Vietnamese businesses have difficulty exporting medical masks and gloves

worker in masks and gloves factory

On June 3, Ho Chi Minh City Trade and Investment Promotion Center (ITPC) held a seminar “Matters to note when exporting medical protective equipment” to remove difficulties for businesses that want to export. masks, medical gloves …

The Covid-19 epidemic broke out and spread, leading to a surge in demand for epidemic prevention equipment, especially the group of personal protective medical supplies such as masks, medical gloves, and protective clothing. household …

 

According to estimates of the World Health Organization (WHO), by the end of 2020, the world needs 2.2 billion surgical masks, 1.1 billion medical gloves, 13 million goggles and 8.8 million. Face shields serving the prevention and control of Covid-19 infection.

female workers in gloves and masks factory
Many businesses find it difficult to export medical equipment for epidemic prevention

Vietnam currently has about 200 enterprises producing Covid-19 anti-epidemic products, such as masks, medical gloves (both nitrile and latex ones), medical goggles, and epidemic prevention clothing. Faced with the increasing demand for this product in the world, domestic manufacturers need to increase capacity by 40%.

Ms. Cao Thi Phi Van, Deputy Director of ITPC, informed that when the domestic medical protective equipment market was filled and the demand of other countries increased, the enterprise’s goal was to export. However, this is a special group of goods related to medical standards, so many businesses have difficulty accessing the market, especially the US and EU.

With the same point of view, Mr. Nguyen Tran Khanh Hoang, CEO of Super Cargo Service, shared that the opportunity for Vietnam to boost export of medical protective equipment is huge, on the one hand due to the sudden increase in urgent use On the other hand, Vietnamese enterprises are having advantages in many markets applying import tax incentives compared with the same category of other countries.

 

However, the difficulties that most exporters of medical protective equipment are facing today are the lack of documents and certificates, not understanding the import process of the destination market, the lack of means of transport and high transportation costs.

 

 

Specifically, up to now, Vietnamese enterprises mainly export to the US, EU, Australia … common consumer goods, have no experience in exporting medical protective equipment, so they do not know the requirements. standard witnesses and vouchers of these countries for goods used in the medical sector, leading to the case when signing export contracts, transporting goods out of the country does not prepare all the necessary documents.

 

In addition, due to the impact of the epidemic, transportation activities in many areas were interrupted, making businesses unable to find means of transportation or if they had means, transportation costs were very high. Currently, the average freight from Vietnam to the US by air is over 10 USD / kg.

 

According to Mr. Nguyen Tran Khanh Hoang, high freight rates, while businesses do not know the requirements of documents, do not know the import process of the market, will lead to great risks. In case the goods are transported to the port but the customs cannot be cleared, the enterprise is forced to bring the goods back, the transportation cost will double while the goods cannot be sold, the economic damage is very large.

 

Ms. Pham Thi Hoang Oanh, Managing Director of Indochine Vina said that in order to take advantage of opportunities to export medical protective equipment, businesses need to actively seek out all information related to the import market. It is not just the need for quantity, but also the applicable standards for the product related to the medical sector as well as the import process to comply with, thus the customs clearance process will be smooth. In particular, Ms. Oanh emphasized the factors of raw materials, production processes must be of quality to ensure that the output products meet the high demands of importing countries.