Yen devaluation troubles exporters
Yen devaluation troubles exporters
The Japanese yen has dropped by nearly 20 per cent over the Vietnamese dong in the last six months, leaving exporters worried about further losses if the currency continues to be devalued.
Cao Van Sang, general director of Sai Gon Plastics JSC, who exports plastic parts used in airport trolleys, said his company had agreed to reduce payments on contracts by 0.02 per cent, with the condition that payments be made in US dollar.
Previously, Japanese customers had wanted his company to receive payments for contracts in either yen or dong, he said.
Six months ago, the exchange rate fell from VND246.05 to VND205.34 on May 21, a fall of VND40.71 per yen.
The yen's devaluation has also affected Vietnamese exporters of farm produce.
Nguyen Pham Thanh, general director of Highland Dragon Co, which is based in Song Than IP No 1 in southern Binh Duong Province, said that local companies that manufacture canned tuna for the Japanese market had been hit by the yen's devaluation.
"The price of imported goods in general, and tuna products in particular, rose sharply in the past several months. This caused Japanese importers to re-consider signed import contracts," Thanh was quoted by Tuoi Tre (Youth) newspaper as saying.
Nguyen Van Kich, general director of the Hau Giang-based seafood joint-stock company Cafatex, said that Japanese buyers of Cafatex's shrimp were facing difficulties because selling prices had risen because of the yen devaluation.
"The price of imported shrimp from Viet Nam to Japan rose by more than 20 per cent. And, on top of that, the devaluation of the yen caused shrimp prices to rise by 40 per cent in the Japanese market," said Kich.
To avoid risks if the yen becomes stronger against other currencies, Japanese importers and distributors have changed their mode of purchasing from long-term contracts for large volumes of shrimp to smaller volumes after selling their stockpiles.
Nguyen Trung Dung, commercial counsellor at the Vietnamese Embassy in Japan, said he was worried about the growth in export turnover of Vietnamese goods in Japan this year.
According to the Trade Affairs Department in the Vietnamese Embassy in Japan, Vietnamese exports to Japan amounted to $3.6 billion in the first four months of 2013.
Major increases in Viet Nam's exports to Japan include a 15 per cent jump in wood products to $234 million.
Footwear exports rose to $121 million from $103 million in the first four months of 2012. Garment exports to Japan reached $697 million in the same period.
The department also reported a slump of $268 million in crude oil, $15 million in coal sales, and a 4.8 per cent drop in seafood exports from Viet Nam to Japan in the first four months of this year.
vietnamnews
