Research report on impact of covid 19 on the export and import of goods in vietnam

In recent years, Viet Nam has made significant achievements in foreign trade.Despite the impact of the Covid-19 pandemic, Vietnam has recorded andmaintained a trade surplus and positive

INTERNATIONAL SCHOOL OF EDUCATION

SEMINAR I REPORT

RESEARCH REPORT ON IMPACT OF COVID-19

ON THE EXPORT AND IMPORT OF GOODS IN VIETNAM

Students name : Dao Viet Trinh - 89548

Dao Thi Hong Lich - 86270 Tran Thu Truc - 86465

Le Trung Hieu- 86681

Hai Phong, 2022

In recent years, Viet Nam has made significant achievements in foreign trade.Despite the impact of the Covid-19 pandemic, Vietnam has recorded andmaintained a trade surplus and positive growth in the industry However, due tothe pandemic, the industry has been facing various challenges and obstaclessuch as the disruption in the global supply chains, drastic decline in the demandsfor goods and services, severe competition among exporters, and internalhindrance in manufacture and exports This paper focuses on analyzing VietNam’s imports and export COVID-19, the import and export situation inVietnam before and after Covid-19, policies and orientations of the party andstate

TABLE OF CONTENT

PREFACE

TABLE OF CONTENT

LIST OF FIGURES

LIST OF TABLES

INTRODUCTION

Chapter 1 Literature Review

1.1 Export and import

1.1.1 Definition

1.1.2 Overview of studies on import and export

1.2 The impact of COVID-19 on import and export

1.3 Gap of research

1.4 Research question

Chapter 2 Research Framework

2.1 Overview of import and export

2.1.1 Import

2.1.2 Export

2.1.3 Regulations on the export and import of goods

2.1.4 Import and export procedures

2.1.5 List of goods banned from export in Vietnam

2.1.6 List of goods banned from import in Vietnam

2.2 Overview of COVID-19

Chapter 3 Research Methodology

3.1 Data sources

3.2 Data collection methods

3.3 Data processing

Chapter 4 Results

4.1 The current situation of import and export in Vietnam

4.2 The current situation of import and export in Vietnam before and after Covid-19

4.3 Impact of COVID-19 on Imports and Exports of Goods

4.4 Solution

4.4.1 General solution

4.4.2 For export activities

4.4.3 For import activities

4.5 Policies and orientations of the Party and State

Chapter 5 Conclusion

REFERENCES

LIST OF FIGURES

Figure 4.1 Compare the growth rate of Vietnam's export turnover with

China and Thailand (2011-2020) (%)

33

LIST OF TABLES

Table 4.2 Import and export of goods of Vietnam in the period 2011-2020 35

1 Necessary of the topic

Today's international economic integration is an inevitable and objective trend

In recent years, the trend of economic globalization is associated with thedevelopment of science and technology, and the leaping development of theproductive force due to the international division of labor taking place on aglobal scale The market economy is an open economy, so each country needs

to have relationships with the world market, no country can develop its economyapart from the world market Following the general trend of the world, Vietnam

is also gradually integrating into the world economy Vietnam is in the process

of doi moi, transitioning to a socialist-oriented market economy, and promotinginternational cooperation is an important issue of the doi moi process

Import and export are one of the main forms of foreign economic relations Foreach country, especially a developing country like Vietnam, foreign trade has agreat and very important effect The expansion of world economic exchangeswill expand import and export markets, attract foreign investment, acquireadvanced science and technology, valuable experiences of developed economiesand create a favorable environment for economic development

Currently, the outbreak of the Covid-19 epidemic has not only seriously affectedhealth but also negatively impacted economic development in countries aroundthe world Policies to close national borders as well as restrict the circulation ofgoods and services have severely reduced trade activities The Covid-19pandemic from the beginning of 2020 up to now has affected productioncapacity, and the market, Faced with these problems, it is necessary forbusinesses and the State to have appropriate policies and directions suitable toovercome difficulties and promote export markets again

For the above reasons, the topic: "The impact of Covid-19 on the import andexport of goods in Vietnam" was studied with the hope of presenting the current

situation and the impact of covid-19 on import and export in Vietnam, and at thesame time giving specific directions to overcome that situation.

2 Object and range of the study

Research object: Import and export in Vietnam.

