wiki globe

Posts Tagged ‘value’

Where are Vietnamese goods in the global value chain?

In Uncategorized on January 8, 2011 at 4:12 am




Where are Vietnamese goods in the global value chain?


QĐND – Monday, January 03, 2011, 20:37 (GMT+7)

Vietnam is well known as one of the most powerful exporters of agricultural products in the world. However, Vietnamese farmers and Vietnamese enterprises cannot pocket enough money from their exports.


H’Nu is sitting by the loom in her house in Don Village in EaWer commune, Buon Don District in Dak Lak province. When she does not have to go to the rice field, she stays at home to weave blockade products to sell to tourists. Forty kilometers far away from her house, the Buon Ma Thuot Coffee Transaction Centre is operating, where people trade coffee and earn money from the coffee beans H’Nu and her husband harvest. However, she is neither aware or concerned with this. The only thing H’Nu knows is that her husband sold coffee at 30,000 dong per kilo.


H’Nu’s coffee


Daklak, the most fertile land of the Central Highlands, is reputable for endless coffee fields. However, for many years local farmers have experienced difficulties. Sometimes they suffer from the failures of the coffee crop and they do not earn enough money to make living. However, when they have bountiful crops, they are still not satisfied, because the prices always decrease due to the profuse supply.


Every year after the harvesting H’Nu sells coffee to merchants, who then sell the coffee to processors and exporters. The prices depend on the export prices. If Vietnam’s coffee sells for good prices, she will be able to sell coffee at higher prices, and vice versa. The only source that provides information to H’Nu are the bulletins of the Dak Lak television. “I wish the coffee price would stay firmly at 35,000 dong per kilo or higher. Only with that price can we earn enough money to make a living,” H’Nu said.


Other farmers have worries similar to H’Nu. Vietnam now has 561,000 households growing coffee plants, 46 percent of which are poor households, 30 percent of coffee growers are ethnic minorities and 75 percent of these people are poor people.


Many experts believe that Vietnam has enough advantages and potential to boost coffee exports. However, Vietnam’s coffee products have remained in the lower segment of the global value chain.


H/Nu and other coffee growers once put high hopes on sustainable development models for Vietnam’s coffee. To date, Vietnam has not made any considerable progress in implementing the model.


Vietnamese exporters still cannot earn money from added value


The same situation is occurring  in other agricultural products, such as peppers, cashews, tea, garments and footwear products. In the global value chain, Vietnamese enterprises can only undertake production phases which contain little added value and the phases which generate most of the profit (processing products, increasing brand value and commercializing products) are undertaken by foreign enterprises.


For example, when making garment products, Vietnamese enterprises only make finished products, which generates the lowest value in the value chain, while other phases of the production chain, including material production, and production commercialization are carried out by foreign enterprises.


Currently, the garment and footwear products that Vietnam export under the mode of FOB accounts for just 20 percent of the garment product value chain. As a matter of fact, enterprises cannot pocket all 20 percent because they have to pay for materials, labor and import taxes.


The problem is that Vietnamese enterprises still lacks the ability to design products that fit the tastes of European and US consumers. Vietnamese enterprises can only suggest ideas, while only importers can complete the designs and make decisions about production. Distribution is also a weak point of Vietnamese producers due to the limitations in experience and capital.


Source: Thoi bao Kinh te Saigon


Source: QDND

Cashew export value to reach 1b USD for first time

In Uncategorized on December 16, 2010 at 9:26 pm




Cashew export value to reach 1b USD for first time


QĐND – Thursday, December 16, 2010, 21:3 (GMT+7)

The cashew industry is expected to top the 1 billion USD mark in export value this year for the first time, helping the country maintain its position as the world’s leading cashew exporter for the fourth consecutive year, the Vietnam Cashew Association (Vinacas) says.


The industry was predicted to export 198,000 tonnes of cashews, earning 1.14 billion USD for this year, said Nguyen Thai Hoc, Vinacas chairman. Exports would jump by 11.8 percent in volume and 34 percent in value against last year.


A year-on-year increase of 32 percent in value to 1.5 billion USD was projected for next year, Hoc said.


“It might be difficult to hit this target because the industry may lack raw materials and workers for processing export products. It may also have to struggle due to low product diversification and increased processing costs.”


“However, Vinacas hopes that the business environment at home and abroad will help the industry reach next year’s target,” he added.


The association had already completed a draft development strategy for the cashew industry by 2015 and towards 2020 to submit to the Government and other relevant ministries and sectors, Hoc said.


According to the Ministry of Agriculture and Rural Development, the industry exported 179,000 tonnes of cashew in the first 11 months of this year, worth 1 billion USD, a year-on-year increase of 11 percent in volume and 31.9 percent in value.


The average export price of Vietnamese cashew jumped by 27 percent to 6,000 USD per tonne compared with the same period last year, said Hoc.


Vietnam ‘s cashew nuts are exported to 52 countries and territories, including the United States , China and the European Union.


Source: VNA


Source: QDND

Trading value on HOSE peaks six-month high

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

Vietnam’s benchmark VN-Index slightly surged on December 6, extending its winning streak to three straight days thanked to robust demand. Trading value on the city bourse reached a six-month high.

The gauge of of 270 companies and five mutual funds listed on the Ho Chi Minh Stock Exchange edged up 0.26 percent, or 1.21 points, to close at 465.56 points.


Among the index members, 168 climbed, 55 dropped, while 52 remained flat.


Trading volume on the city bourse topped 96.78 million shares worth VND2.39 trillion, the highest level since May.


