Business Opportunities In Vietnam After The Financial Turmoil

Inflation has soared to 25%, foreign exchange reserves are lower than total foreign debt, Vietnam shield has depreciated and stock index has fallen by nearly 60%.

Did Vietnam's financial turmoil hurt Wenzhou's private sector?

How should Wenzhou's private enterprises "quickly heal"?

According to Wenzhou customs statistics, last year, our city exported $about 75000000 to Vietnam and imports amounted to US $about 16000000.

In the first 5 months of this year, the export volume of our city to Vietnam was US $59 million 260 thousand, an increase of 109.54% over the same period last year, and the import volume was 13 million 492 thousand and 400 US dollars, up 451.4% over the same period last year.

Our products exported to Vietnam are mainly ships, liquefied petroleum gas, leather processing machinery, synthetic fiber yarns, sewing machines, low voltage electrical appliances, etc. the commodities imported from Vietnam are mainly raw materials such as raw hide, coal and natural rubber.

According to Zou Qinghai, President of the Zhejiang chamber of Commerce in Vietnam, the Zhejiang chamber of Commerce in Vietnam now has more than 500 member units, 1/4 of which are from Wenzhou.

Inflation has soared to 25% and the Vietnamese shield has depreciated.

Although Vietnam's financial crisis has brought a series of problems, such as the dramatic reduction in Wenzhou's private trade volume and the sharp increase in employing costs, it has not dampened Wen's long-term confidence in Vietnam's economy.

Zhang Liming, the responsible person of Qianjiang Investment Management Co., Ltd., told reporters that when they attended the tenth session of Zhejiang trade fair in Ningbo a few days ago, they introduced the Vietnam China Longjiang economic and trade cooperation zone invested by their company.

Many customers are very interested in coming to know the consultation.

Zhang Liming said that the Vietnam China Longjiang economic and trade cooperation zone is still in the process of construction. The financial crisis will increase the cost of construction. But in the second half of the year, the Vietnamese economic situation should be better when it inviting large scale investment, so they are more optimistic about Vietnam's economic prospects.

It is reported that despite many problems in Vietnam's economy, there is no Wenzhou enterprise ready to withdraw from Vietnam, and even some Wenzhou's import and export companies have decided to offer relevant preferential measures to help them tide over the difficulties in Vietnam's local distributors.

For Wenzhou private enterprises how to protect themselves in the financial turmoil in Vietnam, Liu Ting, deputy director of Wenzhou foreign trade and Economic Cooperation Bureau, pointed out that for Wenzhou private enterprises, we should pay enough attention to financial risks. Enterprises should learn to avoid risks by means of exchange rate levers and other financial means. For example, some enterprises use the US dollar or RMB settlement to better avoid the risk caused by the depreciation of the Vietnamese shield.

In addition, under the current economic background of Vietnam's high inflation, the advantage of low cost manufacturing has been weakened, and enterprises must control their own cost in time.

Liu Ting said: "judging from the long-term investment, Vietnam's current financial turmoil should not be affected.

After the crisis, business opportunities will follow, and Wenzhou's private enterprises will not be withdrawn from difficulties. The market position and social image of Vietnam will be greatly improved.

Therefore, Wenzhou enterprises should actively face the crisis and support the Vietnamese people to tide over the crisis at an early date.