How does the Vietnamese logistics business affect the COVID-19 epidemic?

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(VLR) In order to assess the impact of COVID-19 on the activities of logistics enterprises, Vietnam Logistics Service Enterprises Association (VLA) has conducted a survey and consulted with businesses about the difficulties and damages that businesses are facing. Accordingly, most of the businesses surveyed are affected quite heavily, the average revenue decreased from 10% - 30% compared to the same period in 2019.

COVID-19, Enterprises are hard to avoid losses

The COVID-19 epidemic has had an impact on all aspects of health, transportation, tourism, education, trade ... For trade, Vietnam is not only affected by trade relations. trade directly with China but also in third markets, from exports, imports, border trade to domestic trade, industrial production, supply chain management.

According to the VLA report, about 15% of businesses have a 50% reduction in revenue compared to 2019 and more than 50% of businesses reduce the number of domestic and international logistics services from 10% - 30% over the same period last year.

According to VLA's assessment, because many factories have to suspend operations, the number of goods needed to circulate is less, leading to the reduction and transport of goods in the supply chain, greatly affecting the operation of businesses. Logistics transport business. In addition, businesses also have a significant reduction in revenue for exports and imports from epidemic countries such as China, Korea, Japan, Singapore, ...

In addition, in the current epidemic situation, enterprises are short of raw materials for production and it is difficult to find outlets for products in Asia and some other areas, causing overproduction. exportable.

Logistics activities such as transportation decreased due to the obstructed customs clearance, warehousing, and freight services. The Chinese border gate has always been overloaded, now due to the epidemic effect, traffic arises, the import and export at the border become more complicated and time-consuming. Since then, leading to perishable goods with reduced quality, drivers do not want to be in trouble and delay, so often refuse to transport, affecting delivery progress. Some other problems such as some Chinese customers have financial difficulties, leading to the inability to pay debts to shippers and Vietnamese suppliers, leading to the late payment of goods to logistics enterprises.

Logistics enterprises have difficulties from shipping lines and airlines

Carriers

The main routes are from China, South Korea, Japan, shipping lines such as ONE, HMM and some other shipping lines all reduce the connection of all routes, affecting the delivery schedule and service quality. Most imports on routes to Vietnam plummeted, some other markets were strictly quarantined. Operating procedures from Asian markets and some other regions are slower than usual.

Reduced trips due to reduced overall turnover, transportation becomes erratic when the schedule is frequently changed without notice and affects customers' business plans, causing loss of credibility to the service provider. business, increase the time to handle the arising problems and stress human resources when dealing with the above issues.

Airlines

According to the VLA survey, airlines now cancel flights to China, South Korea, Hong Kong, CZ-DLC cuts routes, SNG-HKG, minimizing flights from the epidemic area. In addition, freight rates rise higher than normal.

Trucking

Currently, border routes are difficult to find shipping providers. Reduced cargo volume leads to a 30% reduction in road transport demand.

VLA proposes and supports logistics businesses

To solve the immediate problems

Facing such complicated developments, VLA has synthesized and made a number of recommendations and proposals to support logistics businesses, as well as maintain socio-economic development. Specifically, such as extension, postponement, proposal of exemption or reduction for a period of time the taxes and fees payable by businesses in the affected industries (business income, added value, unemployment insurance fees).

In addition, VLA also proposed that the Government provide timely and accurate information to businesses about the Government's disease situation and economic scenario; Provide anti-epidemic masks for businesses if the disease situation is more complicated. In addition, the Government should work with shipping companies and shipping lines to reduce the price of freight services, reduce port service fees to reduce goods circulation costs, and contribute to supporting manufacturing enterprises and businesses. Logistics. Controlling prices, not raising prices too high, especially LSS, LSS fees increase quarterly, but now shipping lines are increasing by the month.

Relevant agencies implement epidemic prevention at border gates and seaports in the direction of creating favorable conditions for enterprises. Coordinate with the Northern border provinces to arrange functional forces for channeling and routing inroads in order to create the best conditions for the circulation of goods and vehicles.

In order to support businesses, VLA also proposed a 50% reduction of corporate income tax for 2020, this reduced tax is considered as a part to support businesses to overcome business difficulties in 2020. Delay and reduce contributions Social Insurance Fund, Unemployment Insurance, Health Insurance from the affected businesses.

The State Bank should consider reducing the basic interest rate. Commercial banks need to freeze, reschedule, reduce lending rates, expand loan limits, restructure loans for businesses in the fields hit hard by COVID-19 like calendar, services, the export of agricultural products, transportation, textiles, footwear ...

For cold-storage and cool-storage businesses, they need to be preferential in the price of electricity used (currently the price is 25% -30% higher than the price of electricity produced). Tax incentives (such as tax reductions, no late payment penalties ...) for restaurants, hotels, food supply chains. Extend the progress of payment, reduce land rent and business premises for businesses affected by the epidemic.

In case of prolonged disease

If the disease situation continues, the Government may consider promoting public investment for the whole economy, and in particular, investing in infrastructure and equipment for the Customs sector, minimizing the manipulation. handmade. Capacity building for airports, seaports and transshipment yards at border gates.

Unifying the list of goods and HS codes to suit other countries, especially the EU. This helps businesses avoid embarrassing when applying tax codes and state management agencies to control the uniform declaration.

There is a mechanism, creating more open conditions for import and export procedures in accordance with the actual conditions for each short-term and long-term period, shortening the time for goods clearance. Support factories to accelerate the circulation of goods to save costs for businesses and society.

Increase the schedule and time for specialized licensing, reduce the time for clearance and inspection at the port to free goods to avoid storage charges.

The Government reviewed taxes and fees and supported measures to reduce transportation costs such as reducing BOT, tolls, parking, storage fees, taxes on flying fuel ...

Create favorable conditions for businesses to issue CO so that businesses are eligible for tax incentives when exported to EU and India markets under the EVFTA agreement. Review and approve for C / O debt after 30 days because of the disease situation in China.

The Government supports businesses through trade promotion. Enhancing e-commerce, online trading floors, online payment.

Transporting goods by road and rail, Vietnam now connects with China very large, so it is proposed that the Government directs and focuses on strengthening domestic exploitation while expanding connectivity with other countries. in ASEAN to Thailand to help road transport can compensate for the shortage from restricting goods transportation to China during the epidemic.

Original link of the article: vlr.vn/trong-nuoc/doanh-nghiep-logistics-viet-anh-huong-the-nao-tu-dich-covid-19-5842.vlr

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