HQTS: Latest Supply Chain & Trade Updates across Asia – Report #5

HQTS have a range of service locations across Asia. They have collected important supply chain and trade related information from each of them to help you fully understand the current situation affecting your business.

 

China

The import and export volume in the first quarter of 2020 has decreased when compared to the first quarter in 2019.  In fact, it’s recovering and growing fast as the resumption of work and production across China continues.

China is gradually returning to normal operation and is taking all the necessary measures to prepare against the possibility of a second wave of the outbreak.  The majority of factories and foreign trading enterprises in all the major cities across China have been functioning as usual since April 2020.

In the Hubei Province, the epicenter of the coronavirus epidemic, 44,205 enterprises have reopened, with the worker return rate as high as 98.4%. The gross merchandise volume has increased 1164% when compared to the same period of the previous year.

 

Bangladesh

Restriction policies on travelling, logistics and business operations

Bangladesh has extended a nationwide lockdown until at least May 16th to help control the spread of coronavirus.

Financial and trading policies:

Export ready-made garment factories have reopened from April 26, with a limited capacity and a minimum number of workers. According to the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the factories located in Dhaka and the Dhaka Metropolitan area reopened between April 26th-27th, while factories in Ashulia, Savar and Dhamrai and Manikganj reopened on April 28th, 29th and 30th.

 

India

Restriction policies on traveling, logistics and business operation:

The Indian government extended the lockdown until at least May 17th. However, considerable relaxations have been announced across red, orange and green zones according to the spread of COVID-19 cases. Health officials will continue to review the classifications every week.

Financial and trading policies:

The Indian government has started to relax its lockdown measures in some parts of the country. Some of the restrictions began easing on April 20th, with the resumption of agricultural, fisheries, animal husbandry, tea and coffee plantation work and cargo transportation. The government has also allowed some neighbourhood stores to reopen outside the known dangerous zones from April 25th and therefore, provide relief for small, cash-strapped businesses.

India has helped to provide assistance to the poor as the economy ground to a halt. The government has given out around 1,000 rupees ($14) to each of more than 350 million people under a state program. They also distributed food grains to more than 50 million people and offered free cooking gas bottles to around 10 million people.

 

Vietnam

Restriction policies on traveling, logistics and business operation:

Vietnam ended social isolation guidelines from April 22, including Hanoi and Ho Chi Minh City. Customs clearances have resumed at the Tan Thanh Po Chai border gate in the northern Lang Son province with China from April 30.

Restrictions will continue to remain in some high-risk areas for bars, clubs, spas, theatres and sports centres. Restaurants and eateries must comply with strict guidelines from the local authorities.

Financial and trading policies:

The Ministry of Transport are allowing an increase in the frequency of domestic flights on the Hanoi-Ho Chi Minh City route as well as reopening other domestic routes. Vietnam has stated that it will organise flights to bring any Vietnamese citizens from Canada, France, Indonesia, Japan, The Philippines, Russia, Singapore, Spain, Thailand, USA and the UAE.

 

Malaysia

Restriction policies on traveling, logistics and business operation:

Malaysia will enter a conditional movement control order (CMCO) from May 4th, in a move to help restart its economy. This is happening sooner than expected, the fourth phase of the movement wasn’t due until May 12th.

Financial and trading policies:

Almost all economic sectors and business activities will be allowed to resume, subject to conditions and standard operating procedures laid down by the authorities.

Some businesses will be allowed to fully operate. Although, the government has requested that employers implement flexible working hours and encourage working from home. Religious, sports and recreational activities that involve large gatherings will continue to be banned and all schools will remain closed.

 

The Philippines

Restriction policies on traveling, logistics and business operation:

The President has extended the lockdown of Metro in Manila to May 15th to curb any new coronavirus infections. The measures will be expanded to other regions with large outbreaks too.   However, measures in lower-risk areas will see a partial resumption of work, transport services and commerce businesses.

