Overcoming challenges, businesses pending for new opportunities

In addition to determination to do well the prevention and control of Covid-19, in the last 6 months of the year, the province focused on improving the business environment, improving competitiveness, removing difficulties for businesses to recover production and business operations. At the same time, the province will promote the disbursement of public investment, early completion of technical infrastructure works, creating a breakthrough for economic development.

Enterprises in the province try to maintain production, pending for new opportunities. In the photo: Manufacturing activities at Phuong Vy Company (Thuan An City)

Wait for a good signal

The Covid-19 epidemic has caused serious consequences for the economy, but the province's gross domestic product (GRDP) in the first 6 months of this year has still grown well. Binh Duong's economy still maintains a higher growth rate than many provinces and cities in the region and the whole country, up 6.73% over the same period last year. In the first quarter, import and export activities were relatively stable due to enterprises' fulfillment of orders for 2019, but there were many difficulties when the disease broke out and spread globally in the second quarter. Up to now, the situation of import and export has prospered, businesses have started to export goods to key markets. The difficulty of shortage of basic production materials has been improved. Export turnover in 6 months was estimated at 11.9 billion USD, up 0.4% over the same period in 2019. Import turnover was estimated at 9.4 billion USD, up 4.2%. Trade surplus maintained US $ 2.6 billion.

However, the province's economy is still facing many difficulties and is aiming to realize the "dual" goal of recovery and development. Although most economic sectors were seriously affected by the epidemic, many businesses were able to hold on, trying to maintain production and wait for recovery. In Vietnam, the Covid-19 epidemic has subsided, but in some countries at risk of a second outbreak, the economic situation in the last 6 months of the year still faces a series of difficulties. The Government is now considering whether to fully open for economic development or to limit the wait for the disease to pass. The epidemic prevention and control scenarios have been carefully researched by the Government and required each province and city to have effective solutions to prevent and fight against epidemics and to restore the economy.

According to the leader of the Binh Duong Wood Processing Association (BIFA), businesses in the wood industry still face many challenges because the world's disease is still very complicated and not well controlled, especially in key export markets for timber and wood products such as the US, Japan and the EU. Therefore, the prospect of exporting wood and wood products in the third quarter of 2020 is still not positive. According to Mr. Dao Minh Ngoc, Phuong Vy Company (Thuan An City), supporting industries will recover more slowly than other industries because they have to wait for good signals from manufacturing industries. If the epidemic situation in the world is well controlled, it is likely that by the end of the third quarter, this industry will have stable purchase orders.

Tran Thanh Trong, chairman of the Binh Duong Mechanics Association, said most businesses in the province were affected by the disease. Small and medium enterprises are also striving to maintain orders and hope that the epidemic in the world will be controlled, do not re-emerge, and the market will open and production and exports will recover.

During the epidemic, orders of ceramics industry decreased by 40-50%. Currently, the export market of the ceramic industry has not been fully opened, so the enterprises and ceramic production establishments of the province mostly maintain production to ensure the lives of workers and wait for the US and other countries markets. Europe returns to normal before exporting. This issue is taking place in almost all production sectors with export activities, including FDI and the domestic sector.

Efforts in a new state

Through evaluating the situation in the first 6 months of 2020, the provincial People's Committee agreed not to consider adjusting the targets and growth plans of 2020, to ensure the completion of the 2016-2020 plan tasks; at the same time, set out 6 groups of solutions and 10 specific tasks in each sector and field to focus on directing the implementation in the last 6 months of 2020 in a new normal state. Specifically, the province promptly implemented mechanisms and policies to restore and develop the economy and society. Regulating budget revenues and expenditures, removing difficulties in accessing capital and credit for enterprises and creating favorable conditions for production and business, promoting domestic and foreign investment attraction; continue administrative reform, build a clean and strong government apparatus to serve people and businesses. In the epidemic and common difficulties, the province also endeavors to take care of people's lives and develop culture and society, propagandize information, ensure social order and safety, improve the effectiveness of foreign affairs and international integration.

Mr. Tran Thanh Liem, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee, affirmed that the province has directed functional agencies to continue supporting businesses to access tax, capital, credit and trade promotion support policies and trade, taking advantage of opportunities of free trade agreements; accelerate implementation and disbursement of public investment. The provincial People's Committee will soon organize conferences and meetings with domestic and foreign enterprises, industry associations, promote investment calling, solve difficulties and problems. The province has also prepared conditions for anticipating investment projects which are moving into Vietnam and Binh Duong.

The business community is also waiting for signals of openness from major economies. It is expected that in the near future there will be about 15 European countries to reopen, transactions will increase, helping overcome the difficulties caused by the epidemic, and fulfill key targets in 2020.

Reported by Tieu My - Translated by Vi Bao

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