Webinar discusses impact of COVID-19 on global supply chains

The event was hosted by the University of Social Sciences and Humanities (USSH) in collaboration with the Konrad-Adenauer-Stiftung Foundation (KAS) of Germany.

Associate Professor Dr. Tran Dinh Thien, former director of the Vietnam Institute of Economics, pointed out that the pandemic has dealt a heavy blow to business production, disrupting global supply chains and leading to high freight rates and a shortage of workforce for production.

In addition, social distancing measures and travel restrictions, along with COVID-19 testing fees, have disrupted production lines and shouldered additional financial burden on businesses.

Dr. Tran Toan Thang, an official from the National Centre for Socio-Economic Information and Forecast (NCIF), revealed that the pandemic has contributed to accelerating the shift of global supply chains, thereby diversifying and scaling up the global value chains (GVCs) in the future.

Concurring with this viewpoint, Prof. Dr. Heribert Dieter from the German Institute for International and Security Affair, noted that high transportation costs remain a major obstacle to the recovery of supply chains.

He pointed out that the costs of shipping containers from East Asia to Europe have witnessed a 10-fold increase, but said the shift of global supply chains will serve to create opportunities for several economies, such as Vietnam and India, in the near future.

Assoc. Dr. Nguyen Anh Tuan, from the Diplomatic Academy of Vietnam, underlined the necessity of paying close attention to socio-economic stability as the pandemic has not only caused a health crisis, but also exerted a negative impact on both people’s life and business production.

Dr. Tuan suggested that anti-pandemic measures should be accompanied by a unified logistics service strategy as the world moves into post-pandemic economic recovery.

During the event, speakers also made post-pandemic policy recommendations for the economy, the logistics sector and related industries.

Accordingly, experts suggested that the government change the mindset with regard to supply chains, devise plans and scenarios suitable to the pandemic situation and take measures aimed at supporting post-pandemic recovery.

Florian Feyerabend, resident representative of KAS in Vietnam, emphasised that Vietnam is Germany’s major trading partner in the ASEAN bloc and is also the top choice of investment destinations in the region.

He expressed his belief that the country will always be an attractive destination for foreign investors, including those from Germany, as they pursue the diversification of supply chains according to the “China + 1” strategy.

Several German media outlets have also recently published an article to express bright prospects for Vietnamese economic recovery, particularly as social distancing measures are lifted following the vaccination campaign being ramped up.