Range of content: Focusing on researching the import and export of goods in

Vietnam before the unpredictable impact of the Covid-19 pandemic

Spatial range: Focusing research within Vietnam.

Time range: Studying the current situation of import and export of goods in

Vietnam through data from 2010-2021 (before and during the pandemic)

3 Contents of the report

The report consists of five chapters:

Chapter 1: Literature review

Chapter 2: Research Framework

Chapter 3: Research Methodology

Chapter 4: Results

Chapter 5:Conclusion

Chapter 1 Literature Review 1.1 Export and import

According to the Law of the Republic of Indonesia, import is the activity ofentering goods into the customs area Literally, imports can be interpreted as theactivities of entering goods from a foreign country into the customs territory ofour country (Susilo, 2008)

For purposes of U.S export control laws, the term “export” covers a broad range

of activities that include the export of products, services, or information Ingeneral, an export occurs when there is any transfer to any non-U.S person,either within or outside of the U.S., of controlled commodities, technology, orsoftware, by physical, electronic, oral, or visual means, with the knowledge orintent that the items will be shipped, transferred, or transmitted outside of theU.S.Importing involves bringing products or services into a country for sale that

have been made elsewhere

1.1.2 Overview of studies on import and export

Up to now, there have been a number of topics, referring to the field of importand export Each article approaches the problem in different aspects, includingcontent, scope, objects, and research methods

In the article "The Effect of Export, Import, and Investment to EconomicGrowth of Riau Islands Indonesia" (Dwi Kartikasari, 2017) This article aimed

to analyze the effect of export, import, and investment on the economic growth

of Riau Islands Indonesia The author uses panel data regression analysis wasimplemented to analyze the influence of independent variables on the dependentvariable

In the research paper "Imports and Exports of the USA" (Swathi PriyaMannepalli, 2015) The author mentioned how goods are delivered fromexporters to importers The product can be shipped by truck, train, and if liquid,

by pipe, if land routes exist But much has to be sent on ocean-worthy ships, likebulk carriers and tankers.

In the article of the group of authors DR Paul Dhinakaran and N Kesavan(2020) The present paper is presenting the exports and imports stagnation inIndia during COVID-19 The authors have explored the Exports and imports ofIndia- at a glance, trends in the industrial sector, Industry and Infrastructure ofIndia at a glance, Economic inflation, foreign trade and national income presentscenario, Inflation forecast, Union budget 2020-21, and controversy of COVID-

19 Circumstances, Logistics performances of India during COVID-19, Exportsand imports stagnations

In the article of the author group Wang, R.; Mo, Y Y(2022) This articlediscusses the impact of COVID-19 on import and export trade, and what rolesthe degree of epidemic spread, the degree of malignancy, and the governments'epidemic prevention and control responses have played in the waves of COVID-

19 infections

1.2 The impact of COVID-19 on import and export

A research paper by Kazunobu Hayakawa and Hiroshi Mukunoki (2021)examined how the impact of COVID-19 on international trade changes overtime To do that, they explore monthly data on global trade from January toAugust 2019 and 2020 Although it is difficult for them to pinpoint the exact enddate of the first outbreak in each country, most countries had their highestnumber of confirmed infections or deaths around April 2020 COVID-19 hassignificantly impacted international trade in a variety of ways In exportingcountries, the damage caused by COVID-19 is reflected in the decrease inproduction scale and export supply in that country As a result, exports areexpected to decline, especially in industries and countries where remote work oroperations are less feasible The reduction in their source of income and theirvisits to retail stores has resulted in a decrease in demand Specifically, theirresearch data includes exports from 34 countries to 173 countries Their findingscan be summarized as follows:

First, they have seen significant negative effects of COVID-19 on internationaltrade by both exporting and importing countries

Second, those effects, especially the impact of COVID-19 on importingcountries, tend to become negligible since July 2020 This result implies that theharmful impact of COVID -19 on international trade has been adjusted to someextent after the first wave of the pandemic

Third, they found heterogeneous effects across industries The negative effects

on durable, non-essential products persist for a long time On the other hand, theimpact on machine products, including information technology-related products,has become negligible since July Furthermore, they found positive effects ofCOVID-19 on importing countries in some medical products, even during theperiod from March to May

