Implementation status

Along with the remarkable economic growth today, the industry has invested large industrial fans and expand the scale of production, but the price of raw materials for production conversion price ascending numbers, so the risk loss of customers and difficult to recover capital investment becomes an urgent problem. There are a number of enterprises to reduce production, 50% of exports, even accepting lost business due to raw material price rises too high. Once the raw material price increases lead in product price increases led to the value of deficit reduction.

Exports fell sharply

The manufacturing unit of electric fans to know the price of raw materials from last year has started to increase and the early months of 2006 continued to increase. Until this time, the price of copper has increased from 50% to 60% (sometimes even up to 80%), plastics increased from 40% to 50%, steel by more than 10%. Most businesses have to adjust the price increased from 10% to 30%. Rise above not only do domestic consumption decreased export of many businesses is difficult. Export turnover decreased to 50%, even now almost lost export markets. And yet, the businesses in the country from foreign competition in terms of prices from the countries in the region, especially China is priced about 20% lower.

Difficult to recover capital

In the past few years, the export of industrial fans of local businesses have many advantages, the high growth rate of 20% - 30% / year due to good quality, diverse categories. Many businesses invest, expand production scale. Cophaco investing installation of additional production lines worth up to $ 30,000 to increase capacity three-fold aim of large orders to export 20 billion, with a capacity of 500,000 / year, the later this year is expected to go into operation. But the price of raw materials from last year and the first months of the year increased Vu Vu has pushed prices higher, domestic and foreign customers losing. The company has invested huge headache for the bank loan, while the production business is in trouble.

Le Tri Bao, Director Lidico, said the reason fan power of foreign goods cheaper due to they actively source material, even some countries producing raw materials. While the electric fan industry of what we must also feed each shipment should always be disadvantaged on price.

To help the domestic electric fans more active in export business that the government should have specific plans for raw materials to be stable in the long term, while creating domestic resource help businesses source raw materials at reasonable prices.

State enterprises also propose should help them in finding export markets (other countries do very well at this stage). For years the business sector electric fans in the country to swim to the world market, mainly by through intermediary traders Taiwan or Thailand, only a small number of exporters directly.