HCMC – Exporters joining an online conference organized by the Ministry of Industry and Trade on Tuesday worried that their performance in this year’s second half would remain difficult given the dismal global economic outlook.
Exporters fret over markets in 2nd half amid global gloom
Hawa seeks customs clearance for furniture stuck at Cat Lai port
By Tran Thu and Thai Hang - The Saigon Times Daily
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| A container ship is seen exiting HCMC. Exporters are worried about their performance in this year’s second half due to the dismal global economic outlook - Photo: Pham Vu |
HCMC – Exporters joining an online conference organized by the Ministry of Industry and Trade on Tuesday worried that their performance in this year’s second half would remain difficult given the dismal global economic outlook.
Traders said they had never encountered huge challenges like in this year’s first half, but added the second half might pose greater difficulties.
Multiple challenges ahead
Le Phuoc Vu, chairman of Hoa Sen Group and vice chairman of the Vietnam Steel Association, remarked Brazil, India and China were seeing their growth rates falling, while Japan, European and the U.S. showed no optimistic signs.
Therefore, he predicted Vietnam’s steel export would likely decline and the situation would get tougher.
Deputy Minister of Industry and Trade Nguyen Thanh Bien said the biggest difficulty in the first six months was outlets. In particular, the purchasing power of several markets considerably weakened, resulting in fewer long-term orders for many exporters.
“Previously, enterprises received orders six months, or even one year in advance, but now few enterprises have long-term orders, mostly 2-3 months or even one month,” said Bien.
Mai Thi Anh Tuyet, deputy director of the An Giang Department of Industry and Trade, said the province exported only 214,000 tons of rice, equal to 79% of the year-ago figure, meeting 40% of the target. Therefore, An Giang’s authority is now very worried, as export makes great contribution to the provincial GDP.
Diversifying products and credit sources
To reduce the dependence on rice and tra fish, whose prices have dropped sharply, An Giang Province is gradually switching to other crops.
Particularly, the cooperation program between An Giang and Saigon Trading Group (Satra) to grow the vegetable okra for export was launched in May 2012.
Pilot cultivation is carried out on 16 hectares, which will be expanded to 50 hectares by the year’s end and 100 hectares in 2013. Satra directly exports this item to Japan.
An Giang also joins hands with another enterprise to make a plan for exporting mushrooms to Hong Kong. Tuyet said the enterprise would look into the market demand to order farmers to produce.
In addition to product and market diversification, businesses are seeking ways to boost labor capacity and access credit capital with reasonable lending rates.
Do Ha Nam, chairman of the Vietnam Pepper Association, suggested the Government should encourage enterprises to establish companies abroad and borrow from foreign lenders to diversify capital sources.
* Dien Quang Hiep, director of Mifaco Company, member of the executive board of the Handicraft and Wood Industry Association of HCMC (Hawa), said on the sidelines of the conference that Hawa had petitioned the HCMC Department of Customs to help the furniture export shipments denied for custom clearance at Cat Lai port.
Hiep informed some 11 enterprises had reported their shipments were disallowed to go through customs under Circular 01 the Ministry of Agriculture and Rural Development.
“We are awaiting statistics to calculate the accurate losses. But I think the biggest loss is delivery schedule. Enterprises have committed to deliver products on time, or else they would pay penalties, not to mention a loss of prestige,” Hiep stressed.
Last week, Cat Lai port customs announced it would not clear furniture shipments that lacked forest product lists certified by forest rangers.