Financial and trading policies:

All commercial flights in and out of the Philippines were suspended from May 3rd to help prevent any further spread of the Covid-19 virus. Cargo and maintenance flights and flights carrying medical supplies will be allowed to continue.

The government has set aside around $23 billion in funding, or around 5% to 6% of its gross domestic product for healthcare and economic efforts.

The Philippines is planning for a “bounce-back” package to help the economic state caused by the pandemic.

 

Singapore

Restriction policies on traveling, logistics and business operation:

Singapore will allow companies to resume business operations gradually from May 12th while maintaining a partial lockdown until June 1st.

Community transmissions in Singapore are tapering off, the highest number of infections are mostly in dormitories inhabited by migrant workers. These figures have pushed the overall cases in the city to the highest in Southeast Asia.

Financial and trading policies:

The reopening of the economy in Singapore will be gradual and progressive with some sectors given priority in resuming operations. Focusing mainly on manufacturing and production. Priority will be given to the sectors that are closely linked with global supply chains. Such as, biopharma, petrochemicals and precision manufacturing. Many of these sectors have been allowed to maintain a certain level of operations even during the partial lockdown.

 

Indonesia

Restriction policies on traveling, logistics and business operation:

Indonesia will temporarily ban domestic air and sea travel until early June to stop non-essential travel during the month of Ramadan. Jakarta’s government announced that the coronavirus-related social restrictions in the city will remain in place until May 22nd.

Financial and trading policies:

The government has set aside 436.1 trillion rupiah (S$37.6 billion), equivalent to 2.5 percent of the country’s gross domestic income for stimulus packages that are focused on healthcare spending, social protection and economic recovery.

The government has enacted measures to safeguard social aid and food supplies to prevent social unrest as the pandemic has had a severe impact on both workers and households.

 

Thailand

Restriction policies on traveling, logistics and business operation:

The government in Thailand is gradually easing its restrictions as daily new infections fell to single digits over the past week. The authorities have said more businesses could start to reopen every two weeks.

Financial and trading policies:

The government allowed some businesses and public parks to reopen from May 3rd. Alongside resumed alcohol sales.

The country plans to fully reopen its economy in four phases and the businesses that reopen must meet tough new safety guidelines to prevent a further spread of the coronavirus.

Easing the restrictions did not include tourist attractions, with the government deciding to extend a ban on inbound international flights until May 31st.

 

Pakistan

Restriction policies on traveling, logistics, and business operations

The lockdown in Pakistan ended on 30th April. Last Saturday, Prime Minister Imran Khan said the country cannot sustain a prolonged lockdown as labourers and the daily wagers are suffering heavily due to closure of all industries and businesses. Around 18 million people could lose their jobs due to the ongoing lockdown, which has been enforced to prevent the spread of the coronavirus.

Financial and trading policies

On Tuesday, Pakistan approved an Rs 700 crore special relief package for labourers to help them face the economic fallout.

The United States has contributed 8 million dollars by collaborating with the Government of Pakistan to help stop the spread of coronavirus nationwide and to care for virus infected people.

 

HQTS Highlights

Throughout the epidemic HQTS continues to provide a great service to all of our customers. We provide a free QC service related to any epidemic prevention materials purchased by governments or charity non-profit organisations across the world.

During the continued spread of the virus, there is a shortage of medical protective materials around the world. HQTS has sent free face masks to our overseas customers and we launched our first online charity sale. We raised 1,815 RMB to help any students from HQTS Purchase Order Class. This money will be used as their daily subsistence allowances and this is why our clients respect and trust us as a company.

Although we have experienced some hardships and difficulties over this period, HQTS believes that by working together, we will overcome it and have a bright future.

 

About HQTS

With over 25 years of experience in quality assurance, HQTS is ready to help your business build meaningful and robust supplier relationships across Asia. Our many service locations are prepared to be your one-stop-shop for your inspection needs, including factory audits, production monitoring, pre-shipment and sorting inspections, and everything in between. This will allow you to know exactly what’s happening on the ground and keep close tabs on your suppliers. Contact us today to find out how we can help you navigate current quality control challenges.

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