Oil prices rise, dollar devaluation and stock if these conditions are, hyperinflatio…
From the beginning of the end of 2007, particularly since May of this year, Viet Nam a series of economic turmoil. From this influence, foreign trade enterprises in China to Viet Nam’s export and investment has placed no small pressure downward momentum has appeared.
Situation of the international economic situation facing, export credit insurance has become China’s many foreign trade enterprises “going” protection measures while Viet Nam of the financial crisis, China export credit insurance Corporation (“China credit insurance”) once again takes on more investment for Chinese enterprises to export important task of the escort.
Viet Nam economy plummeting, trade risk suddenly surged
In the past 10 years, Viet Nam has always been one of the fastest growing countries in Asia, growth was maintained at a 7.5% level. Due to the large number of overseas funds promising Viet Nam, inflow of Viet Nam and foreign direct investment inflows continued to accumulate. Until the second half of 2007, Viet Nam has been the darling of the investment organization in the world. In order to maintain rapid economic growth, Viet Nam also rising prices, the economy is overheating, the Government maintained a high degree of tolerance.
However, since the beginning of this year, with Viet Nam economic indicator is lit red light a number of people for Viet Nam economic confidence has plummeted. Figures May Viet Nam national inflation rate reached a 25.2% level of hyper-inflation, record high for 13 years; 1 to may of this year’s trade deficit reached US $ 14.4 billion, has exceeded the amount of the whole of last year. “Viet Nam the root of the problem is that too-rapid economic growth, in particular the virtual economy. “Mei Xin Yu, a researcher of the Institute for international trade and economic cooperation said.
Viet Nam and the emergence of the financial crisis deepened, on China’s enterprises to Vietnam caused no small negative effect on exports and investment. “Now, our Viet Nam investment and production costs of enterprises generally face increasing problems of” Viet Nam Chamber of Commerce Vice President He Changshun, China says, “there are enterprises export to Viet Nam of the goods could not be paid, because Viet Nam dollar shortages, many goods can only be a backlog on the port.” At the same time, Viet Nam effects of the economic crisis, China’s enterprises export to more difficulty, customers do not increase the stability of, the collection increased risk.
According to statistics, in Hebei province as an example, in April this year, on Hebei province exports reached US $ 66.87 million, but in May, Vietnam exports rapidly dropped to $ 43.47 million fell 35%, showing a clear downward trend.
Promoting more trade credit insurance, Sinosure protect foreign trade safety
Faced with growing Viet Nam economic turmoil, how to protect the Chinese-funded enterprises to more trade security? This is Sinosure is thinking and solving problems. Sinosure 23 business institutions in the country, with overseas representative offices in London, with many government departments, global financial institutions such as insurance and legal maintained good relations of cooperation, has become a covering China, international business service network.
Viet Nam is one of the important economic and trading partners in the ASEAN region in China, Sinosure business development of one of the key markets in the region. Sinosure have always been focused on Viet Nam’s economic turmoil. Currently, China’s short-term export credit insurance, credit insurance insurance 3 products for medium and long-term export credit insurance and investment, can protect the enterprise against Viet Nam exports and investment security.
With this 3 credit insurance products, once the State in which the investment exchange restrictions, expropriation, war and political violence, Government default risks, such as default by the lessee, Sinosure can provide compensation for economic losses to insured enterprises.
In recent years, as China and Viet Nam the in-depth development of bilateral economic and trade cooperation, Sinosure supported enterprise Viet Nam exports and investment to become clear. In 2002, Sinosure supported China’s enterprises in Viet Nam carried out a short-term insurance business, 1.583 million BN insurance; that by the year 2003, this figure had increased to us $ 35.08 million. Since then, Sinosure on businesses ‘ Viet Nam market support intensified. In 2007, Sinosure supported enterprises in Viet Nam total has reached $ 1.925 billion in exports and investment.
In May 2008, export credit insurance underwriting in China Viet Nam project, a sum of more than 2 million-dollar repayment due, the more requests for extension of one month by the Chinese exporters to pay, after mutual consultation, eventually Vietnam after 10 days in arrears to pay the money. “It is Viet Nam in the medium and long term business event of the debtor’s request to defer repayment for the first time. Where you can see, currently Viet Nam project repayment by the currency crisis, by certain effects; however, in the event of payment problems proactively maintain positive communication with creditors, indicating that Viet Nam present scheme of consciousness and subjective credit is still good. ” The project leader said.
Concerned about Viet Nam economic trends, strengthen credit risk prevention
While the international economic situation, faced many difficult to predict risk, but domestic enterprise risk prevention awareness still needs improvement; others while the credit risk of enterprises is no stranger to the concept, but on the prevention of credit risks and use of relevant tools go far enough. According to the relevant departments: 93% of China’s exports are now in the case of without the support of export credit insurance and guarantees. In this case, Viet Nam economic turmoil erupted again as the foreign trade enterprises in China has sounded the alarm.
Sinosure has been committed to credit insurance awareness, increase awareness of risk prevention, help raise the level of credit management. Since 2005, in order to help enterprises in China to grasp global credit risk, Sinosure began publishing in Chinese perspective drawing of global credit risk “maps”–the country risk analysis report. In the figure in the country credit risk, Sinosure according to different countries and regions such as political, economic, financial, social, from the perspective of China to Korea, and Japan and the United Kingdom and the United States, more than 60 countries and China’s foreign economic and trade exchanges close the country risk is divided into nine levels. According to the assessment, Viet Nam’s country risk is rated as level five, also ranked higher country risk level of the column.
This year, Sinosure on Viet Nam currently gave great attention to inflation and currency crisis, the positive measures taken, including the following 4 aspects.
First, if there is a risk in the insurance, Sinosure in accordance with the policy provides for payment to the insurance enterprises in a timely manner, ensuring that business is not affected, to sustainable development.
Second, to collect and collate information, strengthen macro-economic analysis of the situation, focusing on process tracking for risk management, strengthening the risk monitoring and control mechanisms.
Third, strengthening on the limits of the buyer’s dynamic control mechanism, keep abreast of the buyer’s risk changes, dynamic enterprise publishing in time risk, country risk and industry risk early-warning information.
Four is through the media, seminars and training forms, positive credit insurance awareness, increase awareness of risk prevention, help raise the level of credit management.