Thousands of container trucks stranded at northern border gates, lessons drawn
VOV.VN - 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.
The Ministry of Industry and Trade reported that more than 4,000 of container trucks mostly carrying fruits and electronics products have got stuck at northern border gates such as Kim Thanh (Lao Cai), Tan Thanh (Lang Son), and Mong Cai (Quang Ninh) after China introduced tougher COVID-19 safety measures. The move is anticipated to cost businesses trillions of VND in economic loss unless the trucks get through.
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.
Assoc. Prof. Dr. Ngo Tri Long, former director of the Finance Ministry's Market and Pricing Institute, underlined the necessity of resolving the problem through dialogues, with the participation of both Vietnamese and Chinese authorities so as to devise long-term solutions for sustainable export activities.
Dr. Long also said businesses have no choice but to expand export markets, join the global value chain and strengthen connectivity to economies other than China.
Experts duly pointed out that the local administrations must draw up plans for materials growing areas, conduct surveys, and provide orientations for farmers and businesses in which to produce products in line with the market demand.
According to 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.
These experts also highlighted the role of relevant ministries and localities in making early predictions and regulating the quantity of goods at border gates, a factor which will help resolve bottlenecks in the future.
Moreover, state agencies have yet to strictly monitor production and help businesses actively connect to various markets, Doanh stressed.
At a recent online meeting held to provide a platform in which to discuss solutions for severe congestion of goods occurring at northern border gates, Deputy Prime Minister Le Van Thanh proposed that the Ministry of Foreign Affairs and relevant ministries work with the Chinese side to facilitate customs procedures and help clear backlog of thousands of container trucks there.
Most notably, he requested that businesses and craft associations seek ways to expand markets and promote domestic consumption in order to fully tap into the potential of the local market with roughly 100 million consumers.
