According to the Ministry of Industry and Trade’s Industry Department, Vietnam’s manufacturing and processing sector mostly relies on materials and spare parts imported from China, the Republic of Korea and Japan.
The hardest-hit sectors include electricity-electronics; apparel, leather, footwear and handbag; and automobile manufacturing and assembling.
By the end of this year’s first quarter, it is forecast that automakers and assemblers will run short of spare parts for manufacturing.
Participants suggested the government direct ministries, agencies and localities to work with Chinese counterparts to consider border restriction measures, thus ensuring sufficient input for domestic production.
They proposed offering incentives to facilitate the switch of manufacturing, especially spare parts, to Vietnam from China.
Deputy Minister Cao Quoc Hung highlighted the need to work with each association and sector to learn about impact of the epidemic so as to offer support to businesses in the most effective manner.
The Ministry of Planning and Investment predicted that the added value of the industry sector will hike only 5.18 percent if the epidemic ends in the first quarter, compared to 9 percent and 10.45 percent in the same period of 2019 and 2018, respectively.
If the epidemic is put under control in the second quarter, the figure will rise by 5.33 percent, lower than the 9.24 percent year-on-year and the 8.34 percent in the same period of 2018.
Source: VNA