Ningbo enterprises eye Libyan post-war reconstruction

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Category: Ningbo Business

Published: Tuesday, 10 April 2012 09:48

After 12 consecutive months of negative growth in imports and exports to Libya, Ningbo saw an export volume of $ 4,992,500 this February, according to statistics released by Ningbo Customs. This represents Ningbo enterprises has taken time to watch the Libyan post-war reconstruction. The post-war reconstruction in Libya boosts the domestic demand, which is undoubtedly good news for Ningbo enterprises.

Last October, Ningbo Jide Electrical Appliance Co., Ltd. began to resume their export business in Libya, and saw a rapid increase in export volume. The company exported 1,314 and 1,688 washing machines to Libya respectively in this January and "one manager in the company said.

Most of the Ningbo-made products exported to Libya are air conditioners, refrigerators, washing machines, water heaters and other home appliances products. Although orders from Libya are on the rise, most companies remain cautiously optimistic on the Libyan market.

Take the Ningbo AUX Group as an example. They adopted a series of preventive measures before they recover their export business to Libya. "In order to maximize our risks, we request our Libya customers to clear the payment before shipments. We don't accept the letter of credit and T / T payment in advance." said Hu Lipeng, who is in charge of North Africa Business in AUX. She added that they would have their cargo fully insured as soon as Libya starts the export credit insurance service.

Recently, the Ministry of Commerce, the China International Contractors Association and the China State Construction Engineering Corporation has sent a delegate to look into the post-war reconstruction in Libya. The Liberia authorities expressed their welcome to Chinese enterprises' returning to the Libyan market and their participation in post-war reconstruction.

Experts say, currently there are two potential risks in the Libyan market, namely, the unstable Libyan currency exchange rate, and the tribal conflict, which might threatens the security.