The number of foreign traders entering Vietnam to collect goods en mass
have increasingly risen and their activities are getting more complicated, the
Ministry of Industry and Trade admitted at a meeting Friday.
The foreign traders, mostly from
China, have been purchasing large quantities of seafood and agricultural
products, helping generate jobs and incomes for local farmers, but some left
negative impacts on the local market, said Vo Van Quyen, head of the ministry’s
Domestic Market Agency.
“Some contributed to the increase
in prices of the agricultural products, affecting the sources of raw materials
of local manufacturers, with some defaulting on their seafood purchases,”
elaborated Quyen.
He added that many foreign
traders have bought products regardless of their quality, which have reduced
the reputation of Vietnamese goods.
“Moreover, the economic
instability caused by the foreign traders can lead to security, social safety
and political issues,” he warned.
Chinese traders in particular
Pham Dinh Thuong, deputy head of
the ministry’s legislation department, also warned that the phenomenon of
Chinese traders swindling local farmers and defaulting on debts has been common
since as early as the 1990s.
The traders usually entered
Vietnam on a tourist visa, and would begin to buy local products at high prices
to build trust.
“Then in the next purchases, they
would order large quantities, and vanish without clearing the payment,” he
said.
Putting them to court is
impossible as most of the traders do not register their business with local
authorities, he added.
The ministry thus said that it is
developing new rules to tighten management over the traders, and protect local
farmers.
“Traders entering Vietnam by
tourist visa will come under strict scrutiny if they create any buying
networks, or purchasing products without contracts,” said Quyen.
Meanwhile, Thuong said the
management regulations should be tightened in a way that honest traders are
still able to do business in Vietnam.
“Purchasing activities may slow
down under the tightened rule, which will cause disadvantage to farmers,” he
admitted.
“What’s important is local
authorities should be aware when foreign traders enter the country, and able to
prevent any illegal activities from them beforehand.”
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