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Posts Tagged ‘importers’

Yearend dollar demand piles up pressure on local importers

In Uncategorized on December 16, 2010 at 10:05 am

Surging demand for the US dollars at yearend pushed the dollar/Vietnam dong exchange rate up to the highest ever of VND21,570 on the unofficial market on December 1st, which will hurt local importers badly.

(Photo: Minh Tri)


The surge usually come at the end of every year, when local businesses buy more shipments to prepare for the Lunar New Year season and foreign firms need to transfer dollars to their home. It’s also the due dates of other businesses, who have to pay US dollar debts.


Many commercial lenders are indirectly selling the greenback at higher rates than the State Bank of Vietnam’s regulated one by charging foreign currency transactions fee and cash counting fee and payment fee, many importers said. 


Local importers have to accept to pay those extra fees as they have no other choice, said Vietnam Young Business Association chairman Vo Quoc Thang.


They need to pay their foreign suppliers in time, so they are willing to buy dollars at high prices, he said. With purchase orders’ prices remaining unchanged, these extra fees generate big losses to the importers.


Do Duy Thai, general director of the steel maker Thep Viet, said commercial banks sell the greenback at the exchange rate of VND21,550 per one US dollar. “Both bank interest rate and the US dollar/Vietnam dong exchange rate are on a rise, leaving local businesses struggling to pay their imported shipments,” Thai said.


A director of a Ho Chi Minh City-based lender, who wanted to be unnamed, said banks bought dollars from exporters, who tried to take profits from the dollar’s surging demand by selling at high prices.


Therefore the lenders will incur losses if they sell dollars at the regulated rate, the director said.


The State Bank of Vietnam earlier announced it would continue to sell dollars to essential-product importers, but commercial banks said the supply didn’t meet the demand.


Dr. Tran Du Lich, member of the National Monetary Policy Consulting Council, recommended that the central bank should name the importers, who are allowed to buy dollars, so they don’t have to purchase at the unofficial market.


This move will also prevent local businesses from importing luxury products, which will widen the trade gap. Lich said. The central bank also has to strictly forbid illegal foreign currency exchanges, which are taking place at the so-called black market, he said.


Nguyen Hoang Minh, deputy director of  the State Bank of Vietnam’s Ho Chi Minh City branch, noticed speculators pushed the dollar/Vietnam dong exchange rates on the unofficial market up to cash in the rising demand.


Statistics of the branch shows that the amount of US dollar deposits reached VND188.2 billion (US$9 million), rising 12 percent so far this year. The amount of US dollar loans rose 35.4 percent to VND184.880 billion, according to the central bank’s HCMC branch.

Source: SGGP

Yearend dollar demand piles up pressure on local importers

In Uncategorized on December 16, 2010 at 10:05 am

Surging demand for the US dollars at yearend pushed the dollar/Vietnam dong exchange rate up to the highest ever of VND21,570 on the unofficial market on December 1st, which will hurt local importers badly.

(Photo: Minh Tri)

The surge usually come at the end of every year, when local businesses buy more shipments to prepare for the Lunar New Year season and foreign firms need to transfer dollars to their home. It’s also the due dates of other businesses, who have to pay US dollar debts.


Many commercial lenders are indirectly selling the greenback at higher rates than the State Bank of Vietnam’s regulated one by charging foreign currency transactions fee and cash counting fee and payment fee, many importers said. 


Local importers have to accept to pay those extra fees as they have no other choice, said Vietnam Young Business Association chairman Vo Quoc Thang.


They need to pay their foreign suppliers in time, so they are willing to buy dollars at high prices, he said. With purchase orders’ prices remaining unchanged, these extra fees generate big losses to the importers.


Do Duy Thai, general director of the steel maker Thep Viet, said commercial banks sell the greenback at the exchange rate of VND21,550 per one US dollar. “Both bank interest rate and the US dollar/Vietnam dong exchange rate are on a rise, leaving local businesses struggling to pay their imported shipments,” Thai said.


A director of a Ho Chi Minh City-based lender, who wanted to be unnamed, said banks bought dollars from exporters, who tried to take profits from the dollar’s surging demand by selling at high prices.


Therefore the lenders will incur losses if they sell dollars at the regulated rate, the director said.


The State Bank of Vietnam earlier announced it would continue to sell dollars to essential-product importers, but commercial banks said the supply didn’t meet the demand.


Dr. Tran Du Lich, member of the National Monetary Policy Consulting Council, recommended that the central bank should name the importers, who are allowed to buy dollars, so they don’t have to purchase at the unofficial market.


This move will also prevent local businesses from importing luxury products, which will widen the trade gap. Lich said. The central bank also has to strictly forbid illegal foreign currency exchanges, which are taking place at the so-called black market, he said.