Fourth, labor-intensive industries such as textiles and clothing are likely to benegatively impacted by COVID-19 in exporting countries In particular, thenegative impact on the leather and footwear industry lasted until August Thetransport equipment industry was also negatively affected by COVID-19 inexporting countries, especially in April and May

This article “Impact of COVID-19 on Trade in Goods and Services in Spain”analyzes the impact of COVID-19 on trade in goods and services in Spain Thepandemic has led to the steepest drop in trade in recent decades, reducing thevalue of Spain's trade flows In addition, the large share of transport equipment,capital goods, products consumed outdoors and tourism in Spain's exports, andindeed the demand for these products These products and services havedecreased significantly during the COVID-19 crisis, the pandemic has had agreater negative impact in Spain than in the rest of the EU

This article began with a chronology of the trade decline caused by COVID-19

in Spain Although the first news of the arrival of COVID -19 was in January

2020, so the trade crisis did not begin until restrictive measures were introduced

in Spain The most severe phase of the crisis crisis occurred from the second half

of March to May 2020, when very serious risk containment measures wereimplemented

Second, to understand the severity of the trade slowdown, they comparedexports that fell during the COVID-19 crisis to the Great Recession of 2008–

2009 They only said that exports fell faster during the COVID-19 crisis, but thetotal decline in commodity exports was lower than during the COVID-19 crisis.Third, they argue that COVID-19 has a larger negative impact on Spain's exportsthan the rest of the EU They also illustrate that COVID-19 has a heterogeneousimpact on the exports of goods by the Spanish regions

Fourth, they analyzed whether the Spanish company's reliance on importedgoods contributed to the COVID-19 trade crisis Despite this dependence,Spanish exporters have failed to identify disruptions in the supply chain as themain factor leading to the drop in trade flows However, increased demand formedical materials and equipment and the fact that Spain was dependent on

imports prior to the COVID-19 crisis have led to serious supply problems usethese products in the early stages of a health crisis.

Fifth, they speculated whether the COVID-19 crisis would cause permanentchanges to Spain's trade They argue that it could lead to changes in thecomposition of services exports, which would have a negative impact on Spain'sexport growth over the long term and increase the concentration of Spain'sexports in EU countries

1.3 Gap of research

By summarizing the literature on the COVID-19 pandemic, it can be seen thatthe current research object is mainly focused on countries such as China, theUSA, and so on, with little analysis of Vietnam's imports and export This articletakes Vietnam's import and export volume as an explanation of the severity ofthe pandemic, and also shows the advantages and disadvantages of governmentcontrol measures in the shipping industry

1.4 Research question

- What are imports and exports?

- How has the import and export situation of Vietnam been since the outbreakappeared?

- The impact of covid-19 on import and export in Vietnam

- Solutions proposed for Vietnam's import and export in the context of 19

COVID-Chapter 2 Research Framework 2.1 Overview of import and export

2.1.1 Import

Import is a significant international commercial activity that has a direct andsignificant impact on both productivity and quality of life, according to Le MaiTrang's textbook on international economic integration The fundamental phases

of international commerce are import-export, and import-export operations inparticular Imports are simply operations that include exchanging foreigncurrency for foreign products and services that are then used for localconsumption or reexported for profit With the help of imports, nations canacquire commodities and resources that they are unable to produce domestically

or that can be produced more affordably and effectively outside These productsand services may be imported by private parties, public entities, or governmentsfor resale to end users or use in the manufacture of other goods

Imports might be finished goods like automobiles, televisions, computers, andsports shoes, or they can be raw materials, such as zinc, oil, wood, or grains.They can also be services, such as financial services, travel services, andinsurance

2.1.2 Export

In the international trade curriculum of Dinh Thi Lien (2011): "Commodity tradeactivities is the first field of activity that appears in international trade,constantly developing and still formal The most common and most importantoperation today" According to the Commercial Law No 36/2005/QH11 datedJune 14, 2005, of the National Assembly of the Socialist Republic of Vietnam,

"The export of goods is the goods being removed from the territory of Vietnam

or Putting into a special area located on the territory of Vietnam is considered aseparate customs sector in accordance with the law." Another definition ofexports given in Feenstra and Taylor's international trade curriculum (2010) is

