The novel Covid-19, has drastically affected the lives of many. While the human aspect of this outbreak is fundamental, one cannot ignore the cascading economic impact of the outbreak on the global markets.
The outbreak has paralyzed the supply chain, logistics and contingency plans of businesses globally. Several airlines have cancelled all flights and travel bans have been imposed by many countries impacting trade and mobility. Whilst, closed-off ports and delayed shipments are severely impacting trading partners, businesses in China went through a testing period caused by the difficulties caused by the overwhelming volume of regulations published by all levels of administrative organs. Affected by lockdowns and quarantines, businesses faced obstacles to resume production and meet the demands of its global trading partners. Many suppliers turned to the force majeure clauses incorporated in their contracts to delay or even cancel their contractual obligations.
Vietnam is still in the primary stage of the outburst, but recent conditions are severely affecting companies’ daily activities. Following the Chinese experience, businesses operating in Vietnam, and other countries of the world, can learn from the strategy implemented and face the impact of the safety measures affecting global markets.”