BACO VIETNAM
The Vietnamese side made a statement clarifying the production situation, raw material planting situation, and consumption situation of the cassava industry recently.
On the Chinese side, we analyzed market information, analyzed developments and trends, and actively discussed factors affecting prices such as (foreign exchange rates, shipping charges, etc.). The Vietnam Cassava Association and Vietnamese businesses attending the conference exchanged information and dialogue with the China Cassava Association and more than 130 Chinese customers, the main summary is as follows:
(1). Weak demand for cassava starch: The price of corn starch is cheap, about 1,200 VND/kg lower than cassava, so customers buy more cassava starch; It is currently the hot season so the demand for cassava starch has also decreased, so the market price has dropped.
(2). Regarding quality: The Chinese side evaluates Thai cassava starch as stable in both quantity and quality. The stability of the quality of Thai cassava starch products is more uniform than Vietnamese cassava starch. In addition, customers also mentioned the product's outstanding quality. In Thailand, there are many products that are outstanding in quality (for example, goods that charge commission: Current selling price is 560 USD/FOB Bangkok), in the current situation, the product should be outstanding to be easy to consume. The Chinese side emphasized and suggested that Vietnamese factories should pay attention to the issue of stable quality and outstanding products.
(3). Advantages: Vietnam and China have a long border, convenient for exporting goods by land and sea very quickly to China, so customers are interested in buying products from Vietnam.
On the side of the Chinese Cassava Association, Mr. CHEN MING YU - Vice Chairman of the Chinese Cassava Association informed the cause and main reason why a number of traders were arrested recently as follows:
- Chinese traders violated trading regulations, according to regulations, they traded 8,000 yuan/day/person, the actual amount did not comply with the above regulations.
- Selling goods outside the Pingxiang area and not paying tax. According to regulations, when importing goods as border residents, they pay 4% tax and can only be consumed in the area of Guangxi province and Yunnan province. However, traders bring goods out of Guangxi and Yunnan to sell but do not pay the additional 9% tax, so this is a violation of regulations. The trader violated China's tax regulations when taking goods out of the regulated area.
- Payment is not in accordance with regulations, payment must be made from the accounts of border residents to Vietnamese sales units, but Chinese merchants pay to intermediary accounts that are not residents' accounts border.
Vietnamese side: Mr. Nghiem Minh Tien - Chairman answered frankly and affirmed that: Tapioca starch from Vietnam has a clear origin and is completely legal, and is accepted by the Customs of the two countries for import-export clearance through the border gate. The arrest of Chinese traders has nothing to do with the origin of goods or any violations committed by Vietnamese businesses, Chinese businesses are completely assured.
Chinese Business Opinion: Chinese businesses mentioned some brands with poor quality such as plasticity, moisture, etc. of some Vietnamese factories that are not as good as the original, they are very worried about that... They plan to find other brands or buy Thai products instead, if these businesses do not improve quality.
The Chairman of the Vietnam Cassava Association acknowledged the comments of Chinese Enterprises and will inform the Vietnamese factories to find the cause and provide solutions.
The conference listened, and the Association of both sides received opinions to have good cooperation and development for the cassava industry of the two countries. It is expected that in June 2024, through the Chinese Cassava Association and the Vietnam Cassava Association, we will work with the Pingxiang Government and Pingxiang Customs to assess the situation and promote border trade.
(Source: Vietnam Cassava Association)
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