Depending China market: Vietnam Cassava standing dead!

Depending China market: Vietnam Cassava standing dead!

  - The amount of inventory is too large cassava, VN must accept losses because quality sells not compete with other countries.

S & T enterprises encounter when getting preferential treatment as prescribed
Vietnamese enterprises "dead" on the floor because ... China
Sell cheap, losses

In recent years developed cassava, grown widely from north to south with a total area of up to 560.000ha. Ministry of Industry and Trade is included in the list of 10 commodities exported over 1 billion dollars, cassava is the export of agricultural commodities of the country's third largest rice and coffee after.

But, like any other commodity Vietnam cassava has fallen into a state of "dull" by China reduced purchasing. According to Pham Vu Ha - General Secretary of Vietnam Association, by the end of the month 6/2014 of the total cassava inventory of approximately 300,000 tonnes VN. Tapioca is 150,000 tons.

Cassava large inventories decreased by Chinese buyers
Cassava large inventories decreased by Chinese buyers
Mr. Ha said the main reason is because cassava VN depend primarily on only one China market, the difficult markets such as Japan, Korea, Russia demanding, requiring high-quality and rigorous in indicators of food safety and hygiene in the VN products not meet.

Up to 85% of VN's exports of cassava to China market. As of 20/6, VN exported 1,760 million tons, down 14% versus last year and down 35% compared to 2012.

Before the prolonged gloomy market and large inventories of many businesses selling VN to accept losses for under 420 dollars / 1 ton.

Therefore, many businesses are forced to stop production or manufacture in moderation, and commercial enterprises, it almost had to stop operations altogether.

But according to a recent report of Quang Ngai, cassava export availability has plummeted due to the Chinese market dependent.

Specifically, exports of wheat starch 6 months and only 23,000 tons, 30% of the plan.

Leader said the Quang Ngai Province, the first coming in September, the province will simultaneously E5 bio gasoline consumption alternative to A92. Area of cassava farmers in the province will gradually move to supply Bio-Ethanol plant production Dung Quat E5 instead of exporting crude to China today.

Reduced export processing enterprises in moderation ... deadlock

Fall into a similar situation, Pham Nhu Number, Vice Chairman of Quang Ngai province, said local first 6 months of this year exports about 100,000 tons of wood chips is only 29% of the plan. The cause of this decline is the low price of wood chips and limited consumer market that many forest product processing plants operating in moderation.

Mr. Number calculation, the average daily production 24 wood chip mills in the province of procurement of raw materials from farmers for a total of about 12 billion. If the plants have stopped buying due to price pressure China or stop importing this item, people will face many difficulties.

Exports of wood chips of Quang Ngai also fall into
Exports of wood chips of Quang Ngai also fall into "unmarketable"
Mr. Dao Tan Hue, PTSC Port Captain Services at Dung Quat economic zone calculation, if each ton of wood chips for export beginning in 2013 with the current price of 138 USD, the highest price is only 128 USD stops, sometimes dropped down to 122 USD per ton.

"Due to the Chinese press prices, purchasing power should slow first six months of this year exports of local wood chips significantly reduced compared with the same period last year," he said Hue. Implications of the development of wood chip processing plant massive, unplanned business basically pushed stalemate.

Before the problem extorted, Quang Ngai is facilitating the partnership of two investor Sojitz (Japan) and JK (Indian) investment pulp mill with a processing capacity of 200,000 tons per year. The project has invested more than $ 180 million, built at the Dung Quat Economic Zone deep processing raw wood chips.

Meanwhile, Nguyen Ton Quyen - Vice Chairman of Timber and Forest Products Association VN said the total value of exports of timber and timber products to China reached a high of VN (2013 reaching $ 740 million) but low value, low profits and hamper sustainable forest management.

VN mainly export all kinds of wood in the form of semi-processed raw materials, accounting for 80% of exports.

According to Mr. Right, mainly Chinese traders buying all kinds of wood products in the form of pre-processing and application technologies obsolete equipment is not environmentally friendly.

This has created unfair competition with domestic firms, leading to a scramble situation ingredients, pushing some farmers to run profitable to cut down saplings to sell to Chinese traders.

Chinese FDI in VN are mostly small businesses, the largest is $ 5 million, the smallest only 0.1 million. In contrast, China's FDI companies mainly deal in wood materials and auxiliary materials; these enterprises convey the kind of detailed wood products the demand for semi-processed timber from China to VN for assembly, finishing, branding VN origin for the purpose of tax evasion and avoid dumping when exported to markets in Europe.

Therefore, the positive impact of FDI on China for timber business VN is very limited.

Vietnamese enterprises "dead" on the floor because ... China

According to the Ministry of Agriculture and Rural Development, the past two months, the trend of agricultural exports has slowed down, the forecast will be more difficult. The reason is the tension in the East Sea, exchanged some agricultural goods between the two countries Vietnam - China difficulty and exports decline.

Minister of Agriculture and Rural Development Cao Duc Phat emphasized, for those difficult items to review and direct marketing agencies coordinate with ministries and agencies, working with water to remove the technical obstacles, as well as mobilizing countries to open their markets.

The Ministry will work with associations, enterprises in order to clarify the problems of the business, while directing agencies trying to support, facilitate business enterprises and boost exports.

Hieu Lam