“Bright door” for exporters

With the efforts by the Government, localities, functional sectors plus a series of effective solutions to cope with the Covid-19 pandemic, export and import activities in the second quarter of 2021 promise to continue maintaining good growth momentum, becoming an important driving force for the overall growth of the economy.

Good signals

Since 2020, with the drastic direction of the Government and relevant ministries, sectors and localities in implementing many measures to remove difficulties to ensure Covid-19 prevention and control while minimizing the impacts of the pandemic on import and export activities, the export situation of enterprises has had many good signals.

Production activities at Hiep Long Co.Ltd. in Thuan An city

Along with challenges, Vietnam's export performance has also has certain advantages. The measures to implement the European Union-Vietnam Free Trade Agreement (EVFTA) have brought about initial positive results. Domestic production has been under recovery. Some countries have implemented economic stimulus packages in the post-Covid-19 period, which can boost the demand for consumption and import of goods in 2021. To catch up with that trend, enterprises have bravely invested in production. Hoang Ngoc Yen, Director of Nhi Binh Plastic Joint Stock Company in the VSIP 2A said that the company has just invested in another factory with  investment capital of about VND 100 billion to increase export output for products that have gained reputation in Japanese and European markets. Deploying the project in Binh Duong, the company has enjoyed many advantages, receiving support from the local authorities at all levels and sectors.

Nguyen Liem, Vice-Chairman of Binh Duong Furniture Association said that the wood industry is now making good use of the signed free trade agreements (FTAs) to expand international trade and export markets. Meanwhile, the demand for online furniture shopping in other countries is also increasing. The large shift of orders from China to other countries, including Vietnam, is a favorable condition for enterprises in the province to increase their output.

However, the province’s wood processing industry has faced disadvantages because the use of imported raw materials is still large. The financial source for investment in technology innovation is limited, and the interest rate on loans is still high.

Currently, wood processing enterprises in the province focus on improving their production capacity and investing heavily in building raw material zones, automatic technologies as well as promoting marketing activities in the world market. Enterprises' desire is that the State has specific policies to support enterprises in developing auxiliary industries, investing in technological innovation...These are necessary and sufficient conditions for wood processing enterprises to further develop, well meeting the current trend of integration and competition.

Actively supporting enterprises

Ministries, branches and localities have urgently, continuously instructed and notified industries’associations, enterprises of the development of the domestic situation as well as border areas to avoid affecting the speed of customs clearance and causing congestion in the border areas.

To solve market difficulties, the province's sector of industry and trade has strengthened its coordination with the World Trade Center Binh Duong New City (WTC BD) to actively innovate trade promotion activities while finding markets that are in strong demand amid Covid-19 pandemic; enhanced dissemination of committed contents, activities that need to be implemented for enterprises by more innovative and creative forms through the media, websites, publications, documents, or other training classes, seminars... According to Huynh Dinh Thai Linh, Director of the WTC BD, the center is coordinating with relevant units to develop programs on enhancing competitiveness in association with training hi-quality human resources, promoting the application of technology for industries, enterprises in line with international commitments; supported domestic enterprises to join the value chain networks, the regional and global supply chains, especially the WTC system.

On the other hand, industries’association and the business association need to deploy trade promotion models and programs, connecting supply and demand both at home and abroad on online environment and new platforms. For the long term, businesses still have to invest in key factors, especially continue restructuring production, improving products’ quality in association with cutting operation costs to launch products with more competitive advantages towards sustainable growth for exports…

Reported by Tieu My-Translated by K.T