THE LOGISTICS INDUSTRY UNDER THE PRESSURE OF THE COVID-19 EPIDEMIC

The Covid-19 epidemic had a strong impact on the global supply chain, causing the logistics industry to be severely affected. In Vietnam, the revenue of enterprises in this industry decreased by 10% – 30% on average compared to the same period in 2019.

Most businesses working in the logistics sector said that because many factories had to suspend operations, the amount of goods that needed to be moved was less, leading to a decrease in the transportation and delivery of goods in the supply chain, affecting the supply chain. to the activities of companies dealing in warehousing services, bonded warehouses, transportation, and customs services. In addition, many businesses also have a significant reduction in revenue from services for goods exported and imported from countries with epidemics such as China, Korea, Japan, and Singapore.

The Vietnam Logistics Business Association (VLA) said that a recent survey on the difficulties and damages that businesses are experiencing due to the impact of the Covid-19 epidemic showed that the average revenue decreased by 10% – 30 % compared to the same period in 2019. Of which, about 15% of enterprises had a 50% reduction in revenue compared to 2019 and more than 50% of enterprises reduced the number of domestic and international logistics services by 10% – 30% compared to the same period last year. same period last year.

Logistics activities such as transportation decreased due to hindered customs clearance services, warehousing services, and freight were also severely affected. Some other problems arise such as some Chinese customers having financial difficulties leading to the inability to repay their debts to shippers, Vietnamese suppliers leading to slow payment by goods owners to logistics enterprises.

For shipping, the routes are mainly from China, Korea, Japan, shipping lines such as ONE, HMM and some other shipping lines have reduced ships connecting all routes, affecting the shipment schedule. and service quality. Most of the goods imported on routes to Vietnam dropped sharply, some other markets were subject to strict quarantine. Operating procedures from the Asian market and some other regions are slower than usual.

For airlines, according to a survey by VLA, airlines are currently canceling routes to China, Korea, Hong Kong, CZ-DLC cutting routes, SNG-HKG, minimizing flights. flying from the epidemic area. In addition, freight rates are higher than usual. Meanwhile, the border routes are difficult to find shipping suppliers. The decrease in cargo volume leads to a decrease in the demand for road transport by about 30%.

Facing the current complicated developments, in order to support enterprises in the logistics industry, VLA proposes to the Government to reduce 50% of corporate income tax for 2020. This reduction is considered as a part to support enterprises to overcome economic difficulties. 2020. Deferred and reduced contributions to the Social Insurance Fund, Unemployment Insurance, and Health Insurance from affected businesses.

For cold storage enterprises, import and export goods need to be preferentially priced because currently the price of this service area is still 25% – 30% higher than the price of electricity produced.

If the epidemic situation persists, the VLA proposes to the Government to have a mechanism to create more open conditions for import-export procedures in accordance with actual conditions for each short-term and long-term period, shortening the duration of the epidemic. customs clearance time. Support factories to expedite customs clearance of goods to save costs for businesses and society. Increase the progress and time to issue specialized permits, reduce the time of customs clearance and inspection at the port to release goods to avoid storage fees. Review taxes and fees, take measures to reduce transport costs such as BOT discounts, tolls, parking fees, vehicle storage fees, taxes on jet fuel…

Creating conditions for businesses in the issue of C/O issuance so that they are eligible for tax incentives when exporting to the EU and Indian markets under the EVFTA Agreement. For freight transport by road and rail, Vietnam is now very connected with China, so it is proposed that the Government direct and focus on increasing domestic exploitation, and at the same time expanding connections with other countries. in the ASEAN region via Thailand to help road transport can make up for the shortfall from restricting the transport of goods through China during the epidemic.