Export markets begin to recover

 At the end of Q3-2020, the import and export market in the province continued to show signs of recovery. Trade with countries and territories in the world has begun to grow. Orders of businesses in the province also increased gradually.

Production activities in DS Vina Company, Dat Cuoc Industrial Park, North Tan Uyen District.

 Number of orders rise steadily

According to provincial Association of Leather Footwear and Handbags, provincial enterprises have negotiated many new contracts. Some companies got orders for September and October and are in talks with some partners about larger orders. In particular, from the EU market, it is expected that many contracts will be signed in last months of the year. Currently, many enterprises are planning to boost production again. Enterprises also expressed confidence in the "launching pad" EU-Vietnam Free Trade Agreement (EVFTA) which will help the footwear industry accelerate exports, grow turnover, offset the decline from beginning of the year. It is forecasted that the export turnover of footwear and handbags in the fourth quarter of 2020 would reach good growth again, because this is the time of many large holidays and festivals associated with consumption in European countries and the Americas.

After months of finding opportunities in difficult time, timber industry in September has prospered, the expected growth figure is two figures compared to August (in August, export turnover reached 500.5 million USD, up 5.1% over the previous month). Up to now, many wood enterprises in the area have taken many orders of partners, overtime working has grown steadily. According to the analysis of Binh Duong Wood Processing Association, the reason for the rapid recovery is that Vietnam's timber industry was affected by the pandemic, but most businesses in Binh Duong were not disrupted in production, no factories were blocked because of infections.

In addition, interior market of the U.S., Europe also began to dynamic, and Vietnamese enterprises benefited from the U.S.-China trade war. However, one problem now is that raw wood imported from some countries is being interrupted, causing the supply of timber to fluctuate and leading to a local lack. In return, domestic supply meets the demand, thus enterprises still strive to receive all new orders of customers. Moreover, enterprises seek to capture trends on the world market, and especially the US market, to organize re-investment in production in the direction of specialization, forming chain links, developing large orders, and taking advantage of domestic raw materials.

Textile - garment industry has also gradually recovered. Trade in many countries has been cleared, hence exports are more favorable. According to Tran Thi Van, Head of Sales Department of DS Vina Company (Dat Cuoc Industrial Park), in March, April and May, their production decreased by about 30% - 50%. However, from August 2020, situation of import and export was better. Up to now, number of orders has increased from 30-50%, the company got orders for until March 2021. It is expected that the company's sales would increase 80% compared to 2019. DS Vina imported 14 machines to run new orders and meet development requirements of the international integration.

To attain active workforce

An advantage for enterprises to return to the normal production cycle is the stable number of employees, due to efforts to retain and care for workers' lives during the Covid-19. Ms. Van also said that, from March to the end of July, DS Vina, despite difficulties, maintained five working days per week and non-working days, on which workers were still paid according to the regional minimum wage. Employees feel secure about working at the company at present, when the number of orders is increasing, some departments have worked overtime. In the opposite direction, DS Vina Company received great support from the local authorities. “We are supported by the local government in disease epidemic prevention and control. Binh Duong Tax authority has assisted us to refund VAT quickly to solve financial difficulties during the epidemic, and Provincial Industrial Parks' Management Board helped bring our 15 experts from Korea to work here again”, said a representative of DS Vina Company.

To confirm this once again, Wang Sheng Lung, Director of Long Hao Company (Dat Cuoc Industrial Park), said that the company is still maintaining production, workers have extra shifts. Due to the company's efforts to support employees, since beginning of the third quarter, major products, such as furniture and household appliances, have seen good growth, especially in the US market. The company has no labor fluctuations. The company also received guidance of all governmental levels on disease epidemic prevention and production assurance.

Reported by Tieu My - Translated by Ngoc Huynh