Vietnam’s Ministry of Industry and Trade is intervening to resolve the congestion affecting nearly 500 containers of Vietnamese tea exports stuck at Karachi Port in Pakistan, seeking to minimize financial losses for exporters and protect the livelihoods of tea farmers.
Tea Exports Disrupted by Pakistan Transit Issues
The Ministry of Industry and Trade (MoIT) took action following an urgent request from the Vietnam Tea Association and affected businesses, mobilizing relevant agencies to determine the causes of the backlog and propose solutions. Reports from the Vietnam Trade Office and Embassy in Pakistan indicate the congestion stems from a breakdown in road transport between Pakistan and Afghanistan, caused by Pakistan’s tightened transit control measures.
Most of the Vietnamese tea was contracted for export to Afghanistan, utilizing Karachi Port as a transit hub. However, the port congestion is not limited to Vietnamese shipments, impacting Pakistan’s own import and export activities, as well as those of other countries relying on the port for transit.
As of the latest reports, Karachi Port is handling approximately 11,000 containers destined for Afghanistan, alongside 25,000 import containers and 15,000 export containers awaiting clearance. A nationwide strike by Pakistan’s trucking associations, protesting new enforcement policies, has further exacerbated the gridlock, bringing the domestic supply chain to a near standstill.
Financial Impact on Vietnamese Businesses
The prolonged delay is generating substantial storage and demurrage costs for Vietnamese businesses, increasing the risk of product deterioration and negatively impacting cash flow, bank loan repayments, and the income of tea farmers. To protect Vietnamese exporters, the MoIT has instructed the Vietnam Trade Office in Pakistan to collaborate with local authorities – including port and customs officials – to secure special handling for the stranded tea shipments.
The Vietnamese Embassy in Pakistan, in coordination with the Ministry of Foreign Affairs, has issued diplomatic notes requesting flexible and favorable treatment for the Vietnamese tea containers, emphasizing economic cooperation and bilateral relations. Direct meetings have also been held with senior officials from the Pakistan Ministry of Commerce, including the Deputy Minister in charge of Afghanistan and Central Asia, to advocate for non-restrictive handling of Vietnamese goods and exceptions to the transit suspension.
Vietnam has proposed the resumption of transit to Afghanistan once security and logistics conditions improve. Alternatively, Vietnam has requested permission to re-export the goods to third markets or, as a last resort, re-import the containers to Vietnam to mitigate financial damage.
Ongoing Monitoring and Future Strategies
The Ministry of Industry and Trade is closely monitoring the situation, receiving daily updates from the Vietnam Trade Office, and working to identify feasible solutions. Exporters have been urged to collaborate with the Tea Association and the Vietnam Trade Office, providing complete shipment documentation.
Companies are also encouraged to review contract clauses, explore alternative logistics options, and assess their financial resilience. The MoIT advises exporters to enhance market risk assessments, diversify transport routes, and renegotiate delivery terms to reduce reliance on high-risk transit corridors.
Supporting Vietnamese exports, particularly strategic agricultural goods like tea, remains a priority. The MoIT will continue to engage with stakeholders to expedite clearance and minimize losses for businesses and farmers.
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