"countries buying and selling goods and services from each other Sold fromcountry to country"

The U.S Governmental agencies define the term "Export" broadly It is notlimited to the shipment of an item to an overseas country When applying theU.S Export regulations, the Pitt community should be familiar with thefollowing definition: Export is defined as an actual shipment or transmission ofitems out of the United States This includes standard physical movement ofitems across the border by truck, car, plane, rail, or hand-carry Technology andsoftware may be exported or reexported both physically or electronically, such

as through email, telephone discussions, fax, posting on the internet, and avariety of other non-physical means

The concept of exports can be defined as follows: Export is the sale of goodsand services (tangible or intangible) to another country on the basis of usingcurrency The currency here is the foreign currency for a country or for bothcountries The purpose of this activity is to exploit the advantages of eachcountry in the international division When the exchange of goods amongcountries is beneficial, all countries actively participate in expanding thisactivity Thus, exports are understood as an exchange of goods and services of acountry with the rest of the world through buying and selling in order to fullyexploit the country's advantages in the international division The establishment

of export is the trading and exchange of goods (including invisible and tangiblegoods) in the country Until the development of goods and the exchange ofgoods among countries are beneficial, this activity expands the scope outside theborder of countries or between the domestic market and the export processingzone

2.1.3 Regulations on the export and import of goods

Regarding exported and imported goods subject to inspection, according to theprovisions of Article 65 of the Law on Foreign Trade Management 2017, withspecific contents as follows:

- Imported and exported goods subject to inspection include:

+ Goods subject to technical and quarantine measures specified in Articles 61,

62, 63, and 64 of this Law;

+ Potentially unsafe goods or potentially unsafe goods according to warninginformation from international, regional, or foreign organizations;

+ Goods that the competent authority finds unsuitable and must be inspectedunder the provisions of law

- Goods specified in Clause 1 of this Article shall be inspected according to theprinciples specified in Clause 2, Article 60 of this Law and conducted byagencies or organizations designated by competent state agencies

- Ministers and heads of ministerial-level agencies shall, within the ambit oftheir tasks and powers, issue a list of goods subject to inspection specified inClause 1 of this Article

Regarding goods banned from export and import, according to the provisions ofArticle 5 of Decree 69/2018/ND-CP specifically as follows:

- Goods banned from export or import comply with the provisions of currentlegal documents and the List of goods banned from export or import specified inAppendix I of this Decree

- Pursuant to Appendix I of this Decree, ministries and ministerial-level agenciesshall announce details of goods banned from export and import, together withthe goods code (HS code) on the basis of discussions and agreement with theMinistry of Industry and Trade Industry and Trade on the list of goods andagreed with the Ministry of Finance on HS codes.

- The Prime Minister considers the decision to permit the export of goodsbanned from export; permit the import of goods banned from import for specialpurposes, warranty, analysis, testing, scientific research, medical,pharmaceutical production, defense, and security protection

Regarding goods imported and exported under permits, conditions, andaccording to the provisions of Article 6 of Decree 69/2018/ND-CP, specifically

- Pursuant to Appendix III of this Decree, ministries and ministerial-levelagencies shall promulgate or submit to competent agencies for promulgationdetailed regulations on the issuance of export and import permits in accordancewith law and regulations perform licensing in accordance with regulations

- Based on the operating objectives in each period, the Minister of Industry andTrade shall prescribe the application of automatic export licenses and automaticimport permits for a number of goods

2.1.4 Import and export procedures

Procedures for exporting and importing goods are specified in Article 4 ofDecree 69/2018/ND-CP as follows:

- For goods imported or exported under permits, export and import traders mustobtain permits from relevant ministries or ministerial-level agencies

- For goods to be exported or imported under conditions, the exporter orimporter must satisfy the conditions prescribed by law

- For goods on the List of exported and imported goods subject to inspectionaccording to the provisions of Article 65 of the Law on Foreign TradeManagement, exporters and importers of goods must be subject to inspection bycompetent agencies in accordance with the law

- For goods not falling into the cases specified in Clauses 1, 2, and 3 of thisArticle, traders only have to settle export and import procedures at the customsoffice.

