Why are the consequences of the outbreak in Vietnam and other Southeast Asian countries worse than the Suez Canal incident?
11
Jun
The Covid-19 outbreak in Southeast Asia has halted the production of a series of factories, forcing them to reduce capacity. Especially when the provinces of Bac Giang, Hai Duong and Bac Ninh of Vietnam also have many industrial parks with foreign-invested enterprises.
The recent Covid-19 outbreak caused container shipping to the Yantian International Port in Shenzhen to be delayed for 5 days at the end of May. Yantian is the largest container port in the Pearl River Delta, and is one of the largest ports in the world. This port has many natural deep-water berths that can accommodate the largest container ships such as Ever Given.
The new wave of disease has made container ship receiving stations only able to operate at about 30% of capacity. The worst congestion last year at the port was when trucks stretched for 20km. But recent traffic reports suggest that the situation could be even worse this time around. At one point, up to 40 container ships were waiting to dock, similar to the setbacks this year at the ports of Los Angeles and Long Beach.
At the same time, the outbreak of Covid-19 in Southeast Asia has halted the production of a series of factories, forcing them to reduce capacity. In Vietnam, the disease outbreak in factories has caused many challenges for the economy in the next period. Especially when the provinces of Bac Giang, Hai Duong and Bac Ninh have many industrial parks with foreign-invested enterprises.
To prevent the wave of disease spreading in industrial zones, the basic solution that the Government and the health sector are aiming for is to give priority to the earliest vaccination for workers in industrial zones. Industrial parks have gradually partially reopened, as well as enhanced safety measures.
In Taiwan (China), the Covid-19 outbreak in King Yuan Electronics Company (KYEC) is a major concern for the semiconductor supply chain. KYEC is the world’s largest chip-checking service provider, and last week it was forced to suspend operations.
In the current uncertain context, it can be affirmed that the difficulties in the global supply chain have not ended, or more broadly, the Covid-19 pandemic has not ended. “Until everyone in the world is vaccinated and outbreaks are strictly controlled, then the supply chain will avoid the effects of unexpected disruptions,” said Willy C. Shih, an American economist and professor at Harvard University, concludes.
Resources : cafef.vn
