VietNamNet Bridge - The predictions about the recovery of the global economy in 2015 have greatly cheered Vietnamese businesses, but the stronger dollar has dashed their hopes.

The euro has declined to a 12-year lo,  thus worrying  Vietnamese exporters.

The chair of a HCM City-based garment company, for example, said his business plan had been affected because of the weakening euro.

“In fact, the euro began depreciating in 2014, but no one could imagine it would lose 25 percent of its value within a year,” he said.

He said the narrower door to the European market has forced him to find a way to penetrate the US market. In the past, 40 percent of the company’s exports went to the US and EU. Meanwhile, the US market alone now accounts for over 50 percent of its exports.

The businessman said that it would be be difficult to enter the Japanese market as the yen has been depreciating against the US dollar. 

Therefore, it would be better for businesses to “not put all eggs in the same basket” to disperse risks.

The euro depreciation has also caused problems for Vietnamese travel firms.

Vo Anh Tai, general director of Saigontourist, said the euro price fluctuation would affect Vietnam’s travel industry. The weaker euro will increase tour costs to Vietnam.

Tai said: ” “All the markets relating to the Australian dollar, Japanese yen and Russian ruble would see big changes.”

“We have discussed this with the European partners and we have to prepare some solutions to the problem,” Tai said.

However, analysts said the influences in the market could not be seen immediately.

“I think the euro weakening will certainly affect tourism, but not right now,” said Nguyen Duc Quynh from Furama Da Nang Resort.

“Our partners did not give any warning at ITB Berlin trade fair earlier this month. There will be no change with contracts signed for until 2016,” he said.

Meanwhile, some analysts quoted IPK International’s report as saying that the European market may see satisfactory growth this year with the number of people planning to travel in 2015 slightly increasing to 72 percent from 70 percent last year.

The director of a travel firm said he still cannot see any changes in prices and demand. His firm and other companies are still quoting the same prices.

He noted that tours organized in upcoming days are those to fulfill contracts signed many months ago. As the fees of services remain unchanged, the tour fees will not increase.

TBKTSG