Imports coming en masse as distributors prepare for Tet sale season

Despite the dollar appreciation which has made import products more expensive, imports still keep flowing into Vietnam. However, only the imports through official channels have increased, while the imports from China across the border have decreased due to the Chinese yuan appreciation.

Imports from China not favored any more

Cuong, who specializes in importing electronics from China (MP3, headphones, cameras for family use), complained that the sale has been going very slowly due to the Chinese yuan appreciation. Cuong has to reduce the import frequency and import volume. “Now I make only one shipment every two weeks, while the import volume has been cut by a half,” he said.

According to Cuong, the yuan appreciation has made imports from China more expensive by 10 percent, while it is now the low sale season.

The owner of Thanh Lam Shop which specializes in wholesaling footwear products at An Dong Market in HCM City, said the footwear price has increased by tens thousand dong per pair .

The businesses which specialize in importing toys from China (Chinese toys once held 70-80 percent of Vietnam’s market share), have also said they have stopped importing toys from China. The higher sale prices have made the sale slower, while Government agencies have tightened control over the imports. Only the products with CR stamp can circulate on the market.

Imports through official channels still on the rise

Meanwhile, other importers say they are still pushing up the import, even though the imports have become more expensive.

Representative from a company specializing in importing home appliances from China, Japan, Thailand and Malaysia, who asked to be anonymous, said it is now the right time to store goods for Tet sale season.

He admitted that importers are suffering from the dollar appreciation. “We usually make payment for import contracts after 1-3 months after the signing dates. Therefore, we have to pay additional money when making payment for the contracts signed three months ago,” he said.

Supermarkets and retailers have also confirmed that suppliers have offered to provide products to them with the volumes much higher than the previous year.

Nguyen Thi Anh Hong, General Director of Maximart told Thoi bao Kinh te Saigon that enterprises are rushing to import goods. “The import volume was very low last year, but the situation is quite different now. I think the import volume has increased by tens percent” she said.

Nguyen Thi Quyen, Deputy Director of Thien Nam Hoa, which owns Thien Hoa Home Appliance Centre, has also confirmed that the supplies remain profuse.

Importers say they are considering raising sale prices. However, they have been warned that they need to think carefully before doing that, because the purchasing power is still weak.-Thoi bao Kinh te Saigon

Tags: vietnam retail industry, Vietnam retail market, Vietnam Tet 2011