Export sector gets thriving with forecast surpassing the year’s plan

Update: 29-11-2021 | 11:24:43

Binh Duong's timely reopening, returning to the "new normal" state, flexibly and safely adaption to the situation of Covid-19 pandemic has helped the local export activities to get thriving again. It is expected that they will make a breakthrough in the "golden time" at the end of the year, which is predicted to exceed the whole year’s plan.

Flexible adaption

Catching up with the growth momentum from the end of the third quarter of 2021, in October, after returning to production stability, the province's export turnover was estimated at US$2.27 billion, up 19.9% compared to the same period last year. This figure reduced by 18.3% compared to the same period, but it marked an improvement amid the pandemic. Over the past 10 months, the province’s export turnover reached US$ 26.44 billion, up 19.3% over the same period last year. With the result, the sector is likely to surpass its target by 12% compared to 2020.

Wood industry is one of Binh Duong’s key export industries. In picture: Wood production at Phu Dinh Company in Dau Tieng district’s Thanh An industrial compound

To date, some key export industries of the province have recovered production earlier than expected. Province-based wood processing and exporting enterprises are actively trying to apply many solutions to overcome difficulties in terms of labor shortage as well as high input costs to speed up production. With the current growth momentum, the province’s export of wood and wood products for the whole year will reach about US$ 14.5 billion. Enterprises have been looking for ways to adapt to the new situation. Wood enterprises have also had very specific strategic plans to restore production, including a roadmap for the period of 3 months, 6 months and 12 months. The key is that enterprises must arrange reasonable production under a plan on material supply.

In addition to difficulties in terms of labor, enterprises have also faced the scarcity of raw materials. They cannot increase their selling price for products immediately. They can only notify customers of the current difficulties for earlier payment preference and then use the money to pay other suppliers.

The timely sharing of foreign partners has helped domestic enterprises get more conditions for recovery. Nguyen Minh Nhat, Director of Nhat Nam Plywood Co., Ltd. said that his company is keeping workers by applying preferential regimes to its core force that worked under the "3 on-site” model over the past time. "For those who did not participate in the 3 on-site” model, the company has still supported food and monthly money for them to maintain their lives. Since early November 2021, the company switched to "3 green" production model. The company’s workers are supported VND1 million immediately when entering to work. The company has also increased recruitment of new workers", said Nhat.

Open market

According to the sector of industry and trade, the reason for these results is that the Covid-19 pandemic has been controlled. Workers in enterprises have been vaccinated against Covid-19. The industrial recovery speed is quite good. Rapid industrial recovery will help increase export turnover. If the pandemic continues being controlled well in enterprises, the province's export turnover this year is likely to exceed the plan.

Province-based enterprises have known how to take advantage of the Free Trade Agreements (FTAs) between Vietnam and partners. The agreements, namely the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam - EU Free Trade Agreement (EVFTA), the Vietnam-Japan Economic Partnership Agreement…have opened up many opportunities for the province's exports... Enterprises need to be flexible in directly contacting with suppliers, giving priority to early payment for those providing raw materials.

On the issue of orders, Mary Tarnowka, Executive Director of the America Chamber of Commerce in Vietnam (AmCham) assessed: “Vietnam is a major trading partner of the United States. The reduction of production capacity in textile-garment and footwear has directly affected the supply chain and many consumers are affected directly. Therefore, the association has had solutions to support enterprises to recover production and supply chains. The association has also proposed brands to share and support Vietnamese enterprises to quickly recover production and export”.

According to Nguyen Van, Vice-President in charge of supply in Southeast Asia for ADIDAS Group, the resumption of production on the basis of strictly implementing anti-Covid-19 solutions has helped textile-garment, footwear enterprises get braver in investment and production. Leather and footwear enterprises in Vietnam have worked closely with customers around the world for many years. Many partners have shared difficulties with these enterprises by extending the delivery time. They have also pledged to continue prioritizing orders to these enterprises when resuming production.

Looking back to 10 months of 2021, enterprises suffered heavy damage by the pandemic for 3 months. More than 95% of enterprises produced below normal levels. In fact, hundreds of export enterprises had to stop operating or only operated in moderation. However, by the end of October, the province’s exports still increased by more than 1.5 times compared to the year ‘s plan. Of these, the domestic economic sector reached more than US$ 5 billion, up 23.5% over the same period while the foreign economic sector gained more than US$21.38 billion, up 18.4% against the same period last year. The province maintained a trade surplus of US$ 5 billion.

Reported by Tieu My-Translated by Kim Tin

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Export sector gets thriving with forecast surpassing the year’s plan

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