Director of Tien Giang-based Song Tien Seafood Company Nguyen Thi Anh is like a cat on hot bricks as the dollar value keeps decreasing, while the tra export price does not. Her company signed contracts with foreign partners in dollars; therefore, the VND revaluation means that Song Tien loses big money.

Ho Quoc Luc, General Director of Sao Ta Seafood Company, said that the dollar devaluation has brought about the loss of VND60mil on just a small order worth $200,000.

The Vietnam Association of Seafood Exporters and Producers (VASEP) has recently sent a petition to ministries asking for help, otherwise, seafood processors will go bankrupt.

Automobile assemblers are also complaining that they are suffering big losses due to the sharp dollar price decrease. Just several months ago, they were happy as cars were selling like hot cakes. However, the situation is quite different now. As car producers set sale prices in dollars, they are losing a lot of money with the dollar devaluating. On a car that has the price of $45-55,000, sellers are losing VND30-40mil per unit.

Rice exporters have been incurring heavy losses with export contracts. The director of a rice export company related that in early January 2008 his company signed a contract to export 25% broken rice to the Philippines at $365/tonne. At that time, the paddy price was VND3,600/kg, while a dollar could be sold to banks at VND15,890/US$1. However, the paddy price has soared to VND4,500-4,600/kg now, while banks are buying dollars for only VND15,580/US$1.

“We have lost VND11bil on a consignment of 10,000 tonnes of rice, including VND1bil loss due to the dollar devaluation, and VND10bil due to the higher input material prices,” he said.

Pham Xuan Hong, Deputy Chairman of the HCM City Textile-Garments and Apparels Association: Exporters have to raise export prices for coming orders

As the dollar price keeps falling and exporters cannot convert dollars into VND, many apparel producers dare not sign new contracts. The producers are considering raising the export prices for coming orders. However, it is not so easy to persuade their partners to accept higher prices.

Nguyen Chien Thang, Chairman of the HCM City Woodwork and Fine Arts Association

As the dollar value keeps sliding, woodwork exporters are suffering. Our members are trying to negotiate with partners to raise export prices by 15% to retain the previous profit levels. Meanwhile, enterprises also have to cut expenses and seek cheaper material sources.

Phan Van Danh, Chairman of the An Giang Seafood Association:

As seafood processors are incurring losses due to material price increases and the dollar devaluation, they have been limiting purchasing fish materials from farmers. In An Giang alone, 50-70,000 tonnes of fish have been left unsold, even with very low prices of VND14-14,200/kg.

Source: Lao dong