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On the issue of opening L / C we have worked with a number of banks and get the Denied on the L / C as the guarantee for this contract. The reason, they find a very big risk in the market when the backlog of about 2,000 trucks (according to me and Edward go market Hai Phong and Ho Chi Minh City has direct count was over 1,200 trucks). They also saw the potential of the product is not much as 1 month HHF can only sell 50 products. They charge market sales of 200 trucks / on 1 January 2000 trucks and consumption exist throughout the market will take about 10 months. Particularly in our inventory quantity is 250 trucks will take about 5 months to consume, so the next intake of 200 trucks is very risky. Bank calculated, HHF will take 9-10 months to sell all of its 450 trucks. Meanwhile government only allows import truck by year production period is 5 years and the bank support the borrowers only the trucks produced in 5 years. So if our truck off 2016 N unsaleable, trucks will not be there to support bank lending and thus will not be sold.
Currently, we are working with Asia Commercial Bank and Military Bank because only two banks agree for us to open L / C and they only agreed to open L / C 100 cars and they forced us to submit a business plan and consume 250 and 200 existing trucks trucks prepare to open L / C. We recently submitted to them on day 3, they are now promised review and they have the answers today, but we waited all day to answer them would reply tomorrow. I hope, everything will follow all right.
As we have said, the market size, customer Vietnam has certain limits, the Navistar are not checkout truck exports to Vietnam and to dealers US exports to Vietnam too many cars has made us totally lost control of the market and banks lose confidence in tractors cosmetics market in Vietnam.
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