Driving industrial sectors to make use of new market penetration opportunities

The production capacity of domestic industrial enterprises has recovered very positively after the COVID-19 pandemic, however, they still need support to fully exploit the opportunities to access new markets in the future.      

Enterprises wish to be supported in terms of capital to unlock resources for development. In the picture: Production activities at Binh Duong Garment Joint Stock Company

Growth of invention industries sustains

According to the Ministry of Industry and Trade, in May 2024, the industrial production index of the province increased by 5.74% compared to the same period in 2023; of which the processing and manufacturing industry increased by 5.54%. The growth results of the industry in general and the processing and manufacturing industry in particular have shown a very positive picture of domestic production, as well as in Binh Duong province.

According to Mr. Pham Van Xo, Chairman of the Binh Duong Import-Export Association, industrial production enterprises continue to face many difficulties due to limited access to loans despite the decrease in interest rates, increased costs of imported raw materials, as well as the exchange rate between the Vietnamese dong and the US dollar, and high logistics costs... which reduce the price competitiveness of exported products. Another challenge is that the domestic manufacturing sector heavily relies on imported raw materials from abroad.

Representatives of the Binh Duong Wood Processing Association believe that the fact that the United States still does not recognize Vietnam as a market economy, along with many other countries tightening control over imports, is creating significant obstacles for Vietnamese export businesses, including the wood industry.

Meanwhile, according to Ms. Truong Thuy Lien, Vice Chairman of the Binh Duong Leather and Footwear Association, leather and footwear businesses are facing numerous challenges. One of the biggest obstacles for businesses is the strict regulations on imported goods from various countries. Businesses are required to comply with direct control conditions and must be issued certification by the importing country. The footwear industry is still facing the risk of anti-dumping duties in some import markets as the growth of this product is surging.

Stress mitigation

According to Mr. Nguyen Thanh Toan, Director of the Department of Industry and Trade, the industry is currently developing and submitting to the Provincial People's Committee for issuance the regulations on the operation of the Evaluation Council for selecting investors to build technical infrastructure for industrial clusters in Binh Duong province; requesting industrial cluster investors to complete legal procedures related to investment and construction of industrial cluster infrastructure in the province. At the same time, construct and gather opinions from departments, sectors, and localities on the draft criteria for selecting investors for industrial infrastructure clusters in the province; thereby, supporting the establishment of specialized industrial clusters according to the province's orientation, promoting the development of sustainable businesses.

Mr. Nguyen Thanh Toan also suggested that businesses be more proactive in participating in global production chains and supply chains; take advantage of opportunities to enhance links between foreign-invested enterprises and domestic enterprises, in order to promote the development of management skills, technology transfer, and the formation of supply chains for materials, raw materials, and industry clusters. Businesses and industry associations need to maximize opportunities from new generation free trade agreements to seek new orders and customers; be more proactive in coordinating with businesses in the industry, associations, and government agencies to find new export markets, reducing development pressure.

According to businesses, the Government, ministries, sectors, the banking system, and localities need to continue to have more positive measures to support industrial production enterprises, especially output for production through measures to stimulate domestic consumption, enhance trade promotion to seek export orders, and stimulate the flow of inventory goods.

Mrs. Phan Le Diem Trang, Vice Chairman of the Binh Duong Textile and Garment Association, said that businesses are making efforts to restructure, reduce costs and production costs to enhance the competitiveness of products, thereby improving efficiency and adapting flexibly to the new situation. Various levels and sectors need to have additional financial policies and solutions to support industrial enterprises, especially processing and manufacturing enterprises, to have favorable conditions for stable production and business; at the same time, effectively develop and implement industrial development programs and support industries in the area; focus on enhancing the capacity of small and medium-sized enterprises.

Mr. Nguyen Thanh Toan, Director of the Department of Industry and Trade: The industry and trade sector will focus on effectively implementing the support policies for businesses that have been approved by the Government and the Ministry of Industry and Trade in order to overcome difficulties and obstacles in the production and business activities of enterprises. The sector will also support market research and connection for key export industries such as textiles, garments, leather shoes, and foundational industries to enhance production capacity and supply sources for exports.

Reported by Tieu My – Translated by Vi Bao