Businesses supported to maintain development momentum

Binh Duong's economy in May 2022 continued to recover strongly in all fields. However, in the context of the global economic environment being greatly affected by the epidemic, challenges still lie ahead.

Woodwork enterprises in the province strive to produce to sustain new purchase orders

The strong faith

According to newly released data in the first 5 months of the year, the province's economy continued to be stable as production and business activities have prospered. Infrastructure projects have been invested in synchronously with high determination. Industrial production has recovered positively, and trade-services have recovered strongly. Binh Duong has kept on to promote digital transformation and green production while social security has been guaranteed, and national defense-security has been maintained.

Binh Duong keeps on to attract strong domestic and foreign investment capital flows. As of May 15, 2022, domestic investment has gained VND 8,047 billion, accumulated in the first 5 months of the year to VND 30,997 billion of investment attraction. Foreign investment (FDI) attraction has been accounted for USD 151 million, accumulated in 5 months to nearly USD 2.5 billion.

For the whole 5 months, the index of industrial production, export turnover, and FDI attraction increased sharply over the same period. Specifically, cumulatively for 5 months, the industrial production index increased by 7.9% over the same period. Total retail sales of goods and services was estimated to increase by 2.9% over the previous month and by 17.5% over the same period, accumulated in 5 months to increase by 11.5% over the same period. Export turnover was estimated to increase by 6.2% over the previous month and 17% over the same period, accumulated in 5 months to increase by 11.5% over the same period. Import turnover was estimated to increase by 23.3% over the previous month.

Discussing the economic situation, leaders of the Korean Business Association (KOCHAM) highly appreciated the recovery and development of Binh Duong after the COVID-19 pandemic as the province maintains its position of an attractive destination for investors. The association believes that the efforts of the authority have given the business community at home and abroad a stronger belief to recover and develop. “In the past 3 years, the COVID-19 pandemic has caused all Korean businesses in Binh Duong to face many drawbacks and challenges. Fortunately, up to now, the business of enterprises is gradually returning to the "new normal". Up to this date, most businesses and investors have stabilized to restore their production and business operations. Many enterprises have increased investment capital, attracted labor, and expand production scale to offset the difficulties and damage after the pandemic," said Kim Won Sil - Chairman of KOCHAM.

Cautious information grasping

Ms. Duong Thi Minh Tue, Sales Director of Minh Duong Woodwork Joint Stock Company in Thuan An city, said that the company's purchase orders to the US and Europe are finalized until the end of the third quarter of the year. However, the current concern of businesses is the very high and rapidly increasing cost of export fees for services. Specifically, each container exported to Europe bears a fee of USD 6,000 - 8,000, and exporting to the US  USD 10,000 - 12,000, pressing on businesses to negotiate to receive new purchase orders in the last quarter of the year, which is associated with quite high challenges and risks. Right now, enterprises take cautious steps to timely capture information to effectively operate production and business while minimizing the impact of geopolitical influences.

Mr. Vo Van Minh, Deputy Secretary of the provincial Party Committee, Chairman of the provincial People's Committee, assessed that the province's socio-economic in the past 5 months had achieved positive results. The performance indicators of governance and public administration at the provincial level were highly appreciated, especially in terms of attracting foreign investment, which Binh Duong ranked first in the nation as an important premise for the province to continue to achieve its goals in 2022. However, besides that, problems that need to be improved still persisted to facilitate businesses. To support and remove difficulties for businesses in the coming time, the province continues to review and remove obstacles in production and business activities. It also did researches and developed a number of specific mechanisms and policies on attracting labor resources, investment capital, industrial and urban development. It organizes contact activities with business and industrial associations while policies are effectively implemented to support lending interest rates for enterprises, cooperatives and business households.

The province continues to accelerate the progress of works, especially key projects, and actively coordinates with relevant agencies and localities to implement investment procedures for key roads, traffic flow, and cargo clearance. The province is preparing to hold an event to honor the Top 7 Intelligent Community Forum (ICF) 2021 along with solutions to improve PCI, PAPI etc. to create the most favorable environment, and minimize difficulties challenging for businesses.

Reported by Tieu My – Cam Tu – Translated by Vi Bao