Nguyen Hoang Minh, deputy director of  the State Bank of Vietnam’s Ho Chi Minh City branch, noticed speculators pushed the dollar/Vietnam dong exchange rates on the unofficial market up to cash in the rising demand.


Statistics of the branch shows that the amount of US dollar deposits reached VND188.2 billion (US$9 million), rising 12 percent so far this year. The amount of US dollar loans rose 35.4 percent to VND184.880 billion, according to the central bank’s HCMC branch.

Source: SGGP

Selling dollars to essential-product importers only, says SBV

In Uncategorized on November 27, 2010 at 11:20 am

The State Bank of Vietnam will keep close eyes on selling dollars to essential-product importers at local lenders as it continues to sell the greenback until the end of the year, said vice governor.

A cash teller at the HCMC-based ACB Bank poses piles of dollars. (Photo by Minh Tri)



 


Surge in the foreign exchange rate of Vietnam dong and US dollar on the so-called black market was halted after the State Bank of Vietnam announced it would sell dollars to the market.


 


The Vietnam dong is VND21,260 per dollar on 22nd November on the so-called black market, edging up VND260 in the last two weeks.


 


Despite the central bank’s announcement, local businesses said they struggled to buy the greenbacks from local banks.


 


They explained that they had to exchange the greenback on the so-called black market at the rate of VND20,500-21,260 per dollar, VND500-1,400 higher than local lenders’ announced rate. 


 


Central bank Vice Governor Tran Minh Tuan promised that the state bank will continue to sell dollars to local importers trading essential products, mainly in medicine, steel and sugar, until year end in accordance with the government’s instructions.


 


The state lender sold US$300 million to the market in the first two weeks this month and will continue to sell more, Mr. Tuan said. “The government’s had to use dollars from inward remittance and foreign investments to fill up the trade deficit for many years. Therefore, exporters should also support the domestic greenback supply by selling back dollar to local lenders,” the vice governor said.


 


Mr. Tuan also said that the central bank supervises the dollar selling at local lenders by setting up supervisory teams.


 


The State Bank of Vietnam’s Ho Chi Minh City branch last week helped 14 importers trading essential productions to get loans with preferential interest rates.


 


However, some commercial banks still shunned the central bank’s regulation, selling dollars to some importers to trade luxury cell phones, cosmetics and even some agriculture products that can be produced in local market, according to Ho Huu Hanh, director of the central bank’s Ho Chi Minh City.


 


“It’s hard to find out good clients during tough times. Therefore, we hardly turn down a dollar buying requirement from big clients, who want to import non-essential products,” a director of a local lender, who asked not to be named, said.


 


“On the other hand, we also hesitate to sell dollars to importers trading essential products as we don’t know much about the company’s business status,” he added.


 

Source: SGGP

1,000 importers to visit VIFA 2010

In Vietnam Economy on March 9, 2010 at 8:50 am




1,000 importers to visit VIFA 2010


QĐND – Monday, March 08, 2010, 21:12 (GMT+7)

The Vietnam International Furniture and Handicraft Art Exports Fair (VIFA 2010) will be held from March 11th to 14th at the Sai Gon Exhibition and Fair Center, according to the organising board.


The organisers said that there will be 600 booths from 150 international and domestic businesses, which will showcase wooden products, wooden materials and machines used in the timber industry.


As many as 1,000 international importers from 67 nations have so far registered their visits to the fair, organisers affirmed.


This will be a good opportunity for domestic timber producers to exchange information and seek partners.      


Source: NLD


Translated by Thu Nguyen


Source: QDND

US importers welcome DOC’s decision on Vietnamese apparel

In Uncategorized on November 26, 2008 at 4:08 pm

Washington (VNA) – The US Association of Importers of Textiles and Apparel (AITA) has welcomed the Department of Commerce (DOC)’s decision to conclude review of Vietnam’s certain textile and apparel products.

AITA Executive Director Laura Jones, who has been highly critical of the Bush administration’s monitoring programme from the outset 18 months ago, praised the DOC’s final conclusion, and said: “The fact that three Administration reviews have consistently found no evidence of dumping confirms that this programme never should have been established in the first place.”

She charged that the monitoring forced importers to change sourcing plans, adding to costs and undermining efficiencies and diverted apparel orders to other sources and “did not bring a single order or job to the United States.”

The AITA Executive Director urged the incoming Obama administration to “focus on positive initiatives and not make the mistake of thinking monitoring is a replacement for sound business decisions.”

In its Nov.21 press release, the DOC officially announced that there is insufficient evidence to warrant self-initiating an antidumping investigation into Vietnam’s certain textile and apparel products.-