Although there remain problems as many banks are applying for bankruptcy, high unemployment, various potential challenges in the US, many people still believe that the world’s economy has passed the crisis. Many Vietnamese exporters have well prepared for such opportunities.
Truong Dinh Tuyen, former trade minister, said that the market has improved because the crisis has already hit the bottom; some economies have partly recovered; the real estate market also is showing better signs.
Notably, export of many goods items to China have sharply increased. In the first seven months, seafood export rose by 46 percent, export of plastic products 37.47 percent and tea export 14.43 percent.
China is also a large computer and electronic component import country of Vietnam. Between January and July, although computer and electronic component export to China decreased, it reached $124.83 million, accounting for 10 percent of total export turnover to this market. Meanwhile, Vietnam’s footwear export to China reported at over $55 million, down by only 0.64 percent.
Remarkably, Vietnam-Japan economic partnership agreement became effective from October 1. Accordingly, over 7,200 import duty lines from Vietnam to Japan are entitled to a zero rate, offering great opportunities for many exported products of Vietnam.
Tuyen added that when the crisis started, such essential goods as consumer goods, pharmaceutical goods still kept good growth. When the economy recovered, the apparel sector will be the first to benefit.
Nguyen Van Thoi, chair of TNG Investment and Trading Joint Stock Co, said that although meeting various difficulties, the company still posts a profit after-tax of 26 billion dong in 2009. He added that there are now some optimistic signs when the company has signed more goods orders.
After the crisis, apparel businesses still have many potential opportunities for growth. Preparing for post-crisis opportunities, TNG will kick off construction of another manufacture with total investment of 150 billion dong on November 2. What is notable is that the manufacturer’s products will be completely produced by TNG but the company will not process products for foreign partners. Thus, added value will be much higher.
Tuyen analysed that wood processing also has great potential for growth. Currently, the number of houses sold in the US has shown an increase. The real estate market in many places has presented recovery signs. This is an important basis to promote sales for interior wood products.
Vo Truong Thanh, chair of Truong Thanh Wood Processing Co (TTF), said that before the crisis, the wood processing sector reported good growth, sometimes up to 68 percent. However, when the crisis happened, this sector was hurt heavily. The biggest difficulty of this sector is that imported materials account for up to 80 percent of total materials. The second difficulty is the shortage of wood processing technical workers. The third difficulty is that exported products are mainly designed based on customers’ requests.
Furthermore, sales of wood products amidst the crisis also reduced because this is not an essential item.
In the first nine months, export of wood products reported negative growth, some minus 15 percent. Meanwhile, TTF still reported export growth of over 20 percent in the first nine months, and expectedly 40 percent in 2009 as a whole. Currently, the company has signed many goods orders, which will be processed until April. TTF is expected to post net profit of 25-30 billion dong this year.
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