Vietnamese exporters of seafood and farm produce have complained about the devaluation of dollar that caused huge losses to them despite high export prices.
The consecutive decreases of exchange rate between Vietnam dong and U.S. dollar and increased interest rates pushing up production cost are major reasons for the losses, local exporters said.
Worse, many local banks denied buying U.S. dollar while Vietnamese exporters, who received mostly dollar, needed Vietnam dong to pay for materials.
Nguyen Thai Hoc, vice chairman of Vietnam Cashew Association (Vinacas) said local cashew companies have signed contracts totaling US$300 million, but they are estimated to lose VND150 billion-VND160 billion due to U.S. dollar devaluation.
Do Ha Nam, chairman of Vietnam Pepper Association (VPA) cum vice chairman of Vietnam Cocoa and Coffee Association (Vicofa) said coffee exporters lose around VND300 million - VND400 million if they export more than US$1 million worth of product.
“Exporting more than 1,000 tons of coffee, Vietnamese companies lose around VND500 million or VND1 billion,” Nam noted.
General Secretary of the Vietnam Association of Seafood Exporters and Producers (Vasep), Truong Dinh Hoe, predicted that seafood export revenues in March will decrease to only US$100 million, much lower than the revenues of US$250 million gained from previous months.
He said local exporters and farmers are being hard hit. “Even though companies do not have money to buy fish as materials, the farmers still want to sell off their fish, despite cheap prices, since they cannot borrow dong from the banks to feed their fish because of high lending rates,” he added.
Nam noted that Vietnamese exporters have got stuck in the miserable situation, adding that if the companies continue exporting, they will lose, if not, they will be sued for breaking contract.
The associations have recently sent proposals to the Ministry of Agriculture and Rural Development and to the State Bank asking for urgent measures to solve the problem.
Vietnam early this year set target to earn $14 billion from exports of agro, forestry and seafood products in 2008. (Vietnam Agriculture, Vasep)
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