Euro discount means export product to EU os more expensive while the price in dollar is constant. So, many EU importers have asked exporters to reduce prices, otherwise they will stop buying.

Director of a seafood exporter in HCMC in 2010, said the selling price to EU was at $ 2.7 per kg but now it is only from 2.3 to 2.4 USD / kg because customer ask to reduce price as the depreciation of euro. If early 2010, EU customers only spend 1.87 euros to buy 1 kg of fish, now investigating whether the company still sells for under U.S. $ does not change but they have spent over 2.2 euro / kg.

The depreciation of the euro as the debt crisis of European countries but it affects strongly to exporters to this market.. Within five months, the euro was down about 15% of its value against the dollar. This means to get dollars to pay the exporter, the importer must need more dollar.

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To solve this difficulty, according to Mr. Pham Quang Dieu, director of a agricultural market analysis  company, Agromonitor, businesses need to redirect exports to non-traditional markets, emerging markets. That might be the market in Europe as Bulgaria, Romania, Czech, etc with the impressive capital growth in the last year and high potentiality, other regions like the Middle East, China, etc.

Mr. Duong Ngoc Minh, General Director of Hung Vuong stated that businesses can take advantage of the current period in Russia, America, Middle East, etc. While the Russian market is recovering strongly after the reform of export and payment procedures, the demand of the U.S. market will certainly increase after oil spills.

Tran Manh

Source: Tuoi Tre

Translated by Vietfish Community