Businesses have been trying every way to turn
the inventories into cash to get money for re-investment.
In
recent days, the head office of MM, a media company in district 2 in HCM City,
has been full of sweets. The company's officers have been busy all the day to
sell the goods.
People
thought that MM has received an order of organising a big event. However, Le
Thi Thuy, director of MM, denied this.
As MM
failed to ask the partner to pay for the event services, despite a lot of
efforts, it decided to receive three trucks of sweets and snacks worth 120
million dong from the partner - a big group, instead of 100 million dong in
cash as agreed by the two sides before.
"I
could not imagine before that such a big group could not arrange 100 million
dong to pay debts," Thuy said.
Finally,
Thuy decided to accept sweets instead of cash, because she was not sure when
the company would have money to make payment, while MM needed money to pay its
staff and pay other service providers.
After
carrying sweets to the head office of the company, Thuy asked her officers to
try to sell the products, wholesaling and retailing, advertise the sale on mass
media, bring goods to groceries or offer to sell on Internet.
According
to Thuy, the company could take back 65 million dong instead of 100 million
dong as it previously expected. However, 65 million dong would be better than
nothing.
The
high inventories have pushed the sweets big group into big difficulties and
forced it to pay debts in goods instead of money. Of course, both the sides suffered
loss in the transaction. The client had to pay the volume of goods with the
value higher than the value of the contract. Meanwhile, the service provider
could not get the whole sum of money it expected.
However,
enterprises have no other choice than... suffering loss. They have been trying
to bargain away goods to clear stocks and get money to maintain production.
The
noisy streets Nguyen Trai, Le Van Sy, Cach Mang Thang Tam in the commercial hub
of HCM City have become the places for manufacturers to display and sell off
inventory goods. The banderoles hung over the pavement shops show the big
discounts of 50-70 percent, which means that customers can buy the goods at
surprisingly low prices. All the supermarkets have offered price discounts for 2000-3000
product items, or offered gifts to buyers.
Inventories big enough to sell until the end
of the year
Dang
Quynh Doan, general director of Viet Thy Fashion Company, has said that the
demand for readymade clothes has decreased by 20-30 percent in comparison with
the same period of the last year. It is estimated that the inventories amount
to 50-70 percent of the sold volumes.
Other
garment companies have agreed with Doan, saying that the volumes of goods at
the shops are now big enough for the sale until the end of the year.
Some
analysts have warned that if the low weak demand cannot be improved, the
products would be enough for sale until the next year.
Producers
understand that it's difficult to sell old products. Therefore, they still have
to make new products, but at moderate levels, while still trying to boost sales
to clear stocks and get back the investment capital.
The
cosmetics and processing food inventories are also very high. deputy general
director of a supermarket chain said he has never seen such a big inventory
volume before.
The
retailer planned to sell a volume of goods within three months. However, only
60-70 percent of the volume has been sold after four months.
Nguyen
Thi Anh Hoa, the owner of Citimart chain, has estimated that the volume of
drinks, processing food and cosmetics kept in stocks has reached tens of
billions of dong.
"A
lot of manufacturers have said they would join any sale promotion programmes to
be launched by our supermarket chain in order to boost sales," she said.
Nguyen
Phuong Thao, director of Maximark supermarket chain, said that some cosmetics
manufacturers now offer big preferences: customers, who buy one product, would
get one more product free of charge. This means that when selling a container
of new goods, the manufacturers would be able to clear one container of
inventories.
VietNamNet
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