loss unless the trucks get through the borders has made Vietnam diversify its export market, according to Voice of Vietnam.
Associate Professor, Dr. Ngo Tri Long, former director of Vietnam's Finance Ministry's Market and Pricing Institute said that Vietnam's businesses have no choice but to expand export markets, join the global value chain and strengthen connectivity to economies other than China.
With thousands of container trucks left stranded at northern border gates due to China's tightened COVID-19 prevention measures, experts have suggested that businesses diversify export markets instead of relying on a single market, among other solutions.
Further, Vietnam's Ministry of Industry and Trade reported that more than 4,000 container trucks, mostly carrying fruits and electronics products, have got stuck at northern border gates and after China introduced tougher COVID-19 safety measures.
Experts attributed the situation to the fact that local businesses have not been proactive in updating the latest information on new regulations from the northern neighbour.
Further, according to Vietnam's economic expert Le Dang Doanh, local agricultural exports to China are still heavily dependent on non-official channels, for domestic firms have yet to sign long-term contracts and enhance linkages in the value chain with Chinese importers.
Moreover, state agencies have yet to strictly monitor production and help businesses actively connect to various markets in an effort to make Vietnam diversify its market apart from China, according to Voice of Vietnam
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor