Friday, 25/05/2012 14:39

Coffee business’ bitter after taste

A dearth of international trade experience is pushing local coffee firms into the corner.

Pham Khanh Hiep, a senior coffee expert, said Vietnamese coffee often incurred disadvantages during transactions in London and New York coffee trading floors since local exporters could not grasp trading rules.

Luong Van Tu, Vietnam Coffee-Cocoa Association (Vicofa) chairman, said many exporters did not opt for legal advice when signing export contracts or resolving disputes and they need to redress this situation.

To limit risks when making transactions with futures contracts, Vicofa secretary Nguyen Viet Vinh suggested firms get support from legal and international trade experts.

“Establishing model contracts and doing trade as per international practices are urgent needs for Vietnam’s coffee industry,” Vinh said.

Cafecontrol general director Nguyen Nam Hai said Vietnamese firms had made their mark in the global market.

For instance, Intimex Ho Chi Minh City or Dak Lak-based Simexco made deals directly with world coffee roasting and grinding companies without going through intermediaries. These firms, therefore, could sell products at good rates and are less dependent on market situations.

“But, not many firms do so. Most are doing futures contracts which are risky,” said Hai.

Simexco director Le Duc Thong said prestige was important to directly sell products to world coffee roasting and grinding firms.

Through selling directly to foreign coffee firms, Simexco earns $50-100 per tonne of export coffee more compared to exporting through middlemen and takes the initiative in output market.

Meanwhile scores of firms, doing transactions with futures contracts via middlemen, face going bust due to strong market fluctuations, said Thong.

vietnamnews

Other News

>   Support industry has development potential (25/05/2012)

>   Vietnam gives away the best coal mine to foreigners (25/05/2012)

>   Labor union dues burden businesses (25/05/2012)

>   More foreign invested electronics projects to kick off in Vietnam (25/05/2012)

>   Firms urged to target TPP (24/05/2012)

>   Trade deficit surges in first five months (24/05/2012)

>   Cashew processors import nuts (24/05/2012)

>   Preferential loans for agricultural production target wrong subjects (24/05/2012)

>   Businesses want self-determination on wages (24/05/2012)

>   Retailers fear deflation (24/05/2012)

Online Services
iDragon
Place Order

Là giải pháp giao dịch chứng khoán với nhiều tính năng ưu việt và tinh xảo trên nền công nghệ kỹ thuật cao; giao diện thân thiện, dễ sử dụng trên các thiết bị có kết nối Internet...
User manual
Updated version