Difficult both input and output
The appreciation of the US dollar, in theory, will benefit Vietnamese exporters, but in reality it is not. Pham Hai Long, General Director of Agrex Saigon Food Joint Stock Company, analyzed: The increase in the USD price to the highest level in the past 20 years has had a strong impact on the purchasing power of consumers when commodity prices were simultaneously get a raise.
For example, in the main EU market, goods in supermarkets on average increased by 10% compared to the time before the US Federal Reserve (Fed) adjusted interest rates. When the price of goods increases, users will tighten their spending, pulling the purchasing power of goods down. Orders that were supposed to be shipped from October received customer requests to move to December or next year.
“Not only exports, imports are also affected when the USD appreciates more than VND, businesses have to spend more money to buy imported materials. Specifically, the price of flour increased by 40%-50%, pushing up input costs, while decreasing exports made it difficult for businesses to husband. Currently, the company has to reduce capacity, not overtime, "- Mr. Long shared.
The textile and garment industry is also facing many challenges in both input and output. Mr. Pham Xuan Hong, Chairman of Ho Chi Minh City Textile, Embroidery and Knitting Association, said that when manufacturing enterprises, they have to import many raw materials. However, when the USD price increases, the revenue will be overspended on import and transport fees and incurs a huge exchange rate difference if the debt is denominated in USD.
"Importing raw materials for the textile and garment industry is also affected when the USD exchange rate fluctuates, import costs increase, output does not increase, it is difficult to output, causing some businesses to face losses" - Mr. Hong said.
Keeping the exchange rate to help stabilize import and export
The rise of the US dollar leads to an increase in international debt, putting pressure on Vietnam to raise interest rates, which is also a problem that the State Bank needs to solve. In which, the most important focus is on keeping the VND exchange rate stable against the USD. Because up to 70% of import-export contracts of Vietnamese enterprises are in USD, keeping the exchange rate stable means keeping the import-export sector stable.
Besides, keeping the VND exchange rate stable against the USD is an extremely important policy to stabilize core inflation, thereby contributing to stabilizing commodity prices in the market and ensuring the inflation index. at low level. - Assoc
Expand the market, find new orders
Mr. Tran Quoc Manh, General Director of Saigon Production and Trading Joint Stock Company (SADACO), said that in the current high USD context, the most important thing is that the Government needs to stabilize the macro-economy, keep exchange rate stability. Although this task is difficult, but the economy is stable, businesses also try to overcome difficulties.
In addition, ministries and branches, especially the Ministry of Industry and Trade, need to step up trade promotion, encourage all sectors at home and abroad to participate in trade promotion, organize many international fairs, invite International customers participate. From there, Vietnamese businesses have the opportunity to find new customers and have many new orders during the year-end period.
"Our company itself is also saving maximum costs, trying to maintain production throughout the year and expand the market," said Mr. Manh.
Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, said that despite facing many difficulties due to the impact of inflation in the world, exports in the past nine months were estimated at about $35 billion, up 21% over the same period last year. last year. "This is a great effort for Vietnam's textile and garment industry in the face of pressure from the world market," said Mr. Giang.
To get the above impressive number, Mr. Giang said that textile enterprises have adapted very quickly to the pressure of the market. For example, if before, businesses focused only on traditional markets, now they are shifting to many new markets.
In particular, Vietnamese enterprises have quickly switched from knitwear to woven goods. In the face of global inflationary pressures, which led to a decrease in orders, businesses have actively rearranged their labor structure and production output. Accordingly, some businesses have reduced working hours, not overtime to both maintain labor resources and employees' wages, and meet orders, and avoid unnecessary waste.
"In view of the positive changes of Vietnam's textile and garment enterprises, we still expect and aim to reach $44 billion by the end of this year," said the chairman of the Vietnam Textile and Apparel Association. He also recommended that in the face of increasing pressure on input materials, businesses should accept the rules of the game, and at the same time make flexible changes to the policies and laws of some countries on production standards. Green, clean, safe.
According to Mr. Pham Xuan Hong, Chairman of Ho Chi Minh City Textile, Embroidery and Knitting Association, in the context of the unfavorable USD exchange rate and the current difficult market, businesses should not put too much profit on the top but try to maintain Production maintenance and small orders, low prices also have to do; promote domestic consumption.
In addition, Mr. Hong also suggested that the Government, ministries and branches should have policies to support businesses in this difficult time, because exchange rate fluctuations may continue. Specifically, the Government considers supporting businesses that are late in paying corporate income tax and paying insurance so they can take care of their employees.
The Vietnamese dong depreciates less than the currencies of many countries
According to statistics, since the beginning of the year, the dollar has increased by about 17%. At a recent press conference of the State Bank of Vietnam, Mr. Pham Chi Quang, Deputy Director of the Monetary Policy Department, said that although the market had many great fluctuations, thanks to the management of synchronous and flexible monetary policies. Therefore, in the first nine months of the year, the VND depreciated only about 4% against the USD, much lower than the devaluation of other currencies and VND was the most stable currency in the region.
Before the devaluation of the currencies of the countries above, if the Vietnamese dong depreciates too much, it will lead to a huge increase in import inflation.
QUANG HUY
