The 19 cities in Vietnam continued to be blocked, 70,000 companies closed down, and the largest port suspended receiving import and export containers!

The epidemic in Vietnam has further spread. Recently, nearly 10,000 new cases have been confirmed in a single day. 19 cities have continued to be blocked; industrial production has been blocked and a large number of factories have closed; port congestion has been severe and storage yards have been nearly saturated. Cat Lai and Newport, Vietnam Geme International Port Terminal (TCIT) notified it to suspend the acceptance of import and export containers.

01
Outbreak, 19 cities continue to be blocked

According to the latest data, there were 7,295 newly confirmed cases in Vietnam in a single day on August 5, and nearly 10,000 newly confirmed cases on August 4, with a total of 1,890,06 confirmed cases. Among them, Ho Chi Minh City, the "epicenter" of the southern Vietnam epidemic, added 3886 confirmed cases yesterday, accounting for half of the country's new cases.

 
In view of the tightening of the epidemic situation, the Prime Minister of Vietnam issued an order on July 31 to require 19 provinces, cities and regions in the south, including Ho Chi Minh City, to extend the lockdown and continue to implement a two-week lockdown measure, which is equivalent to the entire territory. One third was blocked due to the epidemic.
19 cities and provinces include: Ho Chi Minh City, Binh Duong, Dong Nai, Can Tho, Binh Phuoc, Tay Ninh, Ba Ria-Vung Tau, Qianjiang, Long An, Yonglong, Dong Thap, Bintang, Houjiang, An Giang, Bac Lieu, Souk Zhuang, Cha Rong, Jin Ou, Jian Jiang.
02
Industrial production is blocked, a large number of factories are closed

According to a report by "Vietnam Economics": The fourth wave of the virus outbreak of the new crown variant virus in Vietnam is fierce, leading to the temporary closure of a number of industrial parks and factories, and the interruption of production and supply chains in various regions due to the implementation of social quarantine, and the growth rate of industrial production in Vietnam has slowed down.
The 19 southern provinces and municipalities directly under the Central Government implemented social distancing in accordance with government instructions. Industrial production fell sharply in July, of which the industrial production index of Ho Chi Minh City fell by 19.4%.
According to the Ministry of Investment and Planning of Vietnam, in the first half of this year, a total of 70,209 enterprises in Vietnam closed down, an increase of 24.9% over last year. This is equivalent to 400 companies closing down every day.
 
It is reported that the main production bases of global brands from Toyota to Nike in Vietnam were forced to suspend work due to the blockade; electronics companies including Samsung and Foxconn are also facing production difficulties due to the blockade.
In addition, as the world's second largest exporter of textiles and garments, about one-third of Vietnam's textile and garment factories have been closed due to the epidemic. According to data from the Vietnam Textile and Apparel Association (Vitas), between 30% and 35% of garment factories in the country have closed down, among which Nike is one of the big brands.
After the most challenging year in history in peacetime, the global supply chain is likely to face even greater destruction.
03
The port is heavily congested and the reception of imported containers is suspended

Southern Vietnam has been blocked for nearly a month, port productivity has declined, and long queues of ships along the southern coast of Vietnam have lined up.
 
Not long ago, the Vietnamese port operator Saigon Newport Company stated that due to the epidemic, the Cat Lai port container yard is close to saturation, the number of dock workers has been reduced to half of the previous level, and forklift drivers and truck drivers are also facing shortages. If the container backlog cannot be reduced, receiving ships will be suspended.
According to the announcement on Hapag-Lloyd’s official website, the company stated that it has received notices from Cat Lai Port and Vietnam’s New Port Gaimei International Port (TCIT) on the suspension of receiving import and export containers.
The details of the notification are as follows:
For imported containers:

▪ From now on (August 5), we will suspend receiving imported containers from customers or companies whose production activities have been suspended or stopped;

▪ Before August 16, 2021, suspend the acceptance of imported refrigerated containers in order to process the unloaded cargo at the terminal and load it into other containers;

▪ From August 5, 2021, the receiving of goods that occupy a large yard space, such as oversized and overweight goods, project goods, OOG goods, etc., will be suspended until further notice;

▪ Limit the number of imported containers unloaded to the terminal yard;

▪ In the worst case, when the storage capacity of the container yard reaches the maximum allowable level, the terminal will stop accepting incoming ships.

For export containers:

▪ From August 5, 2021, the acceptance of goods that occupy a large yard space, such as oversized and overweight goods, project goods, OOG goods, etc., will be suspended until further notice.
Taking into account the cargo planning of the relevant cargo owner, the following solutions are provided:
Transshipment service: cargo transportation from Vung Tau to Cat Lai is subject to the final approval of Cat Lai. For any goods shipped to Cat Lai port, the customer must provide LOI and pick up the goods within 72 hours after the goods arrive at Cat Lai.

Direct service: If business or production is suspended, Cat Lai reserves the right to move the container to another terminal or ICD, and will always ensure that it maintains close communication with Hapag-Lloyd and its customers. Any costs incurred will be borne by the owner.

Where feasible, provide COD to alternative terminals/ICDs.
In addition, the chaotic port situation is spreading northward. Prior to this, the Vietnamese government decided to block the port of Qui Nhon in the central region of the country, where a larger outbreak has been detected. The foreign anchorage in Haiphong in the north of the country is also very busy.
I would like to remind shippers who have Vietnamese customers to pay attention to the latest news at the port in time, arrange shipments reasonably, and pay attention to shipping risks.