Vietnam Exporters Become The Victims Of Nasty Tricks In Foreign Markets

VietNamNet Bridge – Export companies have complained that the situation has become increasingly strained towards the end of the year. Importers would be ready to play nasty tricks to control the import prices.

Too many kinds of tricks to play

It is now more difficult than ever to export products. Exporters not only have to move heaven and earth to borrow capital, arrange material import deals, but also think about how to deal with the tricks played by importers to disturb the export.

Nguyen Van Dao, General Director of Go Dang Company, related that importers would send small groups of merchants to material growing areas to listen to the news and explore the market prices. However, the merchants would not sign contracts with farmers.

Informing that they need materials in big quantities, they would ask for price discounts. Meanwhile, many Vietnamese enterprises, which wanted to sell products as soon as possible to get money to pay bank debts, would accept the sale at low prices.

Too many kinds of tricks to play

The problem is that the low prices accepted by some enterprises would be cited by the importers as the benchmark prices of the market to force the export prices down. As a result, the export prices of Vietnamese rice, cashew nuts and catfish all have seen the prices decreasing significantly.

Another trick that importers like playing–is spreading false information to drive the market as they want. Nguyen Van Don, Director of Viet Hung Chieu Company, said that foreign companies usually threaten to stop importing goods from Vietnam, but they later still import the products.

The aim of the importers is force the farm produce prices down and return to the market later to buy products when the prices go down.

Most recently, loyal rice import markets unexpectedly informed that they would not import rice more since the domestic consumption can satisfy the demand already. However, just one month later, Indonesian importers have come back to order 300,000 tons of rice.

Especially, some big Indonesian importers have set up offices in Cambodia, so that they can enjoy tax preferences as Cambodian businessmen.

“They buy farm produce in Vietnam and carry to Cambodia across the border, where they process and pack the products for re-exporting to Indonesia,” he said.

This explains why rice has been flowing to Cambodia recently in big quantities, while loyal markets have stated they have arranged enough rice, thus leading to the sharp falls of farm produce exports through official channels, causing the State failing to collect debts from the exports.

Foreign importers would annul the import contracts, if the market prices at the delivery time go down to the levels lower than the prices at the time the contracts were signed before.

Le Chi Hung, General Director of Hop Long Company, said that the importer tried everything to force the prices down by refusing to receive goods, reasoning the low quality, or delay payment.

“We once had to send our staff to the Netherlands to clear products from the port to avoid the high storage fee. The products were then put into a bonded warehouse for sale later,” Hung said.

Vietnamese exporters not only have to watch out for the tricks to be played by foreign importers, but also have to keep cautious when doing business with Vietnamese enterprises.

A lot of seafood exporters reportedly offered very low export prices to scramble for export contracts. This gave foreign importers one more reason to force other enterprises to accept low prices as well.


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