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Al Jazeera English | Nov 2
Domestic concerns have of course of eclipsed foreign policy in the race to the White House. Even the third presidential debate, which focused on ...
And heading south, Vietnam is also worried about the effects of the EU debt crisis. The wood products industry is expecting exports to grow as much as 12 percent this year, thanks to higher demand in emerging markets. But exports to the European market have drastically declined, making business owners that cater to the continent very nervous. VTV4 tells us more.
In seven central provinces of Binh Dinh has 80 percent of its wood products exported to Europe. Tri Tin Company is one of the enterprises with the largest timber production in Phu Tai industrial zone. However, the outdoor wood furniture exports to the European market has declined since 2012. Despite the current situation, Tri Tin Company is still seeking orders from Europe, while many businesses in Binh Dinh reduced or stopped their production altogether.
Nguyen Van Thong, Manager, Tri Duc Ltd Company:
Outdoor furniture isn't a necessity. Some people tend to withdraw their purchases in the light of recent economic difficulties. Demand for this product has declined rapidly in Europe.
The European markets account for 80 percent of export of wood products in Binh Dinh province. However, orders from this market have been declining gradually since the beginning of 2012. Export turnover of Binh Dinh wood products only reach 75.2 million US dollars. The decrease of 15 percent compared to this time last year.
Nguyen An Diem, Chairman, Association of Timber and Forest Products:
Europe's bad debt crisis has had direct impact on middle-income earners. While outdoor furniture mainly targets middle- to upper-class in Europe. Consequently, consumption for this product has been reduced in the recent months.
Europe's public debt crisis has had major impact on the outdoor furniture export industry in Vietnam. Export constraints accompanied with rising costs for businesses making export of wood products even more difficult. Many enterprises in Binh Dinh have modified their production and invested in manufacturing artificial wood, such as plywood, as a solution to their current situation.
The Vietnamese government is suffering too. Monthly tax revenues are down by 3,450,000,000,000 Vietnamese dong. That sounds like a lot, but it's only 164 million US dollars.