Vietnam: Thirsty for capital, export companies miserable

« We are facing our greatest-ever difficulty in accessing capital,” stated Intimex General Director Do Ha Nam, whose opinion is shared by most export companies at the export forum held on March 11. Deputy Minister of Industry and Trade Nguyen Thanh Bien, who attended the forum, also confirmed that the biggest obstacle for export companies is the lack of capital.

Cashew nut exporters also face difficulties. While the export price is low, collection is very high at $1100-1150 per ton. With such prices, Nam explained, Vietnamese enterprises have, in essence, become salaried workers for foreign partners. Production costs have also increased by 20 percent in comparison with the same period of 2009.

Nam observed that, while domestic companies do not have capital to collect domestic materials, foreign enterprises have jumped to collect materials in Vietnam’s home market.  Due to the lack of capital, many enterprises have lost lucrative contracts to foreign companies.

Settling difficulties

Bien from the Ministry of Industry and Trade said that they have joined forces with the Ministry of Agriculture and Rural Development to develop policies to help consume farm produce and seafood products which aim to ensure the food security and help increase income of farmers.

The Government has extended the interest rate subsidy program for medium and long-term loans until the end of 2010 and also agreed to extend corporation income tax payments for three months for small and medium enterprises.

However, businesses maintain that not every complaint can be addressed. Giang has urged the Vietnam Development Bank to make disbursements soon and allocate the 2000 billion dong loan funds to cashew enterprises so that they can collect materials from March to July 2010.

Giang has also asked the bank to reserve preferential loans worth 1500 billion dong in order to help enterprises to upgrade workshops and invest in new processing equipment.

Source: english.vietnamnet.vn