2.1.5 List of goods banned from export in Vietnam

Table 2.1: List of goods banned from export in Vietnam

ministerial-level agencies havemanagement competence

industrial explosives), and military-technical

equipment

Ministry of Defence

2 Cryptographic products are used to protect

State secret information

Ministry of Defence

3 a) Relics, antiquities, and national treasures in

accordance with the law on cultural heritage

b) Types of cultural products banned from

dissemination, circulation, or a decision on

suspension of dissemination, circulation,

withdrawal, confiscation, and destruction has

been issued in Vietnam

Ministry of Culture, Sportsand Tourism

4 a) Types of publications banned from

dissemination and circulation in Vietnam

b) Postage stamps banned from trading,

exchanging, displaying, and propagating in

accordance with the Postal Law

Ministry of Information andCommunications

5 Round timber, sawn timber of all kinds from

domestic natural forest wood

Ministry of Agriculture andRural Development

6 a) Specimens of endangered, precious, and

rare wild fauna and flora listed in Appendix I

of CITES are of natural origin or; Specimens

of endangered, precious, and rare forest

plants and animals of groups IA and IB

according to the provisions of Decree No

32/2006/ND-CP are exported for commercial

purposes

b) Specimens and manufactured products of

the species: white rhinoceros (Ceratotherium

simum), black rhinoceros (Diceros bicomis),

and the African elephant (Loxodonta

africana)

c) Endangered, precious, and rare wild

Ministry of Agriculture andRural Development

species of group I.

d) Aquatic species on the List of aquatic

species banned from export

e) Animal breeds and plant varieties on the

List of rare and precious livestock breeds and

rare plant varieties banned from export

promulgated by the Ministry of Agriculture

and Rural Development in accordance with

the 2004 Ordinance on Animal Breeds and

France 2004 Plant Varieties Order

7 a) Schedule 1 chemicals are specified in the

Convention prohibiting the development,

production, stockpiling, use and destruction

of chemical weapons and the Appendix

issued together with Decree No

38/2014/ND-CP dated 06 May 2014 on the management of

chemicals under the control of the

Convention prohibiting the development,

production, stockpiling, use and destruction

of chemical weapons

b) Chemicals on the List of banned chemicals

specified in Appendix III issued together with

the Government's Decree No

113/2017/ND-CP dated October 9, 2017, detailing and

guiding the implementation of a number of

Articles of the Chemical Law

Ministry of industry andtrade

Source: Law On Foreign Trade Management 2017

2.1.6 List of goods banned from import in Vietnam

Table 2.2: List of goods banned from import in Vietnam

ministerial-level agencies with management competence

industrial explosives), and

military-technical equipment

Ministry of Defence

2 Firecrackers of all kinds (except for marine

safety beacons under the guidance of the

The Ministry of PublicSecurity

Ministry of Transport), sky lanterns, and

devices that interfere with traffic

speedometers

3 a) Schedule 1 chemicals are specified in the

Convention prohibiting the development,

production, stockpiling, use and destruction

of chemical weapons and the Appendix

issued together with Decree No

38/2014/ND-CP dated 06 May 2014 on the

management of chemicals under the control

of the Convention prohibiting the

development, production, stockpiling, use

and destruction of chemical weapons

b) Chemicals on the List of banned

chemicals specified in Appendix III issued

together with the Government's Decree No

113/2017/ND-CP dated October 9, 2017,

detailing and guiding the implementation

of a number of Articles of the Chemical

Law

Ministry of industry and

trade

and vehicles, including groups of goods:

a) Textiles, footwear, and clothing

b) Electronic goods

c) Refrigeration goods

d) Household electrical goods

e) Medical equipment

f) Interior decoration goods

g) Household goods made of ceramic,

crockery, glass, metal, plastic, rubber,

plastic, and other materials

h) Bicycle

i) Motorcycles, mopeds

Ministry of industry and trade

5 Types of cultural products banned from

dissemination or circulation or for which a

decision has been made to suspend

dissemination, circulation, recall,

confiscation, and destruction in Vietnam

Ministry of Culture, Sportsand Tourism

6 Goods are used information technology

products

Ministry of Information andCommunications

7 a) Types of publications banned from

dissemination and circulation in Vietnam

Ministry of Information andCommunications

b) Postage stamps banned from trading,

exchanging, displaying, and propagating in

accordance with the Postal Law

c) Radio equipment, equipment applying

radio waves not in accordance with the

radio frequency planning and relevant

technical regulations under the provisions

of the Law on Radio Frequency

8 a) Right-hand drive means of transport

(including the disassembled form and the

form that has been converted to the steering

wheel before being imported into

Vietnam), except for special-use vehicles

with right-hand drive operating within the

narrow and do not participate in traffic,

including crane trucks; trenching machine;

