| Real Estate | Cars & Motos | Jobs | Good Deals | Pets | Holidays | Business | Services | Vietnam Info |
 The First International Market Place in Vietnam! |
Move&Buy Vietnam: Buy, Sell, Find a Home, Find a Job... and much more! |
Home > Vietnam News List 
June 18, 2008
VietNamNet Bridge – As producers and traders are now seriously lacking capital, they are trying all possible methods to get capital. Commodity buyers are trying to delay payments, while suppliers are trying to limit deferred payments.
Nguyen Thi Hai, Director of Hanoi Supermart, said that previously, enterprises tried to borrow money from banks to make payments for commodities on the spot, so that they could enjoy preferential discounts of 1.5-2%.
Moreover, if the enterprises bought commodities in big quantities, they could enjoy additional discount rates of up to 3-4% in total. However, enterprises now have to reconsider this, as the bank loan interest rate has soared to 2% per month. Enterprises cannot sell consignments of commodities and get money for three months.
Keeping capital intact now the top priority
Pham Thi Nguyen Thanh, Business Director of Thanh Cong Textile and Garment Company, said that the biggest problem now in product sale is late payments by clients. A lot of agents deliberately delay payments so that they can use the sums of money for other business.
Thanh said that the company has reduced the maximum deferred payment term to seven days. Only big distributors that purchase several billions VND worth of products can make deferred payment within 30 days of the day of deliveries. However, the distributors can only enjoy the 30-day deferred payment for 10% of total sales.
Thanh well understands that the stricter requirement on payment date will set limitations on distribution network development and purchasing power. However, she said that preserving capital must be the top priority now.
“We accept slower growth, but this will be sustainable growth. Besides, by doing so, we will be able to find the most reliable agents,” Thanh said.
Le, the owner of a wholesale footwear stall in An Dong market in HCM City, said that the overly high interest rates have been making trade sluggish. Previously, her clients were ready to pay immediately when they got deliveries in order to enjoy prices VND500-1,000/unit lower. However, as purchasing power has been decreasing dramatically, both wholesalers and retailers have to consider thoroughly whether to use money to make trade or use the money to lend.
Raising discount rates and giving preferences to cash payers
Producers and suppliers of cosmetics, dishwashing liquid and consumer plastics previously offered the discount rates of 2.5-5% at maximum to wholesalers in markets, but now they have had to raise the discount rates to 4-8%.
Nguyen Hai, the owner of a dishwashing liquid workshop in district 6, HCM City, said that he has to offer bigger discount rates in order to stimulate wholesalers to pay immediately.
“As input material prices have been increasing sharply, I try to persuade wholesalers to accept low increases of discount rates, and in return, I have promised to keep the prices unchanged for the next three months. This helps both of us sell goods,” Hai said.
Other companies are now offering additional bonus discount rates in order to encourage buyers to make payment right on delivery. For example, when buying commodities, buyers get the commission of 5% of the bills’ value. If they pay in cash right on delivery, they will get an additional 1-3% (depending on the purchase turnover).
Mai Tan Dung, Business Director of Lan Hao Company, said that buyers now can get the discount rates as high as 8-15% if they pay right on delivery.
High interest rates changing selling methods
June 18, 2008
VietNamNet Bridge – As producers and traders are now seriously lacking capital, they are trying all possible methods to get capital. Commodity buyers are trying to delay payments, while suppliers are trying to limit deferred payments.
Nguyen Thi Hai, Director of Hanoi Supermart, said that previously, enterprises tried to borrow money from banks to make payments for commodities on the spot, so that they could enjoy preferential discounts of 1.5-2%.
Moreover, if the enterprises bought commodities in big quantities, they could enjoy additional discount rates of up to 3-4% in total. However, enterprises now have to reconsider this, as the bank loan interest rate has soared to 2% per month. Enterprises cannot sell consignments of commodities and get money for three months.
Keeping capital intact now the top priority
Pham Thi Nguyen Thanh, Business Director of Thanh Cong Textile and Garment Company, said that the biggest problem now in product sale is late payments by clients. A lot of agents deliberately delay payments so that they can use the sums of money for other business.
Thanh said that the company has reduced the maximum deferred payment term to seven days. Only big distributors that purchase several billions VND worth of products can make deferred payment within 30 days of the day of deliveries. However, the distributors can only enjoy the 30-day deferred payment for 10% of total sales.
Thanh well understands that the stricter requirement on payment date will set limitations on distribution network development and purchasing power. However, she said that preserving capital must be the top priority now.
“We accept slower growth, but this will be sustainable growth. Besides, by doing so, we will be able to find the most reliable agents,” Thanh said.
Le, the owner of a wholesale footwear stall in An Dong market in HCM City, said that the overly high interest rates have been making trade sluggish. Previously, her clients were ready to pay immediately when they got deliveries in order to enjoy prices VND500-1,000/unit lower. However, as purchasing power has been decreasing dramatically, both wholesalers and retailers have to consider thoroughly whether to use money to make trade or use the money to lend.
Raising discount rates and giving preferences to cash payers
Producers and suppliers of cosmetics, dishwashing liquid and consumer plastics previously offered the discount rates of 2.5-5% at maximum to wholesalers in markets, but now they have had to raise the discount rates to 4-8%.
Nguyen Hai, the owner of a dishwashing liquid workshop in district 6, HCM City, said that he has to offer bigger discount rates in order to stimulate wholesalers to pay immediately.
“As input material prices have been increasing sharply, I try to persuade wholesalers to accept low increases of discount rates, and in return, I have promised to keep the prices unchanged for the next three months. This helps both of us sell goods,” Hai said.
Other companies are now offering additional bonus discount rates in order to encourage buyers to make payment right on delivery. For example, when buying commodities, buyers get the commission of 5% of the bills’ value. If they pay in cash right on delivery, they will get an additional 1-3% (depending on the purchase turnover).
Mai Tan Dung, Business Director of Lan Hao Company, said that buyers now can get the discount rates as high as 8-15% if they pay right on delivery.