Import companies prove to be the biggest sufferers from the dollar price decreases. They have to apply a lot of measures to save the production.
Bui Quoc Cuong, General Director of Dong Nai-Long Chau Company, said that the dollar appreciation has led to the sharp price increases of input materials used to make animal feed. Fish powder price, for example, has increased from 7500 dong to 10,500 dong per kilo.
According to Cuong, the prices of import and domestically made materials have increased because the dollar has increased by 20-30 percent in value in the last three months. Meanwhile, the sale prices of finished animal feed products have increased by 200-300 dong per kilo, or three or four percent. Feed producers cannot raise the sale prices any further, because of the stiff competition on the market.
Regarding the dollar supply, Cuong said his enterprise purchases dollars at 20,500 dong per dollar on the black market, sells to banks at 19,500 dong per dollar, and then import products. The problem is that commercial banks do not have dollars to sell to enterprises, and Cuong has to seek dollars on the black market and tries to legalise the purchases.
Director of a pharmacy company said that he has to change the company’s production strategy due to the dollar appreciation. In order to cut down expenses, his company has tried to use more materials supplied by domestic sources rather than relying on imports
A senior executive of a wooden furniture company said that since the dong/dollar exchange rate has been fluctuating so heavily, he has to borrow money in Vietnam dong instead of the dollar, because he fears the dollar would appreciate further.
“Previously, we preferred borrowing money in dollar. However, since the dollar has been appreciating, borrowing in Vietnamese dong should be the first choice,” he said.
Director of a business said he always tries to buy dollars under option contracts in order to minimize risks. However, at this moment, banks do not like to provide this service, because the dollar supply is not profuse, while it is difficult to predict the dollar price performance.
The dollar price in the black market remains sky high. On November 2nd morning, the dollar price increased by another 10-20 dong per dollar to 20,470 – 20,510 dong per dollar (purchase and sale prices).
The steady dollar price increases have kept the gold price sky high, though the gold price has decreased slightly to follow the price decreases in the world market.
The gold price, after hitting the record high at 33.55 million dong per tael yesterday, has decreased slightly. At 9 am of November 2nd, SJC brand gold was traded at 33.38-33.43 million dong per tael in HCM City. SBJ brand gold was traded at 33.42-33.46 million dong per tael at the same time.
In the world market, the gold price on Comex decreased by $10 per ounce last night. The gold price in Asia is now staying at $1353.2 per ounce.
|< Prev||Next >|
» First gold for Vietnam at 27th SEA Games
» 8-year-old kids row to school
» Parents pose as teens to protect kids online
Latest Category Posts
- Vietnam levies anti-dumping duty on steel imports after lawsuits
- Slower growth in manufacturing sector
- Ministries to probe sharp gas price hike
- BIDV offers infrastructure funds
- Time for supermarket chains
- Australia interrupted cow exports to VN to clarify dumping rumor
- Vietnamese goods faked in China, sold in Vietnam
- Firms face huge losses as gas prices skyrocket
- Vietnam is SE Asia’s fastest growing smartphone market: GfK
- Thousands of workers won’t have Tet bonus
Popular Category Posts
- French businesses hails Vietnam’s investment environment
- The South Korean wave in Vietnam
- Exporters get support to enter EU market
- FDI sector lifts up hardware industry
- Vietnam may cut down rice land to increase incomes for farmers
- MoIT asked to rethink hydro-power plants
- A lot of FDI enterprises declare huge losses
- Four firms in HCM City face thorough inspection after salary theft scam
- More FDI flows into science-technology
- Restoring order in shrimp material export: An urgent need
- Ornamental fish make profit splash
- Showpiece casino lacking investors
- National economy grows by 5.14% in 9 months
- Vermont welcomes VN investors to seize opportunities
- US experts advise Vietnam how to lift aviation industry to new heights
- Health Ministry tries to keep a rein, but formula milk price remains restive
- $250 million to build a Vietnam-Laos bauxite pipe
- Vietnamese rice exporters seek ways to boost sales
- Chinese or American?
- Local firms lack knowledge of TPP trade agreement