High air transport charges place heavy burden on Vietnamese exporters
Many Vietnamese exporters are facing multiple difficulties as air transport charges have been revised up sharply by foreign airlines amid the hardships caused by the ongoing global coronavirus pandemic.
Many Vietnamese fruits, including rambutans, longans, litchis and star apples, have had to be transported to foreign markets by air as these fruits are perishable and seasonal and have a short life cycle. However, the air transport charges for these fruits have doubled those before the pandemic, stated some fruit exporters.
Nguyen Dinh Tung, general director of Vina T&T Group, told Phap Luat Online that the charges for transporting fresh fruits by air from HCMC to the United States have risen to US$5.4 per kilogram from US$3.2.
The rise in air transport charges has sent the prices of Vietnamese fruits up in foreign markets, making it difficult to compete with other exporters’ products.
The Vina T&T Group representative attributed the hike in air transport charges to a sharp fall in the revenue of foreign airlines supplying goods transportation services, following the reduction in flight frequency triggered by the global health crisis.
He also added that as Vietnam has yet to introduce any airline specializing in transporting goods to foreign countries, local exporters depend heavily on foreign airlines and face high charges.
Apart from fresh products subject to high rates, air transport charges for dried goods and other items have also been revised up.
A representative of a firm specializing in exporting masks noted that the charges for the transportation of masks by air has surged to US$11 per kilogram from US$4 for over one month due to the rising demand for masks following the upsurge in Covid-19 cases in the global market.
As such, many local exporters have voiced an outcry over the high air transport charges compared with those in the global market.
Although Vietnam has yet to own a fleet of aircraft specializing in transporting goods, Vietnam Airlines and Vietjet have quickly begun introducing flights to transport goods to foreign countries, including Japan, South Korea, China, Thailand and Malaysia.
These flights have contributed to connecting trade exchange activities between Vietnam and other countries amid the ongoing pandemic, according to a representative of Vietnam Airlines.
Do Xuan Quang, deputy general director of Vietjet, told a recent teleconference on the reduction in logistics fees that some 90% of the overseas delivery of Vietnamese products is being done by foreign airlines.
As such, it is necessary to open direct air routes to transport Vietnamese goods to foreign markets, Quang said, adding that Vietjet is set to launch direct air services for the transportation of goods from Hanoi City to Chicago and Los Angeles on September 2 in cooperation with a U.S. carrier. SGT
Fewer orders have been placed during the COVID-19 crisis, so Vietnam’s exporters have had to become more creative, introducing new products to choosy markets to boost sales.
The Ministry of Industry and Trade has extended the period of selecting prestigious exporters for 2019 until May 30, one month later than the schedule of April 30 due to the impact of the COVID-19 pandemic.