Home   >   NEWS & VIEWS   >   News

  • Solutions to remove difficulties for the industry which

    May 24th, 2016

    Vietnam cashew industry for 11 consecutive years the world leader in exports and thrive in recent years. However, since the beginning of 2016 until now, the market is more volatile in price and supply of crude. Facing this situation, experts, representatives of the business sector made ​​more practical is to remove difficulties.

    According to Nguyen Duc Nguyen Duc Thanh - Chairman of the Vietnam Cashew Association (Vinacas): "the first 5 months of 2016, Vietnam exported 128 thousand tons of cashew nuts, earning more than $ 1 billion, also increased the price of exports , about 12%. This year, the market has changed, if as before China is an important market, always has a high export turnover, but in the first 5 months this year, China surpassed the United States, the market rise top-selling product that our country ".

    Cause Mr Thanh: "Recently, US consumers increasingly realize that Vietnam is a country new product offers many things, especially the processing technology, the world leader, secure food hygiene as compared with other countries, they have moved towards using products more articles of Vietnam to other countries such as India, Ivory Coast.

    Evaluating the favorable level of the US market for the products of the Vietnam thing, Mr. Thanh said: "The situation is very positive, because in addition to top-quality products, this sector is facing our country great advantages in the US market is almost no barriers at all, because this country does not produce what they do not pose any protectionist barriers."

    Discuss future orientations, he Thanh said that cashew sector need to invest more to escape the situation "big but not strong", also the No. 1 export, import and No. 1 but has not been effectively brought as desire, and the status of local firms competing against each other, this could undermine this sector.

    With 25 years of operating experience in this sector, Nguyen Thai Son - Director of Long Son Company, said: "One of the biggest weaknesses of the cashew sector is dependent on a lot of imported raw materials, thus potentially difficult constraints, risks are high. Once their countries active in the production and processing are seen as sources of raw materials will be reduced significantly. Also because of lack of raw materials should happen that enterprises buy paintings sell paintings and also cases where the seller has the product mix, leading to quality assurance. The risk of high food insecurity, status monitoring, management is not tight. Recently the European countries, America has given the food safety standards are very high, leading to the exporters face many difficulties ".

    "For the industry thrive, policy makers create more open documents, not to happen the business of harassment, procedures cumbersome, difficult. Vinacas role is very important. Therefore, Vinacas set of business needs to create a competitive strength, not to present themselves as strongly as everyone. " Mr. Son said.

    According to Dr. Nguyen Nhu Hien, representative of the Cultivation Department (MARD): "Organization of production, the link between farmers, between farmers and enterprises not established; Growers difficult access to credit. Businesses not associated with the farmer building materials; yet what form the system purchased directly from farmers, price volatility, do not buy the standard, leading to uneven quality. "

    "The next year, the industry that our country needs to develop in a sustainable way, synchronization, diversified quality products, providing high added value, improve incomes for producers, constantly increasing the proportion of domestically produced raw materials, contribute to improving the lives of farmers, the interests of the business and ensure the ecological environment. " Dr Hien stated.

    In addition, an issue no less important is the fact that businesses participate more in international commercial transactions, but their position in the entry into and performance of contracts still quite low. The reason is the experience of negotiations and signing of contracts with foreign partners remains weak.

    According to Nguyen Thi Hong Ngan Lawyer: "To improve the odds of contracting, or dispute resolution, businesses need to be prepared well in all aspects, need to consult the laws and consulting unit Association for the protection of his interests. In parallel with that, the businesses have to equip yourself with the expertise and skills in negotiation, dispute resolution, the operation of sustainable new businesses. "

    Article and photo: Peace (Southern Representative Office)

    Source: Vietnam Business