Export markets and domestic consumption are recovering

Recorded in the first "peak month" of the fourth quarter of 2023, the situation of production, export, and the domestic retail consumer market all showed positive signs. The 2% VAT tax reduction policy lasts until the end of June 2024 and many support solutions from ministries, branches and localities continue to be a "catalyst" for businesses to reduce production costs, thus consumers buy products with stable prices at the end of 2023 and the upcoming Lunar New Year.

Retail market becomes dynamic again

A recent survey by Provincial Statistics Department showed that in October 2023, commercial and service activities in the area have improved gradually. Industrial parks in the province have vibrant production activities, many businesses have orders and are recruiting more workers, offering jobs to help increase income, improve people's lives, and stimulate purchasing power of the market.

Wood industry continues to play a key role in Binh Duong's total export turnover. In photo: Wood manufacture for export at an enterprise in Tan Uyen city. 

In general, purchasing power has recovered, the supply of goods is relatively stable, and prices of essential goods such as food tend to decrease slightly compared to the previous month. In addition, prices of fuel and energy products adjusted to decrease according to global prices, but the prices of other products did not have major fluctuations.

Besides, relevant functional branches, localities, and businesses have carried out synchronously and effectively the campaign "Vietnamese people prioritize using Vietnamese goods". Market control and price stabilization were tightened, ensuring that artificial scarcity or local price increases in some products do not occur, which has contributed to stabilizing the growth of trade and service.

Accordingly, the total retail sales of goods and service revenue in October 2023 is estimated to reach nearly VND25,680 billion. Product groups had a good increase compared to the previous month, such as: food reached nearly VND4,500 billion, wood and construction materials reached VND7,222 billion, vehicles reached VND874 billion, and petroleum group reached VND1,312 billion. Over the first 10 months of 2023, total retail sales of goods and service revenue in the province reached VND251,254 billion, an increase of 13.1% year-on-year. These are positive signs that solutions to support and promote production and business have brought practical benefits to businesses and consumers as well as the whole economy.

Exports increase

Right from beginning of the fourth quarter of 2023, to achieve production and business plans, many businesses have accelerated to complete partners' orders, helping to increase the value of export turnover in October 2023, estimated to reach US$2,780.7 million, up 19.5% month-on-month and up 10.1% year-on-year.

The 2% VAT reduction and many other positive solutions contribute to supporting manufacturing businesses and stabilizing the consumer market. In photo:  Customers shop at AEON Binh Duong New City.

The decline in consumer demand for key products such as textiles, footwear, wood processing etc. has partly impacted the total export turnover of the whole province in the past 10 months. However, for the first 10 months of 2023, the province's estimated trade surplus was still nearly US$7.17 billion. The US continued to be the export market with the highest proportion with total export turnover over 10 months estimated at more than US$11.8 billion, the EU reaching more than US$3.3 billion, Japan estimated at more than US$1.9 billion... The main export products of businesses in 10 months focused on wood products, estimated at more than US$4.4 billion, textiles and garments more than US$2.3 billion, leather shoes reached nearly US$1.3 billion, computers, electronic products and components reached more than US$1.3 billion.

Imported goods from the beginning of the year until now in the province are mainly raw materials for production and machinery and equipment. In particular, key product groups and important inputs serving export industries all decreased by double digits. For example, the import turnover of machinery, equipment, tools and other spare parts reached US$2.2 billion, accounting for 12.1% of the total, down 24% year-on-year; fabrics of all kinds reached more than US$1.1 billion, down 19.7%; Textile, garment, leather, and shoe raw materials reached US$526 million, down 27.3%...

According to Department of Industry and Trade, it is currently in the peak time for businesses to accelerate and complete export orders for the whole year of 2023. The continued approval of the 2% VAT reduction policy lasting until June 2024 will be one of the favorable conditions for businesses to reduce production costs and proactively sign orders for the year 2024 with competitive prices. Additionally, consumers will also enjoy stable product prices, especially for essential items, serving daily activities in the last months of the year and the upcoming Lunar New Year 2024.

The average consumer price index for the first 10 months of 2023 increased by 3.31% year-on-year. Among them, 9/11 main groups of goods and services had an increase in the index, food and catering services increased by 2.55%, due to the increase in input costs and prices of processed raw materials, which had an impact on market selling prices. Accordingly, housing and construction materials group increased by 3.3%, beverages and tobacco increased by 3.63%, and household equipment and appliances increased by 2.58%. Gold price index in October 2023 increased by 0.49% month-on-month, up 9.32% year-on-year. In the 10 months of 2023, gold price index increased by 3.97% year-on-year.

Reported by Minh Duy - Translated by Ngoc Huynh