Part 1: Restructuring production, expanding markets

Update: 04-06-2020 | 18:20:39

Producing export goods at Hoan Cau Co., Ltd (Dat Cuoc Industrial Park, Bac Tan Uyen District)

The well-controlled Covid-19 epidemic is an important basis for businesses to boost exports, restructure production, wait for opportunities to bounce back and expand.

Positive signal

In May 2020, the world economy continued to decline sharply because the epidemic situation continues to be complicated in many countries, especially the US, Europe, India and African countries. But for some markets like China and South Korea, the economy is slowly recovering after the epidemic was under control. The number of re-operating enterprises is increasing, import and export situation is gradually being recovered and stabilized.

However, the good news for the business community is that with the statement of "living with the disease" of the US and European countries, Vietnamese goods have a chance to circulate. Recently, the US Embassy has confirmed that there are no barriers to Vietnamese goods' access to this market. The European Union (EU) also affirmed that the EU blockade of the immediate border does not affect Vietnam's goods flow. However, according to Mr. Ta Hoang Linh, Director of Europe-America Market Department, Ministry of Industry and Trade, the speed of goods circulation from the stages of transportation, customs clearance, storage, loading and unloading ... will be interrupted. sometimes when countries close their borders, delaying economic and service flows. Goods imported into the EU by air are undoubtedly the worst hit as flights are delayed and cut. Currently, Vietnam exports more than 60% by sea and 39% by air.

With the great efforts of both the political system and the business community, the import and export situation in the first 5 months of Binh Duong has prospered. In particular, many of the province's key export industries have grown up to double digits. Leather and footwear industry, in May 2020, export turnover is estimated at 298 million USD, up 13.6% over the previous month. In the first 5 months, export turnover is about 1,054.1 million USD, up by 4.4% YoY, accounting for 10.4% of total export turnover. Equally bright, the textile industry, in May 2020, exports are estimated at 371.1 million USD, up 10.5% compared to the previous month. In the first 5 months, export turnover is about 1,366.7 million USD, up by 7.8% MoM, accounting for 13.5% of total export turnover

According to the Department of Industry and Trade's assessment, up to now, some major export markets are gradually relaxing the border tightening policy after the period of social isolation. Import-export situation is showing many signs of recovery. Some enterprises have had new export orders with Chinese, Korean and Japanese markets such as garments, footwear and electromechanical. Particularly for the Chinese market, many businesses have exported goods and imported raw materials. The Department of Industry and Trade has also actively worked with the Trade Counselor to provide information on the situation of import and export to markets in countries during the Covid-19 epidemic to support businesses with agricultural products and pepper receptor.

Prioritize market development

Prospects and opportunities are quite clear for Vietnamese businesses. Currently, many businesses have been self-seeking markets, new products, new ways to maintain and stabilize production, waiting for opportunities to bounce back after difficulties caused by the Covid-19 epidemic.

According to Ms. Truong Thi Ngoc Thiep, Director of Vinh Hiep Co., Ltd. (Nam Tan Uyen Industrial Park) - a unit specializing in coffee production and export, before the outbreak, the company had a plan to upgrade the factory. , expand production and export. However, in the plague all plans stopped. “Although there is no order cut, most of the major partners of the company have reduced or delayed all orders until the end of June 2020. Therefore, the export volume of the business has decreased by 40% compared to 2019. The production and supply chain in the world was interrupted, leading to the enterprise unable to optimize production efficiency and increasing costs. However, to "save themselves", the company has implemented a strategy to convert the consumer market into the country by producing more instant coffee. And up to now, the company continues to plan to develop export markets around the world, ”Ms. Thiep expected.

To overcome difficulties, many businesses continue to search for new markets outside the traditional markets. According to the representative of Hoan Cau Company Limited (Dat Cuoc Industrial Zone - Bac Tan Uyen) - the unit that manufactures automatic curtains, the company's main market has been the US for a long time. During the epidemic the company has boosted exports to Europe, particularly France, to expand its market. However, along with the fastidious market like Europe, the company must continue to innovate according to the market's tastes from material to product design. Currently, businesses are strengthening trade promotion and working with partners to sign new contracts, further diversifying input materials, especially in favor of developing the domestic market to take the initiative. source material.

For the province's main export industry such as the timber industry, during the Covid-19 epidemic, many businesses encountered difficulties not due to social divestment but because of unexpectedly canceled orders. is the US and EU market. There are completely stopped import markets, some markets remain small. Many businesses still have a number of products that can be exported such as wooden furniture to the US, Canada, Japan ... Besides, along with the orders placed, businesses also adjust the production of some products. to put into storage, wait for the epidemic to be exported again.

According to Mr. Dien Quang Hiep, Chairman of Binh Duong Wood Processing Association (BIFA), businesses have tried to restore and restructure production, but orders have not seen much, especially the main export markets. such as EU, US ... businesses have operated at 50-60% of capacity. Some countries have reopened, but not enough for partners to order. The situation in the second quarter did not change much. The company hopes that the epidemic will be well controlled in the third quarter and the production development of the industry will be better.

(To be continued)

Reported by Tieu My - Translated by Vi Bao

Share

Export market optimism

Part 1: Restructuring production, expanding markets

HIGHLIGHTS

MOST READ