Enterprises in production season for Tet goods

VCN - Currently, enterprises have resumed operations with about 90% capacity. The atmosphere of production recovery is urgent to serve Tet orders and export orders at the end of the year.
Many enterprises enforced to suspend imports and exports for tax evasion Many enterprises enforced to suspend imports and exports for tax evasion
Enterprises urged to together build community for sustainable development Enterprises urged to together build community for sustainable development
Enterprises in production season for Tet goods
Production activities at Vissan Company. Photo: provided by the company

Efforts to stabilize commodity prices

Along with the return to production after the social distancing measures, the end of the year is also a time for enterprises to accelerate with orders in the peak season of the Lunar New Year 2022.

According to the Board of Directors of Vietnam Animal Products Industry Joint Stock Company (Vissan), the unit planned to invest more than VND754 billion in preparing more than 2,800 tons of fresh food, up 8%, and more than 4,200 tons of processed food, up about 6% over the same period last year in order to supply for market in the upcoming Tet period.

Vissan has recruited more employees, working overtime to produce enough food supply to serve the Tet market, especially items such as Chinese sausages, spring rolls, sausages and some new products such as cooked meat.

Ms. Le Viet Nga, Deputy Director of Domestic Market Department (Ministry of Industry and Trade):

The Covid-19 pandemic in 2021 is complicated and prolonged in many provinces and cities across the country, affecting many economic, commercial and service activities.

Not only that, the pandemic has also reduced the income of many people, so it is expected that purchasing power in the last months of this year will not increase compared to the same period last year, mainly focusing on items of food and essential goods for daily consumption and during the Lunar New Year of the Tiger in 2022.

Therefore, the Ministry of Industry and Trade has directed enterprises and related units to develop plans to serve Tet, proactively review goods supply and demand, preparing goods sources and supply plans, even in the context of the Covid-19 pandemic. Along with that is the deployment and implementation of the program to connect supply and demand, bringing Vietnamese goods to rural, mountainous and island areas. In the event that the Covid-19 pandemic breaks out on a large scale on the occasion of the Lunar New Year 2022, localities, enterprises and even people have experience and plans in ensuring the supply of goods, food and essential necessities.

Mr. Bui Thanh Tung, Deputy General Director of KIDO Group, General Director of Tuong An Oi

Fluctuating world prices lead to serious impacts on Vietnam, causing difficulties in spending. However, the company still boldly plans to produce a large amount of cooking oil to serve the needs of gifts and processing ingredients for families during Tet 2022. The company has prepared the production plan from the beginning of October 2021 to supply enough goods for enterprises and 450,000 sale points of Tuong An nationwide. It is expected that the output of cooking oil launched to the market during Tet this year will increase by 30% over the same period.

Currently, Tuong An has received many orders from enterprises and agencies across the country to prepare gifts for employees and partners during the Lunar New Year.

Similarly, to ensure the progress and volume of orders, Viet Hai Joint Stock Company - specializing in processing seafood products, after reopening, mobilized workers to work overtime from purchasing, processing, packaging, storage.

Enterprises also prioritize importing raw materials, although in the current context that the prices of items are increasing, they have to "struggle" for new partners to buy them.

As a result, enterprises have completed about 80% of the plan. The remaining work from now until Tet is mainly sorting and distributing orders according to delivery time and other arising orders.

However, unlike previous years, enterprises currently only produce to order and have raw materials to accelerate if the market shows signs of improvement at the end of the year.

Ms. Pham Thi Huan, General Director of Ba Huan Joint Stock Company, said that up to this point, they have not yet dared to produce at full capacity. According to the survey, the purchasing power of the market was weak, down about 30% compared to before the pandemic, so the company implemented deep discount programs but the purchasing power was still low.

Previously, the company consumed about 1.5 million poultry eggs per day, but now it sells less than 1 million eggs. Accordingly, the company continues to probe the market and prepare sources of Tet goods.

Although production costs increased, it led to an increase in product prices, but increasing at the allowable level according to market stabilization, during and after the Lunar New Year, the company committed to no shortage of food in this category during Tet, Pham Thi Huan said.

Mr. Phan Van Dung, Deputy General Director of Vissan, said after the pandemic, production costs of some types of raw materials increased by 20-30%. In addition, meeting the full set of safety criteria for pandemic prevention in production and business also caused costs to increase sharply.

However, enterprises were still committed to selling at a market-stabilizing price two months before, during and after Tet to share difficulties with consumers.

Enterprises need support

Enterprises have been busy working overtime for Tet. However, the general atmosphere at many enterprises is quite tense this year because they are both worried about pandemic control and production and sale of Tet products.

A representative of the Food Association of Ho Chi Minh City said that some large enterprises were producing for a month before Tet and a month after Tet, but because purchasing power was very low, market movements were unpredictable and depending on the control of the Covid-19 pandemic, the enterprises did not increase production, and did not dare to develop new products.

Instead, enterprises prepared raw materials and packages, when distributors increased orders or the market flourished, they would immediately accelerate to ensure sufficient supply.

