Local businesses seek raw material sources from other countries instead of China amid coronavirus epidemic
Many manufacturers and traders in Da Nang, who have set up partnership links with Chinese businesses, have been significantly affected by the current outbreak of 2019-nCoV acute respiratory disease in this country.
Workers at the 29 March Textile and Garment Joint Stock Company |
According to Ms Vo Thi Ha Phuong, Head of Import-Export Management Office of the municipal Department of Industry and Trade, there are a few exporters to China from Da Nang. However, many businesses in the city are sourcing their raw materials from China.
She added many businesses still have enough raw materials in order to prepare for their orders over the next 2 to 3 months. However, if the outbreak still persists in China, they will find raw material sources from other countries. It’s a fact that it will take them much time and cost to find other foreign sources because their Chinese suppliers have been their longtime partners.
The textiles and garments industry is likely to be much affected by the nCoV epidemic.
Mr Nguyen Huu Vinh, the Import-Export Manager of the 29 March Textile and Garment Joint Stock Company, said although his company’s traditional importing markets for its input materials are European countries, the proportion of the company’s imports from China accounts for between 40 and 50%.
“This week, our company’s Chinese suppliers have their operation halted. Therefore, in the coming weeks, our company will continue to prepare for orders from stockpiled raw materials. We plans to source raw materials from domestic localities, and such Southeast Asian member nations as Thailand, Singapore, and Malaysia” Mr Vinh remarked.
Workers at the Lovepop Viet Nam company |
Director of the Thanh Khe District-based Adoor Viet Nam company Mai Van Khoa underscored that China was one of his company’s important suppliers as the majority of the company’s raw materials were imported from the country.
He affirmed that his company now has enough imported raw materials for its production activities in the 1st quarter of this year. At present, Adoor is planning to use domestic raw materials to avoid over-reliance on China.
Director of the city branch of the Viet Nam Chamber of Commerce and Industry (VCCI) Nguyen Tien Quang affirmed that VCCI Da Nang would do its utmost to find the best ways to help local businesses overcome their current difficulties relating to China-imported raw materials amid the coronavirus epidemic.
By KHANG NINH, MAI QUE - Translated by MAI DUNG