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Rising costs cause City enterprises to miss export targets
Many enterprises in HCM City expect to fail to reach their export targets for the first quarter of this year, due to the increasing costs of imported materials, petrol and electricity.
According to HCM City's Industry and Trade Department, exporters are set for a tough time in the coming months, due to the lingering impacts of the global economic crisis that have made it difficult for exporters to hit their targets in this climate, said the department.
Electricity hungry enterprises in the garment sector faced many difficulties in production and business during the first quarter, due to an increase in the price of electricity, said Phung Dinh Ngo, director of the Binh Hoa Garment Joint Stock Company.
On top of this, the company lacked skilled workers and could not fulfil some of its contracts, he said.
The company is expected to reach 60-70 per cent of its export target for the first quarter of the year, Ngo said.
The Binh Hoa Company does not have enough capital or workshops to keep materials in stock so it has to spend a lot on transportation because of the high petrol price, he said.
Dien Quang Hiep, Director of the Minh Phat 2 Company, said domestic prices had increased and it was proving difficult to get importers to agree to higher prices.
Most exporters in HCM City said beside trade promotion programmes, the State should stabilise the exchange rate between the Vietnamese dong and the US dollar to help them overcome current obstacles and calculate production costs as well as build long-term export plans.
vietnamnews
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