road sweeper, road irrigation; garbage

trucks and domestic waste; road

construction vehicles; passenger cars in the

airport; forklifts in warehouses and ports;

concrete pump trucks; Vehicles only move

in golf courses and parks

b) Automobiles, four-wheeled vehicles

with engines and assembled components

have been erased, chiseled, modified, and

have their chassis numbers and engine

numbers closed

c) All types of trailers and semi-trailers

have their frame numbers erased, chiseled,

and re-closed

d) Motorcycles, special-use motorcycles,

and mopeds that have been erased,

chiseled, repaired, or re-closed with frame

numbers and engine numbers

Ministry of Transport

9 Used materials and means, including:

a) Machines, frames, tubes, tires, spare

parts, engines of cars, trailers, semi-trailers,

and four-wheeled vehicles with engines

b) Chassis of cars and tractors with engines

(including new chassis with used engines,

used chassis with new engines),

c) Types of automobiles whose structure

has been changed to convert functions

Ministry of Transport

compared to the original design.

d) Used cars, trailers, semi-trailers (except

for special-purpose trailers and

semi-trailers), and four-wheeled passenger

vehicles with engines, which are older than

5 years from the year manufactured to the

12 a) Specimens of endangered, precious, and

rare wild fauna and flora listed in Appendix

I of CITES are of natural origin and

imported for commercial purposes

b) Specimens and manufactured products

of the species: white rhinoceros

(Ceratotherium simum), black rhinoceros

(Diceros becomes), the African elephant

14 Products and materials containing asbestos

belong to the amphibole group

The first case of COVID-19 was reported on Dec 1, 2019, and the cause was athen-new coronavirus later named SARS-CoV-2 SARS-CoV-2 may haveoriginated in an animal and changed (mutated) so it could cause illness inhumans In the past, several infectious disease outbreaks have been traced toviruses originating in birds, pigs, bats, and other animals that mutated to becomedangerous to humans The coronavirus can be spread from person to person It isdiagnosed with a test.

As of now, researchers know that the coronavirus is spread through droplets andvirus particles released into the air when an infected person breathes, talks,laughs, sings, coughs or sneezes Larger droplets may fall to the ground in a fewseconds, but tiny infectious particles can linger in the air and accumulate inindoor places, especially where many people are gathered and there is poorventilation This is why mask-wearing, hand hygiene, and physical distancingare essential to preventing COVID-19 COVID-19 can be severe and has causedmillions of deaths around the world as well as lasting health problems in somewho have survived the illness

The best way to protect yourself is to get vaccinated and boosted when you areeligible, follow testing guidelines, wear a mask, wash your hands and practicephysical distancing

Chapter 3 Research Methodology 3.1 Data sources

Data sources used in the study include primary and secondary data sources.Secondary data sources were collected from journal articles journals, doctoraltheses, domestic and foreign studies, data and reports of the General StatisticsOffice

Primary data sources are the information gathered from the survey direct surveyconducted

3.2 Data collection methods

The method of collecting relevant secondary data requires search work,consisting of two interconnected stages:

Step 1: Determine whether the data type should be present as secondary data.Step 2: Locate the exact data needed

The primary data collection methods used in the thesis include individual depth interviews, group discussions, and direct quantitative interviews

Figure 3.1: Vietnam's export turnover from 2017-2021

Source: The World Bank

According to The World Bank, Vietnam's total export turnover has increasedfrom 228.93 billion USD in 2017 to 340.97 billion USD in 2021 Accordingly,

export turnover will increase 1.5 times after 4 years On average, Vietnam'sexport turnover reached about 280.94 billion USD/per year.

Figure 3.2: Top 10 Vietnam Export Commodities in 2018

Source: Vietnam Trades

Table 3.1: Product code of Top 10 Vietnam Export Commodities in 2018

HS

Code

(%)