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Businesses “live from hand to mouth”, expecting orders for 2012
These days prove to be the busiest days for businessmen in the year, not because they have to spend time to manage the production, but because they have to move heaven and earth to get more jobs to earn more money.
Seafood companies are reportedly facing big difficulties, including the material shortage, the input material price increases. Meanwhile, they fail to negotiate with foreign importers on raising the sale prices. Some of the companies have revealed that big export markets have cut down the orders in the second biggest production season of the year.
A representative of the HCM City based Vinh Hoan Seafood Company said that a lot of companies have complained about the big inventory volume of frozen products. Some of them have stopped exporting products to the Europe because orders come in dribs and drabs. Some Europeans have returned to place orders, but they only pay low prices. Companies have refused the orders because the tra fish prices have been increasing, which will make them incur loss if accepting the orders.
Enterprises now do not have much time ahead to fulfill the 2011’s business plan. Businesses have got impatient when seeing the sales decreasing dramatically. While understanding that they do not have many more opportunities, they still have been trying their best.
Sweets manufacturers have seen the sales increasing by 5-10 times in the last months of the year in comparison with ordinary days. However, the manufacturers say they dare not store materials in big quantities.
Phan Van Thien, Deputy General Director of Bibica, said that the company is very cautious when planning the year end production. Bibica has just signed the contracts on fixing the prices with the suppliers, while it still unclear about the deliveries.
Nguyen Danh Hung, Director of Tien Phuong Production and Trade Company in Hanoi, said that his company is gearing up to fulfill the orders. However, Hung said the demand remains very weak, the input material prices have increased all have put a heavy burden on his business. Therefore, Hung puts high hopes on the orders for 2012.
Tan Tan Trade and Food Processing Company, which specializes in making peanuts, has been “living from hand to mouth” since mid 2011, because of the lack of orders.
A representative of the company said that by that time of the previous years, the company had got enough orders for the production until the end of the first quarter of the next years. However, things are quite different this year, and managers of the company are still moving heaven and earth to seek orders.
“In previous years, clients placed orders 5-6 months in advance. However, they do not contact manufacturers soon this year, because they cannot anticipate the purchasing power. Manufacturers also do not want to accept orders soon because they fear the material prices would get more expensive.” said Hung.
He also complained that since the bank lending interest rates have increased dramatically, businesses need to consider their business plans thoroughly, or they will incur losses.
Tran Van Hung, Chair of Visimex Import-Export Company, also said that by that time of the previous years, he had fixed most of the orders for the next years. Meanwhile, the orders he has now is just enough for the production until the end of the first quarter of 2012.
“I am afraid that the difficulties would continue in 2012, when the US and EU economies still cannot prosper,” Hung said, adding that businessmen would have to struggle to look for new clients.
Phan Van Chinh, Director of the Import-Export Department of the Ministry of Industry and Trade, has warned that difficulties still exist because Europe has suffered from the public debt crisis.
According to the Hanoi Importers and Exporters Club, big difficulties would still hinder the development of wooden furniture, fine arts and footwear enterprises.
Hong Le
vietnamnet
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