Saigon Securities Inc. (SSI), the country’s largest brokerage, led the list of most active shares in volume with 7.15 million shares changing hands.


It was followed by Refrigeration Electrical Engineering Corporation (REE) with 5.4 million shares traded.


Saigon Thuong Tin Commercial Bank or Sacombank (STB) came in third with 4.27 million shares changing hands.


Dong Nai Roofsheet and Construction Material Joint Stock Company (DCT), LICOGI 16 Joint Stock Company (LCG), Long Giang Investment and Urban Development Joint Stock Company (LGL), Viet Nhat Seafood Corporation (VNH), and MTGas Joint Stock Company (MTG) were the biggest winners on southern market. They all enhanced the daily maximum allowed limit of 5 percent.


Sonadezi Long Thanh (SZL) advanced the fifth consecutive day, accelerating 4.98 percent to VND23,200.


Thu Duc Housing Development Corporation (TDH) rallied 4.97 percent to trade at VND33,800.


Royal International Corporation (RIC) plunged 4.93 percent to VND13,500.


Vien Dong Pharmaceutical Joint Stock Company (DVD) retreated 4.9 percent to VND48,500.


Viet Nam Golf Tourism Joint Stock Company (VNG) slipped 4.76 percent to VND16,000.


Meanwhile, the Hanoi’s HNX-Index added up 0.35 percent, or 0.41 points, to close at 117.07 points. Trading volume rose to 87.76 million shares, the highest level since the establishment of this index. However, trading value which was worth VND1.76 trillion was much lower than the record high of VND2.93 trillion set on May 7.


The UPCom-Index increased by 0.34 points to 43.3 points this morning. A total of 261,500 shares changed hands at a value of VND2.79 billion.

Source: SGGP

Industrial value ratio drops

In Uncategorized on October 16, 2008 at 12:56 pm

The valued added ratio in Vietnamese industrial products has seen gradual depreciation in the past few years, according to the Ministry of Industry and Trade.

While the ratio accounted for 42.5 percent in 1995, it is expected to decline to 23.5 percent this year and to 21.3 percent in 2010, the ministry reported.

The ministry attributed the depreciation of the ratio to the high intermediate costs in production, the incompetence of processing and manufacturing sectors and the high labour intensive ratio in production.

In addition, national plans for the development of key economic groups have failed to meet initial targets because of their poor business expansion and the lack of cooperation between them.

Meanwhile, investment in new production technologies is still low, accounting for a mere eight to ten percent. This, coupled with the lack of a qualified workforce in the hi-tech industries, also hampered the development of the national industries.

On the other hand, the increasing costs of raw materials have raised the input costs, hence lowering the value added ratio in industrial products, according to the ministry.

According to Industry and Trade Minister Vu Huy Hoang, the quality of industry performance affects development speed of the overall industry – the key role in the development of the country’s economy.

The ministry called for a number of measures to increase the ratio such as restructuring key industries, fostering the development of supporting industries and organising more training programmes for the workforce in key industries including metallurgy, core chemical and minerals.

The ministry also mentioned the need to have favourable policies to encourage the development of new industrial products, increase manufacturing content and renew the management system.

According to the General Statistics Office, industrial production growth rate in September fell to its lowest compared to the monthly average earlier in the year.

The figure marks only a 15.2 percent year-on-year increase. The increase in the previous three year’s September figures were 18.1 percent in 2007, 18.7 percent in 2006 and 19.8 percent in 2005.

Growth in industrial production value in the first nine months of this year reached only 16 percent, the office said.

The figure was also the lowest compared to the last three years: 17.1 percent in 2007, 16.8 percent in 2006, and 16.5 percent in 2005.-

Industrial value ratio drops

In Uncategorized on October 16, 2008 at 12:25 pm

HA NOI — The value added ratio in Vietnamese industrial products have seen gradual depreciation in the past few years, according to the Ministry of Industry and Trade.


While the ratio accounted for 42.5 per cent in 1995, it is expected to decline to 23.5 per cent this year and to 21.3 per cent in 2010, the ministry reported.


The ministry attributed the depreciation of the ratio to the high intermediate costs in production, the incompetence of processing and manufacturing sectors, the high labour intensive ratio in production, and the worsening of the exploitation sector.


In addition, national plans for the development of key economic groups have failed to meet initial targets because of their poor business expansion and the lack of co-operation between them.


Meanwhile, investment in new production technologies is still low, accounting for a mere eight to ten per cent. This, coupled with the lack of a qualified workforce in the high tech industries, also hampered the development of the national industries.


On the other hand, the increasing costs of raw materials have raised the input costs, hence lowering the value added ratio in industrial products, according to the ministry.


According to Industry and Trade Minister Vu Huy Hoang, the quality of industry performance affects development speed of the overall industry – the key role in the development of the country’s economy.


The ministry called for a number of measures to increase the ratio such as restructuring key industries, fostering the development of supporting industries and organising more training programmes for the workforce in key industries including metallurgy, core chemical and minerals.


The ministry also mentioned the need to: have favourable policies to encourage the development of new industrial products, increase manufacturing content and renew the management system.


 


According to the General Statistics Office, industrial production value in September fell to its lowest compared to the monthly average earlier in the year.


 


The figure marks only a 15.2 per cent year-on-year increase. The increase in the previous three years’ September figures were 18.1 per cent in 2007, 18.7 per cent in 2006 and 19.8 per cent in 2005.


Growth in industrial production value in the first nine months of this year reached only 16 per cent, the office said.


The figure was also the lowest compared to the last three years: 17.1 per cent in 2007, 16.8 per cent in 2006 and 16.5 per cent in 2005. —