Cashew enterprises are pushing their limit to produce and trade

Vietnam’s cashew industry is in dire need of support policies from the Government upon confronting the complicated situation of Covid-19.

Difficult production and container rental full of risks

According to the information from cashew nut processing and exporting enterprises, in the face of the complicated situation of Covid-19, especially localities that are tightening social distancing according to Directive 16 of the Government, causing them to face a series of difficulties in terms of production organization, goods circulation,… Many businesses only operate in moderation, some even stop operating.

As shared by Mr. Cao Thuc Uy, Director of Cao Phat Co., the company in particular and the cashew industry in general is facing difficulties in ensuring production activities while strictly implementing "3 on-spot" in accordance with the regulations.

This is an unprecedented event that causes confusion to businesses in arranging accommodation and meals for hundreds of employees because the majority of cashew industry workers are women. Not to mention, the company has to bear a large fee from the living expenses of employees to testing fees, making production costs doubled but labor productivity remains unchanged, even shows signs of lacking.

“Previously, the Company had 650 regular employees, now only 300 employees agree to stay, so the company’s operating capacity is less than 50%, leading to delay in deliveries for signed contracts. However, thanks to the prestige, the partners shared difficulties with the Company's situation and agreed to extend the delivery time. Currently, the company pushing the limit just to operate ...", said Mr. Cao Thuc Uy.

According to My Le Co., Ltd in Binh Phuoc, which is also in a similar case, the traffic problem is also a concern as the company is located quite far from Cat Lai port, so in order to bring goods from the company to the port, the company has to go through many localities, but the situation in some places is making things difficult. On the other hand, the shortage of empty containers and high freight rates have also significantly affected the company's production activities.

Not only large enterprises but difficulties are also "cornering" small and medium cashew nut processing enterprises.

As informed by Ha Hung Phu Import-Export Co., Ltd (Tan Phu district, Dong Nai province), every day the company processes about 3 tons of raw cashew nuts, creating jobs for nearly 30 local workers. However, since the appearance and outbreak of Covid-19, the company has been severely affected.

“Compared to the pre-epidemic period, the selling price has been sharply reduced now; The company’s processed cashew nuts output also decreased by 30%. Our unit is trying to overcome all difficulties, narrowing production, only focusing on making products with stable output and paying more attention to the domestic market”, said Mr. Cao Van Trieu, Director of the Ha Hung Phu Import-Export Co., Ltd.

In need of policies that help “free” businesses

According to businesses, in addition to businesses’ efforts, in order to resolve the situation of the cashew industry in general and cashew manufacturing and processing enterprises for export in particular, the Government needs to issue policies to “free” businesses.

Mr. Cao Thuc Uy said that businesses are highly consistent with the “3 on-spot” model but there exists the need to further expand new models in the direction of diversity, thereby allowing businesses to have a choice that suits their conditions, rather than being forced to follow a rigid and stereotyped model.

In addition, the company also proposed the authorities allow testing time easing and allow businesses to buy vaccines for workers. Because as of now, the company has to do Covid-19 test for all employees at a cost of 230,000 VND/employee every 3 days.

“Thus, on average, for each test, the company has to spend more than VND 170 million per week. If this proposal is not approved, the company will have to close down so that everyone can return to their families for a while, then calculation for the future comes after", said Mr. Uy.

My Le Co., Ltd proposed that local authorities need to synchronize epidemic prevention activities in cashew nut production and processing establishments, if impossible, they must be executed according to the Government's regulations. Because if the epidemic obtained the chance to spread in businesses that do not ensure epidemic prevention, it will affect all businesses in the field.

The government should really consider supporting businesses that are maintaining production activities during the quarantine period, because during this time, maintaining jobs for workers has already been very difficult since the costs have increased a lot. Moreover, it is necessary to freeze debt or partially exempt from tax and social insurance, quickly support factories that are implementing production and implementing "3 on-spot" on vaccine sources.

Due to the impact of the Covid-19 epidemic causing the price of raw cashew nuts to increase abnormally, VINACAS recommends that businesses should not import raw cashew nuts at high prices. To be more specific, amidst the Covid-19 complicated situation, enterprises should not import if unsuccessful in balancing production, at the same time take production and business plans as the foundation to balance revenue and expenditure, then reconsider importing in the coming time.