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  • Having business sector due to lack of raw materials

    Jun 3rd, 2016

    What services this year, the output of our country reached nearly 400,000 tons, down 20% compared with that for last year.

    Vietnam is a producer, importer and exporter of the world's largest things. According to the plan of the Vietnam Cashew Association, this year's cashew production will reach 350,000 tons in our country with a turnover of over 2 billion 500 million dollars. However, domestic production of crude 1/3 only meet the needs of more than 300 enterprises processing and exporting. Lack of raw materials are making the business sector were difficult.

    This time, farmers in the two largest growing areas of the country's southeastern provinces and the Central Highlands has completed the harvest. What services this year, the output of our country reached nearly 400,000 tons, down 20% compared with that for last year. Meanwhile, the processing capacity of more than 300 processing enterprises, exports of cashew nuts in the country up to 1.3 million tons. According to the plan, from now until the end of the year, Vietnam enterprises will import 450,000 tons of raw cashew nuts with a total value of more than $ 600 million.

    Thai Japanese Ba Hoa, Deputy Director of JSC Nhat Huy said: "I count that as long as I buy my materials for processing in a year. If they do not deliver customers, I'll spike, no rows for workers. The first customer contract that he had no goods to deliver, I will harm ".

    Processing enterprises, export it being dependent on imports of raw materials from African countries and Cambodia. This is a risky market, especially the state of the business partners to cancel the contract if the price increase of raw cashew nuts. The purchase contract disputes between businesses in the country and abroad increasingly complex.

    According to the International Arbitration Centre of Vietnam (VIAC), the number of trade disputes between Vietnam enterprises with foreign partners increased significantly. From 2008 to 2014, the agency has resolved 539 cases, of which the majority are sales contract requirements. Do not have good preparation for international trade disputes arise and lack of understanding of the law, many businesses in our country that imports can not sue and accept losing.

    Besides, the purchase of raw competition between enterprises of Vietnam and processing enterprises, the export of China, India and Ivory Coast is getting fiercer. Ivory Coast's own country's largest crude producer in Africa with about 725,000 tons of output in 2016, but their ability to process only 6% (equivalent to 45,000 tons).

    However, this sector of the country is the strategic direction will obviously attract more investment in processing technology in the near future. Besides, the enterprises of our country unfair competition, pushing the price of crude in the African countries and Cambodia increased to more than 16% over the same period last year.

    Pham Van Cong, Deputy Chairman Vietnam Cashew Association said: "Office and Permanent Vietnam Cashew Association has provided enterprises that processing the list of foreign enterprises can not afford to provide they still granted to the offering. There are many factories in Vietnam do not see that information should fall into the so-virtual, virtual price of the domestic market and internationally ".

    According to the plan, by 2020, the country will have 300,000 hectares of cashew, an increase of 5,000 hectares compared with the present time. According to Dr. Nguyen Nhu Hien, Deputy Chief of industrial plants - fruit trees - the Ministry of Agriculture and Rural Development, to the sustainable development of the cashew sector, businesses need to link more closely with farmers to source local raw materials stability. The local weather, land suitable for cashew as Binh Phuoc, Dong Nai, Gia Lai should have specific plans for each area under cultivation. Since then, combined with the enterprise to support farmers good breeding, cultivation techniques applied to improve productivity and quality of cashew.

    Nguyen Nhu Hien said: "Although in the past 3 years, Department of Crop Production, Ministry of Agriculture we tried, given that productivity increased by 3 kg / hectare. However, our goal in the coming period is to give an output of approximately 2 tons / hectare. So to be able to meet part of raw materials for the processing industry, and new advanced life of the farmers ".

    In parallel with the business sector closely linked to form a competitive strength in the international arena, Vietnam Cashew Association (Vinacas) should assist businesses resolve disputes with foreign enterprises and promoted further role as a bridge to domestic enterprises that have access to the new policy of the US, China and Europe.

    Source: VOV