Coconut pulp processing plants are currently facing an acute shortage of raw material for processing, even though they are buying the raw material at a higher price in the Mekong Delta.
They are presently only operating at 20-40 percent of their capacity, leading to many unfulfilled contracts and much unemployment amongst workers.
Coconut prices have doubled since the same period last year. Traders in provinces like Ben Tre and Tra Vinh have paid VND100,000 -110,000 for a dozen coconuts.
According to the Department of Industry and Trade in Ben Tre Province, raw coconuts are being exported to China, Thailand and Cambodia leading to a shortfall of raw material for domestic companies.
The Ministry of Finance has recently decided to raise the export tariff on raw coconuts to three percent, which will take effect from May 20.