Chinese keep collecting materials, businesses keep complaining
July 19, 2011 about Business, News
LookAtVietnam - Chinese keep flocking to Vietnam to collect farm produce, which has pushed the domestic prices up and putting hard pressure on the inflation. Meanwhile, the Ministry of Industry and Trade still says that this is a “sensitive” matter which is difficult to be dealt with.
Businesses complain, but don’t do anything
Vietnamese have been trying to boost exports to China, but they are not happy when farmers can sell more farm produce to Chinese businessmen, who come directly to material growing areas to collect products.
Experts have warned that if the current situation cannot be improved, Chinese businesses will keep collecting farm produce and control farm produce prices. Farmers would get big profits in the immediate time, but they would suffer later, once Chinese businessmen suddenly stop collecting materials.
They have also warned that Vietnam’s agricultural production plan may be spoiled, which may kill the domestic production, because Vietnamese enterprises cannot purchase materials for processing.
In an interview given to DVT, Pham Chi Lan, a well-known economist, pointed out that Chinese businessmen come to Vietnam as travelers and they do not have any business license. They also do not belong to any business institutions. As a result, it is impossible for local authorities to control the expats, while the State cannot collect tax from them.
Enterprises keep complaining that they do not have enough materials to keep normal production. Seafood companies complain that they cannot collect enough materials to fulfill export orders. The Vietnam Association of Seafood Exporters and Producers (VASEP) has asked the Ministry of Industry and Trade to consider restricting the collection of seafood materials by Chinese businessmen.