Long-term prospects outlast supply chain concerns. Illustration photo - freepik.com The latest survey by the German Chamber of Industry and Commerce (AHK) found that 60 per cent of German companies in Vietnam were complaining about price increases or supply chain bottlenecks for raw materials, intermediate products, and other goods. The main reasons for raw material shortages as claimed are increased demand, low production capacity, and transport problems that continue through the COVID-19 pandemic worldwide. The bottlenecks in the supply chain are causing numerous difficulties in terms of production activities for the surveyed companies such as higher input prices, longer waiting times, and even production interruption and operation halts. The survey covered 3,000 German companies in various countries across all sectors. It pointed out that 90 per cent of German companies in Vietnam said seeking new or additional suppliers in Asia-Pacific and raising inventory levels are … [Read more...] about Long-term prospects outlast supply chain concerns
Disruptions supply chain
Vietnam is a key supplier of the world’s coffee, so disruption here ripples into all walks of global life The UK media finally picked up on the troubles surrounding COVID-19 in Southeast Asia at the start of September, but not to cover tightened restrictions and snowballing case numbers - rather, it was concern for how it would damage the British population’s ability to enjoy a coffee before commuting to work each day. The tough anti-pandemic measures induced in Ho Chi Minh City, its surrounding areas, and also in the Central Highlands region have disrupted supply chains after Vietnam, the world’s second-biggest exporter of coffee, continued to battle increasing infections since the latest and biggest wave emerged in June. Vietnam is the leading exporter of Robusta coffee, used for instant coffee as well as for some espresso blends. The sharp rise in coronavirus cases and a shortage of vaccines have caused the government to impose travel curbs in producing areas. British … [Read more...] about Coffee chaos highlights supply risks
At the 24th ASEAN Investment Area Council Meeting under the ASEAN Economic Ministers’ Meeting last week, an investment facilitation framework (AIFF) was announced based on initiatives and implementation of regional members in mobilising foreign direct investment (FDI) as a key priority for the post-pandemic period. The AIFF points out some practical recommendations for ASEAN country members. In the opinion of Secretary General of ASEAN Lim Jock Hoi, improving investment facilitation processes and procedures is the most important target, which includes improving transparency and predictability of investment measures, streaming and speeding up administrative procedures and requirements, and strengthening coordination and cooperation, especially on cross-border issues. “The movement of people and capital should be focused on enhancing talent mobility within the region and from outside the region, as well as providing necessary regulations/ framework for movement of people and … [Read more...] about System crafted for ASEAN attraction
Fishermen bring tuna to storage in Tiên Châu port, Tuy An District of Phú Yên Province. This year, Việt Nam became the largest tuna supplier of Israel. -— VNA/VNS Photo Phạm Cường HÀ NỘI — The export value of Vietnamese tuna exports to the Israeli market by mid-August jumped by 34 per cent to nearly US$25 million compared to the same period last year, or accounted for 5.6 per cent of the total tuna export value, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Israel continues to represent the nation’s third-largest single tuna export market, behind only the US and Italy. According to VASEP, tuna export turnover was estimated at over $410 million in seven months of this year, up 21 per cent annually. Việt Nam’s major importers include the US, Europe, Israel, Canada and Japan. The US was the largest importer with a value of over US$170 million. Despite experiencing a decline in 2019, since the end of 2020, tuna exports to the market have … [Read more...] about Việt Nam becomes largest tuna exporter of Israel
Work is carried out in Thanh Thanh Cong Group's sugar plant in Thanh Long Farm in Chau Thanh District, southern Tay Ninh Province. With a planned finance backup, the group stay strong even when it had no revenue for the past three months as of COVID-19. — Photo courtesy of the As the Delta variant of COVID-19 spreads, significantly disrupting production, firms are either experiencing or anticipating constraints on cash and working capital. In this regard, enterprises have to strictly manage cash flow and make use of all financial resources. Mohammad Mudasser, Deals Director of PwC Vietnam, said cash flow scrutiny was crucial for businesses which were seeing their revenue decrease. In addition, PwC Vietnam said delayed receivables collection and earlier payment settlements have resulted in tightened cash flow for many businesses. Therefore, managing cash pressures in uncertain times is vital. Mudasser said: “We are living in extraordinary times where business as usual is … [Read more...] about Enterprises strictly manage cash flow and make use of all financial resources
Receipts from taxes are on the decrease, which show that goods consumption and production of enterprises have been hit hard by the Covid-19 crisis. EuroCham’s newly released report on business index during social distancing periods showed that 18 percent of businesses in the manufacturing industry have transferred a part of their orders or production demand to other countries, while 16 percent are considering doing this. EuroCham’s Chair Alain Cany said this was just a temporary decision. However, if social distancing lasts two or three more months, the situation will become more serious. Meanwhile, a survey by the Association of German Chambers of Industry and Commerce (DIHK) of German investors in Vietnam found that 60 percent of businesses confirmed the disruption of supply chains, which has caused serious consequences. Up to 83 percent of businesses said they have suffered from production disruption because goods transport, circulation and consumption have been … [Read more...] about How long will social distancing last?