So many difficulties
Deputy minister of Ministry of Industry and Commerce Nguyen Thanh Bien opened the meeting by quoting the action of the government of applying flexible rate and widen the range of the rate to +/-5% with the aim supporting enterprises to overcome difficulties.
However, when GDP, domestic trade, industrial manufacture increase, the export situation is not very bright, especially the decrease in turnover of export oil with 53% decrease and we lose 5.5 billion USD as expected. The next are agriculture, forestry and seafood. Though, they increase in terms of volume, the price decreases 8.8%.
Specifically, two main products such as pangasius and shrimp increase export compared to the last year but the price still decrease.
Some products increase to control the market such as pepper, coffee but speculation causes decreased price which brings great difficulties for enterprises and farmers.
Besides that, export agriculture depends strongly Chinese market when most products export to this market decrease in terms of volume and export value. Cassava is the only product exported to Chinese that increase in terms of volume as well as volume but just about 400 million USD.
Mr Bien considers that competition in the rest 5 months of the year is harsher when the economics of countries in Asia- Pacific area recover sooner than expected, especially China.
Technical barriers are formed such as Farm Bill of America, safety for consumers Bill of America, standards set by EU about chemicals and chemical safety, source of catching seafood, environmental and natural protection… are challenges for Vietnamese products to these markets. Meanwhile, the responsibility in the rest 5 months of the year is reaching nearly 30 billion USD that means nearly 6 billion USD/month which is 1 billion higher than the average expectation/month.
Beside that, worries of export enterprises especially enterprises in the South (represent ¾ export of the whole country) also depend on the way of entering the port, Mr Bien said.
Mr Huynh Van Minh, president of Ho Chi Minh city association of enterprises considers that the result of export in the first 7 months of the year still has many risk when the general difficulties have not stopped. New markets as Russia and Poland… really needs orders but due to the way of paying, Vietnamese products have not come there yet. If the government of the two countries have agreement, enterprises can be easy to cooperate.
Mr Truong Dinh Hoe, president of Vasep said that in great effort, the sector can only reach 4-4.2 billion USD and cannot reach 6 billion as expected. Currently, giant tiger shrimps which are exported strongly to
USA have to compete with that of Thailand. Meanwhile, the EU market can just import 1.5 billion USD when countries of import large seafood as Italia, Holland decrease import again.
Japan, in recent months, has also been very strict in food safety and antibiotic…and 100% seafood have to be checked before being imported. Meanwhile, pangasius cannot enter this market. Russian market also cannot “save” seafood in the rest months though it has opened.
The advantages are not few either
According to Mr Truong Dinh Tuyen, former minister of the ministry of Commerce (the current Ministry of Industry and Commerce) says that the development rate of 3% in this year is very difficult to reach. However, the situation in the rest 5 months of the year is better than the first 7 months and we have to make use of this advantage.
Agreement on whole cooperation between ASEAN-Japan has been passed and it will come to force in October. This is the chance for Vietnam weaving industry and seafood to enter this market, 90% products will be decreased tax.
Deputy minister of Ministry of Industry and Commerce Nguyen Thanh Bien said that
Vietnam has gone through the most difficult stage of export when the turnover of the next months is higher than the previous one, demand and order increase… Thus, advantages in the rest 5 months of the year is not few either.
In order to share difficulties of enterprises, the ministry of Industry and Commerce has announced that it will propose to decrease 20% electricity cost in rush hours for enterprises to the Prime Minister and it is waiting to be approved.
Focusing on near maket, traditional markets especially Cambodia which has the development of 44% in the first 5 months is among the solutions that the city leads to. Ms Nguyen Thi Hong, vice president of Ho Chi Minh people’s committee says, the city is discussing with Tay Ninh and An Giang province for enterprises of Ho Chi Minh city to build warehouse across the border and in Phnom Penh (Cambodia) to support enterprises to approach this market. |
