Businesses strive for production, business, maintaining growth

In the context of the unpredictable global economic situation and declining demand for goods in many major markets, province-based exporters have proactively implemented various solutions to maintain a positive recovery momentum.

Adapting to trends

The province’s export turnover in the first six months of 2024 was estimated at reaching nearly US$ 16.3 billion, achieving 48% of the plan, an increase of 10.3% compared to the same period last year. The province’s trade surplus reached nearly US$4.8 billion. The province’s import turnover was estimated at more than US$11.52 billion, achieving 48% of the plan, up 9.9% year-on-year. These figures are evidence of the significant efforts of the business community.

With the efforts of businesses and the support of the province, production and business activities have recovered positively. In picture: Production of shoes for export at Dai Hoa Co.Ltd. in Tan Uyen city

Jang Jin Han, Production Director of Orion Vina Food Co., Ltd. In My Phuoc 2 Industrial Park shared: “The company has met its growth plan in the early months of 2024 thanks to its efforts in improving product quality and ensuring food safety for consumers. The company is striving to transform towards sustainable development, actively participating in environmental protection activities and fulfilling social responsibilities”.

According to Nguyen Quang Vu, Chairman of provincial Leather and Footwear Association, businesses are expecting breakthrough growth from now until the end of the year. Footwear and bags are sectors that can leverage many advantages from the free trade agreements that Vietnam has signed. Recently, many multinational retail groups have come to Vietnam to seek additional suppliers. It is predicted that the global economic situation will continue recovering better than at the beginning of the year. Thus, consumer demand for goods will increase, providing an opportunity for footwear and other sectors to expand exports.

Pham Van Tuyen, Deputy Director of provincial Department of Labor, Invalids and Social Affairs stated that the demand for labor recruitment has increased, due to positive economic changes in Vietnam and in the world. Binh Duong-based businesses have received many new orders, expanded production and created more jobs. Sectors with high recuitment demand include textiles, footwear, electronics, mechanics and food processing.

Many challenges needing to be overcome

Truong Thuy Lien, General Director of Lien Phat Company in Di An city mentioned that since the beginning of the year, the production and export situation has shown signs of recovery compared to 2023. Footwear products produced in Binh Duong that are exported to many countries and territories, have been affected significantly as shipping time has increased by 1.5 times and costs have risen by 10-20%. In addition to exports, the import of raw materials is similarly affected.

Shoe production at Thai Binh Investment Corporation

In the first six months, the export turnover of the leather and footwear industry was estimated at US$879.3 million, up 8.4% year-on-year, accounting for 5.4% of the province's total export turnover. However, businesses in the industry are facing issues for sustainable development. Specifically, Nguyen Duc Thuan, CEO of Thai Binh Investment Corporation (TBS Group) said: “Although the footwear industry has shown signs of recovery after a long period of being adversely affected by the Covid-19 pandemic, in 2024, the footwear supply chain is still facing many difficulties and challenges from geopolitical conflicts, trade wars, competition among major countries, and different policies between countries with footwear production and export industries. These challenges have changed the structure and production and business methods of the global leather and footwear industry”.

In this situation, Mr. Thuan believes that the leather and footwear businesses cannot stay out of the 4.0 revolution, applying automated production lines, artificial intelligence (AI), and green development to avoid being excluded from the global supply chain. To achieve this, research and development in design, materials, investment in technology application, and distribution methods need to change, focusing on quality, aesthetics, cost reduction, and CO2 emission reduction to serve consumers.

Nguyen Thanh Toan, Director of provincial Department of Industry and Trade stated that the province's industry and trade sector will continue closely monitoring market development and policy changes of partners to propose appropriate solutions, diversifying traditional and new export markets. Additionally, timely information is provided to industries’ associations about market development to help businesses adjust their production plans accordingly.

A noteworthy point in export activities in the first six months of this year was that although the trade balance continued having surplus, it was mainly contributed by businesses in the foreign-invested sector (FDI) with more than US$13.22 billion, up 10.1% year-on-year. Therefore, the business community believes that the most fundamental solution is to develop strategies for Vietnam's key export industries to participate in the supply chain of FDI manufacturers to maintain sustainable development.

Reported by Tieu My-Translated by Kim Tin