VN: Getting More Difficult to Export Goods to China

[2009-06-17]

Vietnamese goods on their way to China have continuously gotten stuck over the last one month. Businessmen say that trade with China across the border has become more difficult than ever.

China dealing with imports with heavy hand

Lying stretched out in the cabin of a container carrier, Tran Trung Tam, a vehicle driver, has been waiting for goods from Tam Binh fruit wholesale market in Thu Duc district for the past week.

"The goods owner hesitates to send another consignment of fruit because he heard that fruits are getting stuck at Tan Thanh border gate," Tam said, although he could not explain exactly why fruit is having a problem getting across.

China, it seems, has been checking imports of all goods more carefully in the past month.

Le Xuan, Director of the Department of Agro-Forestry Product Processing and Salt Industry, on June 10 said that in the last few days, exports of rubber and seafood going to China met a lot of difficulties because of strict regulations on food safety.

Seafood exported through Dong Xing border gate has to bear strict examination for food safety. More than 40 tonnes of goods have been rejected because the products did not meet China's requirements.

"In general, it took just a few days to export goods across the border gate. But now, vehicles have to wait seven days to go through," Tam said, adding that this has made goods owners incur heavy losses and many dare not sell goods across the border gate at present.

Chinese businessmen have been taking advantage of the deadlock at the border gate to force prices down. In many cases, the prices of dragon fruit drop by 50 percent after container vehicles are at the border gate for five days.

Businesses nothing to do except wait

As of July 1, under new regulations, Vietnamese fruit exports (watermelon, longan, litchis, bananas and dragon fruits) have to be accompanied by documents verifying their origins before they are allowed into China.

Experts have said that Vietnamese fruit exports may face even more difficulties after July 1. A lot of dragon fruit exporters may have to halt exporting products to China.

However, to date, concerned agencies have not come up with any solution for the problem.
Source: 21food.com
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