Many coffee
exporters are facing big debts but they still are hiding the debts for fear
that it would affect business, Nguoi Lao Dong newspaper reported.
The newspaper reporter on March 26 came to the headquarter of Tay Nguyen
Coffee Investment Import Export Joint Stock Co (Vinacafe Buon Me Thuot).
Despite March 26 was Monday, all leaders were absent and the landscape was
quite deserted.
Financial
difficulties
Vinacafe Buon Me Thuot used to be awarded to be the world’s largest
coffee exporting company but its overdue debt is more than 1.6 trillion dong
now.
In a phone talk with Nguoi Lao Dong newspaper, Mr Vu Duc Tien—General
Director of Vinacafe Buon Me Thuot admitted that enterprises are struggling a
lot of business hardships so coffee purchase cannot meet the requirements. “If
selling whole assets of the company, debt repayment may be done”, he said.
A source of Nguoi Lao Dong said that some shareholders of Vinacafe Buon
Me Thuot requested the firm’s leaders to provide statistics of loss and profit
but the request has not been fulfilled. According to Dak Lak Department of
Industry and Trade, currently, domestic coffee companies are facing the
financial difficulties due to high bank loan rates and low competitive strength
compared with foreign invested firms.
Major export item of Dak Lak province is coffee. In the first three
months of 2012, the province’s total export turnover gained US$180 million,
down 10% on year and achieved 22.85% of the year’s plan.
Hard to survive
By the end of 2009, Dak Lak had 43 bankrupt enterprises and business
households who could not pay 300 billion dong and 3,000 tons of coffee.
Typical case is Truc Tam Trading Co Ltd (Buon Ho Township, Dak Lak).
The company’s owner is the husband-wife couple Dinh Ngoc Truc and Truong Thi
Tam escaped to the foreign country with hundreds of billions of dong of banks
and people. INEXIM Investment Export and Import Joint Stock Co also suffered
the similar debt.
Mr Nguyen Xuan Huong—Head of Ea H’leo District Infrastructure Economic
Department was quoted as saying that 10 firms in the district became bankrupt
with total debt of around 100 billion dong, leading to larger number of people
losing assets and facing stockpiled debts.
According to Dak Lak provincial People’s Committee, because two sides
[coffee companies and farmers] did not sign deposit contracts or other papers
ruling on duties and responsibilities so seeking clues for fraud cases became
difficult.
Some coffee firms made use of gaps in rules to cheat people. Mr Nguyen
Tuan Ha, Vice Director of Dak Lak Department of Industry and Trade proposed the
people’s committee to have specific regulations on coffee deposit operation.
VietBiz24
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