Vietnamese exporters are seeking positive movements of the government to help them overcome a series of difficulties such as U.S. dollar devaluation and high lending interest rates, local media reported recently.
Local exporters admitted at a conference on tackling exporters' difficulties held March 13 by the Ministry of Industry and Trade (MoIT) that the government's measure of raising dong/dollar rate to curb inflation has partly reduced their revenues and is likely to result in losses.
Apart from exporting raw materials like agro-forestry products, fuel and minerals, which account for 50 per cent of Vietnam's total export value, have attained high value due to increasing prices, the rest of Vietnam's exports are at risk of losses because of US dollar devaluation, said Bui Xuan Khu, Vice Deputy Minister of MoIT.
The export value of garment and textile industry, one of Vietnam’s key forex earners, has not been affected by the greenback devaluation in the first quarter, but will face in the second quarter driven by both US dollar devaluation and growing costs, said Le Quoc An, chairman of the Vietnam Textile and Apparel Association (Vitas).
Dong's revaluation has also increased exporters' spending on importing input materials, An added.
Local exporters are facing troubles with the banks, which are not providing additional loans and are limiting their purchase of dollars. The banks are buying dollars at lower prices and some charge a 2 per cent fee.
To address the situation, exporters proposed the government, relevant ministries and agencies take urgent measures like streamlining preferential lending procedures for export contracts, reducing lending interest rates, controlling inflation, and buying all foreign currencies from exporters at exchange rates fixed by the central bank.
At the meeting, Mr. Khu proposed some urgent measures to help local exporters, including asking the State Bank of Vietnam (SBV) to adjust US dollar/VND trading band, instructing commercial banks to offer loans at preferential rates, recommending the government to raise spending for trade promotion and set up export insurance fund and assign contractors of key national projects to ensure quality, value and implementation process.
This year, the country sets a target to obtain export value of US$58 billion-US$59 billion, up 20 per cent-22 per cent on year and spend about US$75 billion on imports, up 25.89 per cent. (Local sources)
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