Farm produce businesses seeking stable supply sources for exports to China
VOV.VN - With China’s reopening anticipated to create favourable conditions for several import-export industries, including Vietnamese farm produce, local firms are required to seek stable supply sources in a bid to fulfil export orders from Chinese partners, according to industry insiders.
Immediately after China reopened its border, export orders for dragon fruit from the Mekong Delta province of Long An have increased dramatically. The price of the fruit has therefore skyrocketed from between VND5,000 to VND10,000 per kilo to between VND25,000 to VND32,000 per kilo, and the figure is expected to keep rising over the next few days.
Nguyen Thanh Tuu, deputy director of Thanh Hue Agricultural Products Import-Export Company Limited in Chau Thanh district of Long An province, revealed that the region has been in short supply of dragon fruit to supply the Chinese market, despite the price witnessing a three-fold rise.
Most businesses have fulfilled export orders placed by importers from the EU, Middle East, and India for previously signed deals with local firms, Tuu explained one of the reasons, adding only a few businesses have been capable of mobilising their supply sources to export to the northern neighbour as they have moved to establish and maintain growing areas specifically for dragon fruit.
Tran Ngoc Quy, director of Tam Nguyen Food Import-Export Agricultural Company in Tay Ninh province, appreciated China’s move but said its sudden reopening before the Lunar New Year has led several businesses to face a number of challenges in terms of managing the source of goods for the market.
Furthermore, Quy said several businesses have encountered financial difficulties related to bank loans despite seeking the supply source of goods and meeting the quality requirements by Chinese partners.
Experts pointed out that local businesses are now struggling with high interest rates to reboot post-pandemic production, adding that banks should be flexible in its interest rate policy to help firms get easy access to loans for production recovery and export orders.
Dr. Ho Minh Son, director of the Institute for Market Research and International Communication, also reminded enterprises, cooperatives, and farmers are required to make thorough preparations for raw material zones and export orders as a means of avoiding mass production in the future.
