Plastic exports to Europe slump amid six-month euro slowdown

Jul 16th at 13:32
16-07-2015 13:32:05+07:00

Plastic exports to Europe slump amid six-month euro slowdown

Plastic exports to the European market have felt the effects of the continuous decline of the euro over the past six months.

 

"Our profit from the European market in the first half of this year fell by 10 per cent," said director of a plastic company in Ha Noi.

He said that his company's European partners asked them to reduce their price but he couldn't due to the high cost of raw materials. Their partners then reduced orders from 5,000 tonnes of plastics to 3,000 tonnes, he added.

A representative of Nam Thai Son Import - Export Joint Stock Company, said that the downtrend of the euro affected his company because the company signed contracts with partners when one euro exchanged for US$1.3. At present, the exchange is around $1.1, causing big losses for importers who are now rescheduling orders or changing to other commodities, the representative added.

The online newspaper Vnexpress quotes Tran Viet Anh, deputy chairman of the HCM City Rubber – Plastic Manufacturers Association, saying that, beside the loss from declining orders, enterprises now have to face competitiveness from more local suppliers in Europe.

European plastic producers might be able to provide products at a competitive price since the euro is low.

To overcome the new challenges, the chairman recommended Vietnamese enterprises, apart from expanding to other markets or their market share, seek cheaper materials and make changes in product structuring to lower the price for the European market, which is vital to Viet Nam's plastic industry.

Estimates for export turnover in the plastic industry are over US$1 billion for the first half of the year. According to the association, the European market accounted for 60 - 70 per cent.

The industry saw a year-on-year increase of 10.3 per cent as turnover hit $4.2 billion for the first half of the year. The industry earned $9 billion last year.

In the larger picture, growth also depends on how Viet Nam competes with China, Japan and ASEAN countries. Exports to the European market fell across the East and South East Asia region. 

bizhub



NEWS SAME CATEGORY

Shrimp exports to UK rise sharply

Vietnamese shrimp exports to the United Kingdom have registered a strong growth even as shrimp exports to the European Union have been registering a declining trend...

HAGL imports more than 1,300 tonnes of sugar

The Hoang Anh Gia Lai Group imported from Laos more than 1,300 tonnes of sugar worth US$803,320 in June through the Bo Y International Border Gate in the Central...

Vehicle users ignore E5 bio-fuel despite widespread availability

E5 grade bio-fuel has been largely ignored by users though it has been available in seven cities and provinces since December 2014 and the Government is set to sell...

In Vietnam, retailers offer fuel freebies to lure customers

What is better than going home after drinking beer or buying hi-tech gadgets with your motorcycle or car refilled with free gasoline?

Gold prices fall; people still not interested

Gold prices fell further in the Vietnamese market on Monday, with one tael, or 1.205 ounces, of state-owned SJC gold selling for VND34 million (US$1,557.1).

Domestic steel consumption up

The domestic steel industry saw strong growth in consumption in the home market in the first half of this year, according to the Viet Nam Steel Association (VSA).

Local brewer disputes hefty bill for tax arrears

The proposal by the State Audit Office of Vietnam to collect $18.7 million in tax arrears from Saigon Beer-Alcohol-Beverage Joint Stock Corporation has been met...

Cement consumption up

Domestic cement consumption has improved even as Vietnamese cement exports have been faced with competitive pressure from neighbouring countries.

VN climbs footwear ladder

 Viet Nam is now the third largest exporter of footwear in the world, and it can increase its exports further by using opportunities provided by free trade...

Cement consumption up

Domestic cement consumption has improved even as Vietnamese cement exports have been faced with competitive pressure from neighbouring countries.

Commodity prices


MOST READ


Back To Top