Vietnam is experiencing an outbreak of the highly infectious Delta variant forcing lockdowns, new regulations, factory shut downs, and supply chains disruptions. Vietnam has administered two vaccine doses to less than 3% of its population and cases have been surging over the past six weeks. The surge is causing the country to implement strict COVID-19 containment policies, including lockdowns and rules of hygiene/ COVID-19 prevention.
Vietnam operational information:
Ha Noi City:
- Ha Noi has now entered a “LOCKDOWN” due to increasing cases of COVID-19 Delta Variant.
- Ha Noi authority continues to implement social distance policies from July 24 to September 6, 2021. There are checkpoints set up in all districts.
- There is a high penalty applicable for people going outside without a company recommendation letter or for a non-emergency matter.
- All shopping malls are closed, food delivery/ app-based delivery services are only permitted within one district with a permit, public transportation is closed (only company buses to transport staff), supermarkets must strictly implement 5K rules of hygiene and COVID-19 prevention measures and close early.
- They have stopped receiving all buses from other cities/ provinces.
- All Truck drivers must have a valid test certificate and check temperature when gate in Ha Noi.
Hai Phong Port:
- All vessels and their crews arriving at Haiphong port must implement quarantine process.
- The city has set up the quarantine and fast test stations at city border/ gate in locations.
- All drivers must have valid Covid Fast Test Certificate and check temperature at 1st gate entering Hai Phong city.
- All drivers, forwarding/ logistics staff must check temperature and declare health status when they check in at terminals/ warehouses in Hai Phong.
- Staff and workers at all terminals are working on shift with maximum distance (such as night shift workers and morning shift workers remain separate).
- Shipping lines office staff are currently working 50-80% from home.
- All payment of infrastructure, port charges, other local charges must be settled 100% via bank transfer.
- All terminals encourage customers to arrange E-D/O via e-port/ smart port instead of paper D/O at port/ shipping lines office.
- All ports and warehouses are strictly implementing 5K health and cleanliness rules on COVID-19 and the Hai Phong City Government is applying high penalties and punishment for any company/ individual who mis-declare and/ or violate the rules.
- Hai Phong temporarily stopped receiving/ operating all flight from/ to Ho Chi Minh Airport.
- All buses arriving to Hai Phong are under strict control.
- Space remains extremely tight and there are equipment shortages.
- All factories must implement 5K rules under strict control of local authority.
Air Freight- Noi Bai International Airport- HAN:
- Airport staff/workers are working on shift with maximum distance.
- Beginning Tuesday, August 24, 2021, there were some air shipment cancellations.
- Air freight rates are increasing daily.
- There are longer wait times for drivers to deliver cargo to the terminal.
- Hai Phong temporarily stopped receiving/ operating all flight from/ to Ho Chi Minh Airport.
Air Freight- Tan Son Nhat International Airport- SGN:
- SGN has entered a lockdown beginning on August 23, 2021.
- 50% of air shipments have been cancelled due to the outbreak.
- SGN has extreme backlogs and delays due to the decreased workforce at TCS & SCSC (airport terminal handlers at SGN).
- Cut off times are around 6-8 hours earlier than usual.
- 90% factories in HCMC are closed and only the ones who meet the new regulation requirement can partially open.
- 70% of factories in surrounding provinces Dong Nai, Binh Duong, Long an are closed until September 6, 2021.
Sea Exports to Vietnam:
- FCL containers from CAI MEP to CAT LAI are delayed.
- Picking containers up from CAT LAI are impacted due to limited truck availability.
- LCL shipments extremely delayed because many warehouse workers live in Dong Nai province, causing a shortage in staff.
- All courier services have ceased operations seriously affecting the import operations.
- Banks are operating with 10% of staff to handle bank transfers.
Customs and Trucking Situation:
- Customs clearance for all import/ export/ consolidation services are experiencing extreme delays due to new restrictions.
- The customs authorities have updated that they will have only 10% of staff to be on duty. Some customs officers are still waiting for the travel permits to get their offices.
- Trucks can only move with the current approved QR code which faces a delays in issuing.
- Port labor is currently maintained around 50% causing delays in operations.
- Most provinces require truckers/ labor force to provide negative COVID-19 test results to enter.
Overall Update on Ho Chi Minh and Surrounding Provinces:
- Cases are increasing more than ten thousand cases per day with a high mortality rate and extreme measures are in place for testing and controlling the movement of civilians during the “HARD LOCKDOWN” by the Army, Police, and security functional force.
- Food is distributed to all residents by the armed forces effective from August 23, 2021, and no one is allowed to shop independently.
- There are increasing cancellations of bookings from shippers as the COVID-19 cases in Industrial Park areas are rising rapidly.
- Cancellations and delays are now extremely high and rising for factories in HCMC and surrounding area.
- Many Factories are still struggling to implement these measures causing further delays.
We will continue to monitor the situation in Vietnam and update our clients accordingly. If you have any further questions, please contact us today.
