Import-export businesses worry about the impact of exchange rate fluctuations

​From the beginning of the year until now, exchange rate fluctuations in many countries around the world, especially key import and export markets of Vietnam, have continuously changed. Other major currencies all fell sharply against the US dollar, which has certain adverse effects on enterprises involved in import and export.

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Exchange rate fluctuations are affecting export and import enterprises (illustrations)

Along with exchange rate fluctuations, difficulties from a decrease in consumption demand, the impact of conflicts, and rising global inflation also cause more difficulties for businesses, possibly even more difficult than in the previous period. disease is still complicated.
Many businesses are affected
In the important export market of Japan, enterprises exporting to Japan not only face exchange rate difficulties, but Japanese importers also tend to reduce the quantity of imports due to the decrease in consumer demand for goods, and the prices of goods are more expensive when they are imported. Yen loses record value against USD after 24 years. This will affect the amount of goods exported by domestic enterprises.

 Similarly, in other markets such as Europe and the US... The appreciation of the US dollar also makes Vietnam's exports more competitive in the US market, leading to more sales. However, not only the Vietnamese dong but other currencies also weakened against the USD. Most of the export transactions of enterprises are in USD. Although exports benefit when the dollar appreciates, on the contrary, in order to export goods, enterprises must also import raw materials and auxiliary materials. When the USD increases, the cost of imports, transportation, logistics, warehousing, and debt in USD also increases. Among them, the export wood industry is the most affected.

Find solution to limit influence

 According to Dong Nai Statistics Office, in September, the export situation of some enterprises improved compared to the previous month (up 0.66%) because it was the last month of the quarter, so many enterprises focus on exporting orders in the quarter that have been signed previously. It is now the last quarter of the year. This is also the time when the demand for foreign currency is often higher when businesses are at the peak of production at the end of the year. The continuous fluctuations of the exchange rate will cause more difficulties for businesses. Besides the exchange rate, what is more worrisome for exports is the not-so-bright outlook for the world economy, with inflation rising, the risk of recession and consumers forced to gradually tighten their spending.

 In order to limit the negative effects of exchange rate fluctuations as well as other difficulties, according to experts, enterprises in the field of import and export need to pay attention to monitoring fluctuations, updating on the situation of inflation, interest rates, epidemics and conflicts, war... This is very important because from such data can help businesses better adjust, choose the export and import markets that are least volatile, and at the same time diversify payment methods, combine with different orders. reputation to avoid disadvantage. Besides, for importers, it is also necessary to diversify the source of raw materials, especially looking for domestic products, to reduce costs from imports.

 Another solution is to increase more sales in the domestic market. For the wood industry, the domestic furniture market will be more exciting in the last season of the year. This is also one of the opportunities for the units to not only increase their domestic sales but also find ways to cooperate and share the difficulties they are facing.