return icon

Some industries lack orders, others cannot take more

While woodwork companies are lacking new export orders amid high inflation in the US and Europe, food-processing companies are not receiving new orders because of rising input material prices.

From January to June, 2022, Quang, the owner of a big wooden furniture manufacturer in HCM City, regularly received orders. Later, the number of clients began decreasing sharply, affecting the company’s business. Quang said the situation would not change until 2023. He said that his firm’s revenue had dropped by 30-40 percent. 

The decrease in woodwork consumption in the US and EU is explained by high inventories and low sales. Consumers in these countries are now concerned for essentials such as gas and food which are seeing escalating prices. 

“This has occurred in many markets. Some partners in the US and Europe are slow in making payments. Previously, they would pay within 30 days after delivery. But now the payment is made much later,” he said.

As the number of orders has dropped, the company has had to reduce workdays. Twenty percent of the workforce has been cut as the number of workdays has been reduced by four days a month. Some workers have quit because of low wages.

“We are struggling to survive. Cutting the workforce just helped a little. We still have to pay bank loan interest, factory rents, and fixed costs,” Quang said.

The latest reports by the four largest timber associations in Vietnam showed that of the 52 surveyed enterprises, revenue from the US has dropped by 8 to 80 percent, while some businesses said they had also lost revenue from the European market.

The situation is expected to remain unchanged in the last months of 2022. About 70 percent said they would scale down production to cut costs.

Under the project to develop a sustainable and effective wood processing industry in the 2021-2030 period, the export value of wood and forest products will reach $20 billion by 2025 and $25 billion by 2030.

Food processors

Ly Kim Chi, chair of the HCM City Food and Foodstuff Association (FFA), said that food processors were not taking new orders because of increasing input material prices.

In January-August 2022, the industrial production index of the food processing industry grew by 9 percent year on year. In HCM City, the index increased by 26.87 percent.

The demand for pasta, noodles, dry rice vermicelli and similar products has been very high from the US and Europe. However, Vietnamese producers are not receiving big orders for fear of input material price fluctuations.

After the pandemic, material prices increased by 15-40 percent. Other materials such as packaging and cartons increased by 30 percent, not to mention logistics costs. In many cases, enterprises are refusing orders as they cannot control material supply and prices.

Chi said enterprises should store materials to serve production, including the 2023 Tet (Lunar New Year) season to avoid the impact from price fluctuations.

Woodwork associations predict that the industry will not reach the export turnover target for 2022. Enterprises have asked the government to instruct the banking system to extend the debt payment deadline, cut interest rates, and provide unsecured loans.

Tran Chung


Hanoi symposium spotlights “Dien Bien Phu in the air” victory

The “Dien Bien Phu in the air,” a major victory leading to the end of the war against US forces 50 years ago, was spotlighted at a national symposium in Hanoi on December 9.

Vietnam International Travel Mart kicks off in Da Nang

The Vietnam International Travel Mart (VITM) Da Nang 2022 opened in the central city on December 9.

PM: Vietnam appreciates cooperation with Luxembourg

Vietnam always attaches importance to comprehensive cooperation and partnership with Luxembourg, a founding and important member of the EU, said Prime Minister Pham Minh Chinh during talks with his Luxembourg counterpart Xavier Bettel on December 9.

Prime Minister visits Luxembourg Stock Exchange

Prime Minister Pham Minh Chinh on December 9 toured the Luxembourg Stock Exchange (LuxSE), the first in the world to have a platform dedicated to green securities and currently listing half of the world's green bonds.


Human rights promoted in labour, social, gender equality aspects

Vietnam Airlines reopens regular flights to China from December 9

Vietnam Airlines' flight VN 502 departed from Ho Chi Minh City to Guangzhou at 9:55 am on December 9, marking the carrier's first regular commercial flight between Vietnam and China after a nearly three-year disruption due to the COVID-19 pandemic.

Trial on Alibaba Company’s scam, money laundering begins

The People's Court of HCM City, on the morning of December 8, opened the Court of First Instance on the case of fraudulent appropriation of property and money laundering at Alibaba Real Estate Joint Stock Company, referred to as Alibaba Company.


VN attracts nearly US$500 million in start-up ecosystem in 9 months

Opening the Internet in Vietnam: a brave decision

Former Deputy Prime Minister Nguyen Khanh said Vietnam could have opened the internet sooner but it needed to prepare well in technique, human resources, policies, and more importantly, ideology.

'Make in Vietnam' instrumental in going global

Digital technology industry as a bright spot in the economy with an industry-wide revenue of $148 billion, up 10 per cent against 2021.

'La Nina' likely to cause severe cold weather next month for third year running

The average temperature this month could be lower than the previous years by half a degree. Temperatures next month will be similar to previous years.

Two Vietnamese films up for consideration at Oscars

Two Vietnamese movies have been named among Animated, Documentary and International Features nominees for consideration at the 95th Academy Awards (Oscars), as announced by the Academy of Motion Picture Arts and Sciences (AMPAS).

The firefighters who died for others

Four months have elapsed since the day the three firefighters of the Cau Giay District Police in Hanoi sacrificed themselves in service, but their parents, wives and children’s sadness has not subsided.

Reviving investors’ confidence key to restoring bond market health: experts

While it is urgent to tackle the liquidity problem, a fundamental solution is regaining investors’ confidence and stabilising the corporate bond market, experts said.

Prime Minister starts official visit to Luxembourg

Prime Minister Pham Minh Chinh landed at Findel Airport this morning (local time), starting his official visit to Luxembourg at the invitation of Luxembourger Prime Minister Xavier Bettel.