The wicked tricks by Chinese businessmen (part 2)

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VietnamNet English - 38 month(s) ago 4 readings

The wicked tricks by Chinese businessmen (part 2)

VietNamNet Bridge – Not only trying to collect “strange” items to ravage the Vietnamese national economy, Chinese businessmen also like using a trick to push Vietnamese farmers against the wall: they advertise large-scale collection campaigns, but then force the purchase prices down or refuse to purchase products.

The wicked tricks by Chinese businessmen

Recalling the dog collection campaign in 1991 launched by Chinese businessmen, Nguyen Bao Sinh, who was once called the “cat and dog king” in Hanoi, said that he knows a family, which lost of its money because they could not sell the dogs to Chinese businessmen.

At that time, Vietnamese people rushed to breed dogs to sell to Chinese businessmen at high prices. At first, the businessmen came to every corner of cities and rural areas to seek to purchase dogs at high prices.

When the movement of breeding dogs reached the highest peak, Chinese businessmen marketed different dog breeders and Vietnamese people rushed to purchase the breeders, even though the prices were five times higher than the prices of dogs they sold before, hoping to sell later back to the Chinese businessmen.

However, the dog market suddenly became quiet, and no Chinese dog buyer appeared any more.

Thuan, a local resident in Truong Dinh ward in Hanoi, who witnessed the dog breeding movement, said that while Chinese were united to purchase and cheat Vietnamese people, Vietnamese people only followed the principle “every man for himself”, which made them suffer.

In 2001-2002, farmers in the 10 northern provinces of Vietnam bubbled over with joy when hearing that Chinese businessmen were collecting longan at high prices of 14,000-180,000 dong per kilo. However, when farmers gathered enough longan as required by Chinese businessmen, the prices unexpectedly dropped to 40,000-60,000 dong per kilo.

In 2004, the longan prices dropped to 10,000-12,000 dong per kilo. The farmers, who purchased longan at the beginning of the crop at 10,000-15,000 dong per kilo, turned to be unprofitable, because the dried longan price became equal to fresh products.

Also in 2004, Chinese businessmen advertised that they need to purchase water melon at 7000-10,000 dong per kilo. Farmers in the central region, especially in Quang Ngai province, rushed to grow water melon. However, in April 2005, Chinese businessmen suddenly stopped collecting water melon from Vietnam.

As a result, hundreds of trucks carrying water melon got stuck at the Lang Son border gate because they cannot enter China. A lot of goods owners had to flee after throwing hundreds of tons of water melon in the border area.

In 2007-2008, Vietnamese whispered in each others’ ears that Chinese were collecting dried areca at 80,000 dong per kilo. Farmers calculated that if they bought five kilos of fresh areca, they would get one kilo of dried areca, which could bring satisfactory profits. Therefore, they focused on making dried areca to sell to Chinese. However, the prices have been decreasing gradually, while Chinese have stopped purchasing areca.

In October 2010, people on the mountainous areas in Kien Giang province heard that Chinese businessmen sought to purchase gecko. The rumor resulted in the fact that hundreds of thousands of geckos were hunted for sale, but the sale prices were very low.

In recent days, Chinese businessmen have been flocking to Vietnam to collect farm produce, from cassava, pepper, coffee, to pigs, seafood materials.

A Vietnamese merchant, who specializes in exporting water melon to China, has revealed that Chinese businessmen have been cooperating with each other well and they will unanimously force the prices down when they can see many Vietnamese suppliers at the border gates. Meanwhile, Vietnamese merchants remain divided and regularly suffer disadvantages in the trade deals.

Dr Vu Dinh Anh, a well known economist in Vietnam, has warned that the Chinese businessmen’s collection of farm produce will create to the supply and demand imbalance. Once the supply of farm produce becomes short, this will push the prices of food and foodstuff in Vietnam up. If so, Vietnam would be unable to curb the inflation.

Source: VTC

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