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Export thriving, businesses recovering

Update: 16-05-2024 | 11:24:02

In the first 4 months of 2024, the economic and social situation of the province continues to thrive and achieve many positive results, quite comprehensively across various sectors. In particular, goods exports have recorded a high growth rate with over 10.9 billion USD, ranking 4th nationwide. The provincial departments, industries, and businesses are making further efforts to overcome difficulties and regain growth momentum for exports. Many foreign enterprises are also seeking opportunities to expand their investments in Binh Duong.

High growth eyed in many commodities

The import and export activities in the province are currently experiencing favorable conditions. The export of goods in April 2024 continues to maintain a promising growth rate compared to the same period. Key sectors such as textiles, footwear, and wood processing are all showing significant increases, making positive contributions to the province's export growth.

Production activities at Yazaki EDS Co. Ltd.

According to the provincial Customs Department's data, the key export items of Binh Duong are all experiencing a strong recovery. The export turnover of the wood industry in the first 4 months of 2024 is estimated to reach 1,954.4 million USD, up 28.3% compared to the same period, accounting for 17.8% of the total export turnover of the province; the textile and garment sector reached 925.5 million USD, up 8.6% compared to the same period; leather shoes reached 545.9 million USD, up 5.8% compared to the same period; computers, electronic products, and components had an export turnover of 511.7 million USD, up 17.5% compared to the same period.

Businesses in the province's area, spanning various industries, also acknowledge that export activities are thriving as consumer demand for goods in many major markets such as the US and Europe is gradually improving. This is driving an increase in export orders. Mr. Luu Phuoc Loc, Vice Chairman of the Binh Duong Furniture Association, stated that the industry has always been one of the bright spots of Binh Duong in terms of export turnover. With many strengths and effective business support policies, Vietnam's furniture exports and wood products have achieved many successes in the international market. Currently, businesses are striving to seek additional orders through organizing trade fairs and exhibitions both domestically and internationally, while also promoting into new markets in the Middle East region. Wood industry enterprises are also investing in new technologies, digital transformation to develop new products and services, enhance competitiveness, increase efficiency and productivity.

Strengthening the confidence of the enterprises

In the early months of 2024, the foreign direct investment (FDI) inflow in the province showed signs of slowing down. However, production and business activities at many FDI enterprises in the province remained stable and growing, with increased revenue and export turnover. As a result, the confidence of foreign investors is being reinforced.

The export turnover of goods in the first 4 months of 2024 of Binh Duong reached over 10.9 billion USD, an increase of 15.6% compared to the same period. Within the overall growth rate, the FDI business sector continues to play a leading role with a total value of goods import and export in the first 4 months of 2024 reaching nearly 8.9 billion USD, increasing by 15.3%.

The import and export activities show signs of recovery, with exports in many key markets regaining growth momentum, presenting a good opportunity for businesses to boost production and trade. Binh Duong province is enhancing investment promotion activities linked to trade promotion, administrative procedure reform, shortening the time for processing documents, reducing costs for businesses, and supporting import-export activities, especially ensuring fast customs clearance for goods.

In the second quarter of 2024, 41.78% of businesses assessed that their production and business situation improved compared to the previous quarter, with many companies predicting higher order quantities and revenue in the second quarter. However, many FDI enterprises reflected that they are facing legal barriers in Vietnam, hindering market entry and long-term investment. Administrative burdens are considered a major obstacle to establishing and expanding operations.

At meetings, dialogues, and investment promotion sessions with provincial leaders, most businesses acknowledge that although they are currently and will continue to be affected by negative impacts, Binh Duong remains an attractive investment destination in the long run. Many foreign investors consider Binh Duong as a promising land for long-term development. Taiwanese bicycle manufacturer Giant's Chairwoman Bonnie Tu said that after operating in Binh Duong for a period of time, the corporation realized there were many opportunities to expand and further develop. In the near future, the corporation will continue to invest in building another manufacturing plant in VSIP 3 Industrial Park with a capital of around 120 million USD. In 2021, Giant Corporation invested in constructing a factory at VSIP 2A Industrial Park, with an initial investment capital of about 60 million USD for phase I and the long-term scale of the project is to produce 1 million bicycles annually.

Recently, Tetra Pak also announced an additional investment of 97 million Euros in the beverage carton production plant in Binh Duong, bringing the total investment amount from 2019 to date to over 217 million Euros. Tetra Pak Vietnam's General Director, Eliseo Barcas, stated that this expansion is evidence of Tetra Pak's long-term commitment to the Vietnamese market since its inception 30 years ago. Tetra Pak believes that these steps will not only better serve its customers but also contribute to the economic development of the country and the local area.

The General Department of Customs reported that as of the end of April, there were four provinces and cities with export turnover of over 10 billion USD, including Ho Chi Minh City, Bac Ninh, Thai Nguyen, and Binh Duong. Ho Chi Minh city continues to maintain its position as the largest export hub in the country while Binh Duong ranks fourth nationwide in terms of export turnover, with over 10.9 billion USD. Specifically, the domestic economic sector reached over 2 billion USD, increasing by 16.8%; the foreign direct investment sector reached 8.89 billion USD, increasing by15.3%. The United States is the largest export market for the province, with a total export turnover of over 4.8 billion USD, accounting for 44.2% of the export turnover and increasing by 14.3% compared to the same period.

Reported by Ngoc Thanh – Translated by Vi Bao

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