According to the Ho Chi Minh City Department of Industry and Trade, every year, enterprises actively prepared production plan of Tet products. However, due to the great impact of the Covid-19 pandemic, it was forecast that the consumption on the occasion of the Lunar New Year of the Tiger in 2022 would be difficult, so manufacturers were also cautious in investing.

Accordingly, from now until the Tet holiday, the Department of Industry and Trade would focus on stimulating domestic demand. In particular, focus on coordinating relevant departments, sectors and units to closely monitor market movements, supply and demand of goods to actively coordinate with enterprises to ensure a balance between supply and demand of essential products, stabilizing the market and contribute to the implementation of social security work before, during and after Tet.

According to some enterprises, the preparation of goods for Tet was facing difficulties because it was still affected by the Covid-19 pandemic. In particular, imported goods were still entangled because the problem of goods circulation had not been completely solved, so manufacturing enterprises had to balance production costs, find more effective sales solutions, and control internal pandemic control.

The number of infections in Ho Chi Minh City increased again, and the purchasing power was low, recently the Food Association of Ho Chi Minh City proposed solutions to the City People's Committee to support consumer demand stimulus in the last months of the year.

In addition, many enterprises said that they needed capital support to restore production during this golden time. Especially, food enterprises needed loans with preferential interest rates to purchase and stockpile raw materials, auxiliary materials, and finished products to prepare for the production season on Christmas and New Year's Eve.

According to enterprises, recently, a large part of the reserve capital, which had been used by enterprises to maintain a part of production in difficult conditions of the pandemic and social distancing, was nearly exhausted. Therefore, the source of capital to support new loans is very urgent and necessary.


By Thu Diu/ Binh Minh

Related News

Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.
Import tax exemption to benefit domestic ITC industry

Import tax exemption to benefit domestic ITC industry

The information and communication technology sector has grown by 6-9% each year and has often exceeded the country’s GDP growth rate in recent years, attendees were told at workshop held by the Ministry of Information and Communications (MIC).
Exploiting potential markets to increase coffee export space

Exploiting potential markets to increase coffee export space

VCN - Vietnam's coffee industry has gradually affirmed its position when exports for the first time exceeded the USD 4 billion mark in the past year. The results of the first two months of 2023 show that coffee exports have many positives, especially in some markets.

Latest News

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Although holding the number one position in the world in exporting cashew kernels for many years, the position of Vietnam's cashew industry in the world cashew value chain is very small because it mainly exports kernels with preliminary treatment.

More News

HCM City’s industrial production index down 0.9% in Q1

HCM City’s industrial production index down 0.9% in Q1

Ho Chi Minh City’s Index of Industrial Production (IIP) in the first quarter of 2023 declined by 0.9% compared to the same period last year, the municipal Department of Industry and Trade reported at a press conference on April 3.
Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries export value was estimated at 1.85 billion USD in the first quarter (Q1) of this year, a fall of 27% compared to the same period last year due to lower consumption and import demand under the impacts of inflation and economic recession, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Quang Ninh aims to attract quality FDI inflows

Quang Ninh aims to attract quality FDI inflows

The northern coastal province of Quang Ninh has strengthened measures to attract quality foreign direct investment (FDI) inflows, especially from big names in the processing-manufacturing industry.
Exports face many difficulties

Exports face many difficulties

VCN - In the first months of 2023, the absence of export orders plus the downward trend in commodity prices have slowed down trade activities.
Manufacturing enterprises increase their competitiveness thanks to digital transformation

Manufacturing enterprises increase their competitiveness thanks to digital transformation

VCN - Overcoming difficulties in 2023 requires manufacturing enterprises to self-improve and innovate. Digital technology is one of the effective solutions to help manufacturing businesses grow and compete.
32nd Việt Nam Expo promises to boost business linkages

32nd Việt Nam Expo promises to boost business linkages

The 32nd Việt Nam International Exhibition (Vietnam Expo) will take place in Hà Nội from April 5-8 with the participation of more than 500 domestic and foreign enterprieses, the event’s organisers have announced.
Prevention of price risks before news that Indonesia increases rice imports in reserve

Prevention of price risks before news that Indonesia increases rice imports in reserve

VCN - In response to demand signals from key markets such as Indonesia and the Philippines, the Import-Export Department (Ministry of Industry and Trade) suggested that rice exporters actively monitor the market situation and fully assess the opportunities as well as risks to build a trading plan.
Japanese investors highly appreciate Vietnamese property market

Japanese investors highly appreciate Vietnamese property market

Representatives from around 180 Japanese businesses and investors on April 1 attended a Tokyo workshop on Vietnamese real estate, during which many of them highly appreciated the potential of Vietnam’s property market.
Seafood enterprises propose to remove obstacles from exporting to the EU

Seafood enterprises propose to remove obstacles from exporting to the EU

VCN - Seafood enterprises are facing inadequacies in applying for material certification (S/C) and food safety certificates (H/C), which affects the production and export of seafood to the EU.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.
Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Looking back to 2022, while the export turnover of the cashew industry reached US $ 3.08 billion, the import turnover of raw cashews consumed US $ 2.678 billion.
Mobile Version