Export turnover on significant growth

The province’s export picture in the first 4 months of 2022 was very positive. The good growth of exports proved that the province’s implementation of solutions and plans to recover and develop production and business was effective, along with the efforts by the business community in overcoming difficulties.

Trade surplus of US$ 3.9 billion

2022 is considered as a very difficult year for the economy in general and import-export activities in particular because of the negative impacts of the Covid-19 pandemic. The disruption of the supply chain, due to the causes of geopolitical issues has also made the export of goods at a disadvantage. However, Binh Duong’s exports have still achieved impressive growth results.

Production of car tires at Hung Hai Thinh Joint Stock Company in Phu Giao district’s Tam Lap commune

According to a report by provincial People's Committee, in the first four months of the year, the province's socio-economic situation achieved many important results. The province’s index of industrial production, import-export turnover were very positive. The province paid attention to monitoring the situation of enterprises and laborers, removing difficulties for production and business, creating the most favorable conditions for enterprises to seize opportunities for development. As soon as the pandemic is under control, exporters have quickly caught up and made the most of the opportunities. Since October 2021, the province’s export turnover has continuously reached sharp growth…

In April 2022, the province’s export turnover was estimated at US$3.52 billion, up 4.5% and 22.7% over the previous month and the same period last year, respectively. Of these, the domestic investment sector reached US$669 million, up 3.8% and 19.8% compared to the previous month and the same period last year, respectively while the foreign investment sector was US$2.85 billion, up 4.7% and 23.4% over the previous month and the same period last year. The figure in the first 4 months of 2022 was estimated at US$12.46billion, up 11.9% over the same period. Of these, the domestic investment sector gained US$2.31billion, up 11.4% while the foreign investment sector obtained US$10 billion, up 12% over the same period. The province’s trade surplus was maintained at US$3.9 billion.

It is the dynamism of the local government that has helped many enterprises to maintain their position in the export "performance list", despite facing difficulties from the Covid-19 pandemic, Pham Minh Ha, Director of Hung Hai Thinh Joint Stock Company’s Tire Factory in Phu Giao district said: “We really appreciate the support of local authorities and sectors to the company resumed operations, revived production and exports in 2022. In the first 4 months of the year, the company's production got stability and continued developing as planned. We have made plans to adapt to the shortage of workers by improving labor management, trying to maintain the US market with advantageous products. The company’s growth is expected to reach 10% compared to 2021", said Mr.Ha.

Towards sustainable export

Based on the available foundations and continuous efforts from the government and business community, the structure of export goods has continued to shifting in a positive direction. The group of processed industrial products has increased. In April, processing and manufacturing industry increased by 7.33% and 11.32% compared to the previous month and the same period. The figure in the first 4 months of the year increased by 7.55%.

However, economic experts said that Binh Duong needs to clearly recognize that a large proportion of export contributions are FDI enterprises with potential risks and unsustainable factors. In fact, the FDI sector has also contributed to changing the structure of export goods in the direction of reducing the proportion of mining products and gradually increasing the proportion of manufactured goods. Prominent among them are the products of the FDI sector accounting for an almost absolute proportion such as phones, computers and components.

According to Nguyen Thanh Toan, Director of provincial Department of Industry and Trade, regarding the sustainability of import and export, the department has paid more attention to increasing the spread of FDI enterprises and improving the competitiveness of domestic enterprises. Specifically, the province has exchanged and encouraged FDI enterprises to increase the localization rate through domestic suppliers; transferred technology and modern management skills to domestic enterprises via joint venture projects in a number of important fields.

In order to improve the competitiveness of domestic enterprises, the province has assigned the local industry and trade sector to pay attention to removing difficulties, supporting exports, and promoting trade activities for agricultural, forestry and fishery products mainly manufactured by domestic enterprises. Over the past time, the sector focused on propagandizing and guiding domestic enterprises, especially small and medium-sized ones, about opportunities from free trade agreements (FTAs), how to take advantage of opportunities to strengthen exports; attached special importance to giving training on market development and trade promotion for the workforce of domestic enterprises.

According to Trinh Thi Hong Chau, Vice-President of Binh Duong Electromechanical Association, in the context of the pandemic and disruption of supply from abroad, FDI enterprises are also looking for input suppliers in Vietnam. This is a great opportunity for domestic enterprises, but also a competitive problem in terms of price, technology and quality. To participate in the supply of inputs, domestic enterprises must invest and launch competitive products. Currently, there are hundreds of enterprises becoming auxiliary ones, providing FDI enterprises with raw materials. Domestic enterprises have supplied civil electronic products, electronic assembly services, and auxiliary products in industries...

According to a report by the Ministry of Industry and Trade, the country's export turnover in 2021 reached US$336.3 billion, up 19.0% compared to 2020. Binh Duong still held the 3rd position in the rankings with total turnover surging 18% compared to 2020, accounting for 9.74% of the country’s total export turnover. According to the Ministry of Industry and Trade, despite being heavily affected by the Covid-19 pandemic in 2021, Binh Duong still achieved an impressive increase in export proportion. This result came from the efforts by the province in administration and the adaptation of the business community.

Reported by Tieu My-Cam Tu-Translated by Kim Tin