Efforts made to overcome difficulties, the economy continues to grow

To help businesses overcome difficulties and recover production and export, Binh Duong province has directed industries to synchronously implement many solutions, especially tax policies, increasing access to, concentrating credits on production and business sectors, continue to reform administrative procedures, organize many trade promotion activities, expand markets... This has helped the province's economic picture have some notable bright spots in the first eight months of the year.

Industrial production quickly recover

Ngo Van Mit, Director of Provincial Statistics Office, said that through the investigation and statistics in August of 2023, industrial production situation had some good changes, but the recovery was slow. The index of industrial production (IIP) in August is estimated to increase by 1.1% over the previous month and by 9.9% over the same period last year. The processing and manufacturing industry increased 1.2% over the previous month and 10.1% over the same period last year-on-year %.

Import and export goods are gathered at Binh Duong Port.

The Provincial People's Committee directed all levels and sectors to synchronously implement many solutions to remove difficulties and obstacles for businesses, especially tax policies, increase access to credit capital, and concentrate capital on production and business sectors, enhancing the effectiveness of administrative procedure reform, organizing many trade promotion activities, expanding markets...

In addition, Provincial People's Committee also directed to accelerate the disbursement of public investment capital to create more motivation for economic growth, creating markets for industries, such as mechanical engineering, steel, and construction materials... Along with that, to deploy effective solutions to find markets for industrial processing and manufacturing products in order to liberate production capacity to further increase growth because this is the key industry, leading the entire industry. Accumulating over 8 months of 2023, provincial Index of industrial production IIP is estimated to increase by 3.4% year-on-year.

Wood processing continued to be the province's main export industry. However, while inflation was rising, consumers tightened spending, export turnover decreased, causing many businesses to lack orders. Despite difficulties, businesses have taken advantage of trade promotion opportunities by participating in domestic and foreign fairs and expos to find new customers and markets. Meanwhile, the garment industry still faced many difficulties because of a shortage of orders and rising input costs, and main export markets have not yet recovered.

However, there were still some industries with positive growth, contributing to boosting the IIP in the eight months of 2023 by 3.4% year-on-year, including food processing industry, which increased by 8.8%; beverages increased by 22.3%; drugs, pharmaceutical chemicals and medicinal materials increased by 14%; electronic products, computers and optical products increased by 13.1%...

Maintain high trade surplus

While world demand is falling, inflation and economic recession is taking place in many countries, reducing consumer demand of major trading partners, import-export turnovers of the province are also affected. With positive and synchronous measures from the Government, ministries, branches and localities to remove difficulties and support domestic production and business, trade promotion and expand export markets, the province's import and export activities in the first 8 months of 2023 have shown positive signs. Accordingly, Binh Duong had a trade surplus of $6.1 billion, of which the economic sector with domestic investment had a trade surplus of $1.8 billion, and the FDI sector had a trade surplus of $4.3 billion.

Wood products continued to account for a high proportion and were one of the "bright spots" in terms of export turnover, but due to the impact of the global economic crisis, the production and business activities of enterprises in this industry have been affected. Particularly, the situation of textile and garment exports is expected to improve gradually, because difficulties would continue until the end of 2023. Many textile and garment enterprises still do not have enough orders for production in the last months of this year.

Packing rubber latex for export at Dau Tieng Rubber One Member Co., Ltd.

Investors put their trust

According to Provincial Department of Planning and Investment, from August 1 to August 15, the province attracted 367 new business registrations, an increase of 58.9% year-on-year, with a total capital of more than VND3,165 billion, an increase of 2.4 times year-on-year. In FDI sector alone, the province attracted more than $231 million, an increase of 5.1 times year-on-year. From the beginning of this year to August 15, the province attracted more than $1.2 billion of FDI capital. This fact of domestic and foreign investment attraction shows that businesses and investors still put their trust in Binh Duong, which has many potentials and opportunities for development.

Besides, social investment capital, disbursement progress of public investment capital for construction projects in the area achieved good results, facilitating socio-economic growth of the province. Specifically, the disbursement of development investment capital from the State budget was nearly VND1,948 billion in 8 months, up 2.3 times over the same period last year. According to a report from Provincial State Treasury, the disbursement of the public investment plan from the beginning of the year to August 15 was more than VND6,000 billion, reaching 32.1% of the year plan, of which provincial budget capital was VND5,192 billion, district budget was VND808 billion.

Although disbursement of public investment capital faced many difficulties, all levels, sectors and localities throughout the province made great efforts to achieve the above results. Public investment achieved important results in many aspects, contributing to removing bottlenecks in transport infrastructure, creating jobs, creating new motivation, new development space, and stimulating production business. From there, strengthen the connection between localities in the province, connect with the region, increase production capacity of the economy, facilitate socio-economic recovery quickly and sustainable development.

The province's export turnover in August 2023 is estimated to reach more than $3 billion, up 4.2% year-on-year. In the past 8 months, the US continued to be the province's export market with the highest proportion, with a total turnover of more than $7 billion, accounting for 34.4%; EU market is estimated at more than $2.5 billion, Japan more than $1.4 billion; China $633 million; Korea $535 million; Thailand nearly $354 million.

Reported by Minh Duy - Translated by Ngoc Huynh