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Many forest products exporters have to lay off workers due to no new contracts. Photo N.T |
The global financial crisis and economic regression have badly affected export companies, particularly forest products exporters. Some have stopped operating as they couldn’t export more products and have new contracts.
Many difficulties
Reports released by the province’s Industrial Zones Management Board and Association of Timber and Forest Products showed that many forest products exporters in Binh Dinh have faced difficulties. They have had no plan until now.
“At present, over 85% of forest products exporters in Phu Tai and Long My industrial zones have no new contracts,” said Ho Van Hoa, deputy head of Binh Dinh IZs Management Board. “Nearly 20 factories have curtailed the production and over 2,000 laborers have lost their jobs so far.”
“Prices of products exported to the US, Japan, and European countries have dramatically reduced, but they still don’t willingly import products,” said vice chairman of the province’s Association of Timber and Forest Products. “The partners also set no deadline for the deliveries and didn’t want to sign new contracts.”
Forest products exporters will continue to face many difficulties in the coming time as the global economy has showed no sign of recovery, according to the exporters’ evaluation.
Many exporters worried some importers set technical barriers to restrain the import of forest products due to the reduction of consumer spending.
Support for recovery
Many measures have been implemented to help companies overcome hardship. The 4% interest rate subsidy, for example, encouraged many exporters to get bank loans to improve technologies and train workers.
“The company has carried out many economy drives but still maintained the quality,” said vice director of Phu Hiep Timber Co., Ltd. “We got a bank loan at low interest rates to equip advanced technologies and improve the employees’ skills, aiming to produce high quality products with low costs.”
Provincial Chairman Nguyen Van Thien and relevant bodies also held a meeting with forest products exporters in Binh Dinh to help them solve difficulties.
Thien steered the province’s Department of Industry and Trade to frequently update and exchange the information with businesses to promptly solve challenges.
The province’s Association of Timber and Forest Products must cooperate with functional bodies to manage the operation of businesses to work out measures.
A delegation headed by director of State Bank of Vietnam’s branch in Binh Dinh was set up to support businesses, aiming to help them overcome hardship in the coming time.
Also, Binh Dinh planned to offer free vocational training and trade promotion for businesses, creating favorable conditions for them to seek new markets.
Thien called on exporters to make every effort to overcome difficulties, stabilizing the production. He also affirmed the province always supports businesses to solve problems.
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