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Lang Son, the paradise of China-made products
VietNamNet Bridge provides more stories with more detailed information about the so called “Chinese junk storm.” The following describes the cross-border markets of China-made products in Lang Son province.
Lang Son province these days is being flooded with made-in-China products. Being one of the main gateways to Vietnam, it is understandable why China’s products are gathering in the province and in the last days of the year.
More than 1,000 tonnes of commodities a day
At 9:00am one day in early December 2008, it was freezing cold in Lang Son province. The road from the Tan Thanh border gate to Lang Son City was wet with dew. Groups of Minsk motorbikes and self-modified trucks were seen driving very fast, carrying overloaded bales of goods, despite the slope and bendy roads.
Standing at the branching roads to the Coc Nam border gate in Van Lang district for just 15 minutes, reporters saw 30 motorbikes and more than ten self-modified trucks carrying goods from the Tan Thanh border gate to Lang Son City.
A woman at the tea shop a long the road related that the number of vehicles carrying Chinese commodities seem to be lower these days, as an anti-smuggling taskforce has been strengthening inspections. She said that previously, the groups of vehicles ran on the road from the first gleam of daylight to complete darkness.
10:00am, the Tan Thanh border gate. Groups of trucks were seen, following one another, going slowly towards the border gate across to China. Nguyen Truong Hung, Deputy Head of the Tan Thanh Border Gate Customs Sub-department, said that the number of vehicles going to China to take commodities has increased from 250 to 350 a day since late November. It is expected that the number will rise to 500 a day.
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According to the Lang Son Customs Agency, by the end of November 2008, the cross-border import-export turnover had reached almost US $1.5 billion (up by 59.3 over the same period of 2007), while the import turnover had reportedly reached over US $1.1 billion (+ 67.1%).
According to Vy Cong Tuong, Deputy Head of the Lang Son Customs Agency, it is expected that more Chinese products will pour into Vietnam as a result of the economic recession. The costs to bring commodities to Vietnam proves to be much lower than the costs to bring commodities to the US and EU.
“As Chinese producers cannot bring commodities to the US and EU, they will bring them to Vietnam,” Tuong said. |
Hung said that Tan Thanh border gate specializes in farm produce exports and imports. The exports include blue dragon, longan, litchis, and mangoes, while imports consist of apples, pears, peaches, carrots, potatoes, and other vegetables.
From January 1 to November 30, the Tan Thanh customs agency fulfilled the procedures allowing importing of nearly 370,000 tonnes of commodities (over 1,000 tonnes a day). If counting on the large volume of commodities local residents in border areas has brought to Vietnam (under the current regulations, every local resident can purchase VND 2 million worth of products every day without having to pay tax).
Everything available
At the markets around the Tan Thanh border gate, Chinese-made commodities, after landing in Vietnamese land, were displayed in abundance on shelves and pavements as well. The Dong Kinh and Ky Lua markets were also full of Chinese products. Every item on display at the markets were sourced from China, from the small sewing needles, to reels of thread, to children’s footwear, clothes, phone sets, plastics products, medicine, and electronic products.
The prices of Chinese-made products are always much lower than the prices of the same products made in Vietnam. A pair of jeans for men was sold at VND 80,000, while an overcoat sold for VND 150,000, though salesmen initially might ask for VND 400,000-500,000. An LCD TV, between 29-32 inches, was sold at VND 4.5-5 million.
The owner of an electronics shop at the Tan Thanh market said that if customers have ‘special orders’ like an electric bludgeon, firecrackers and aphrodisiac medicine or toys, he can provide all these after 30 minutes of waiting.
More and more commodities flocking
Tet will only arrive in two months, but Dung, the owner of a consumer stop at the Dong Kinh market, related that he had to go to China to place orders on products for Tet sales, which will be carried to Vietnam in a few days.
Dung said that the biggest number of customers will be seen in three or four weeks, by that time, Dung and his family’s members will be busy from morning to evening. He also said that the capital he has to arrange to purchase commodities for the Tet sale is at least three or four times higher than the capital he spends every month before.
Regarding the kinds of products, dealers at the markets all said that they have not seen anything special.
At the Coc Nam border gate, Hoang Van Quan, Deputy Head of the Customs agency, said that the volume of commodities going through the Coc Nam border gate always increases by 50% over normal days. However, these are the commodities going officially through the border gate with customs declarations. Quan said that other large volumes of commodities were being carried to Vietnam on trails in order to avoid being taxed.
Phung Quang Hoi, Head of the Coc Nam Customs Agency, said that under the current regulations, every local resident can purchase VND 2 million worth of products a day. Therefore, thousands of local residents have become the porters who carry commodities for dealers.
Tuoi tre, vietnamnet
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