Exportation on higher value tiers

Deeply aware of the opportunities and challenges, and the responsibility to rise to a higher value tiers, all levels, sectors, and the Binh Duong business community strive to achieve higher yields of production and business operations, especially the impressive trade surplus which is theresult of labor productivity and technological improvements to improve quality and competitiveness.

Binh Duong gradually modernizes logistics services to lower costs and increase the value of goods. In the photo: Import and export goods are gathered at Binh Duong port

Continual exporting surplus

The continual export surplus is always and vividlly proven by the position of Binh Duong in the top 5 in the country in terms of exports over the past time and the desire to enhance the value of Binh Duong on the way forward - a successful practice in building core values on the path of innovation and international integration of Binh Duong. Dynamism, thinking, daring actions, and the consensus of the people and business community have paved the way for Binh Duong's goods to rise higher and further.

The clearest evidence is that, despite the difficulties caused by the COVID-19 epidemic, Binh Duong's import-export turnover in 2022 reached USD 61.5 billion, of which the trade surplus reached over USD 9.2 billion where the US market accounts for the largest proportion in the highest trade surplus in recent years of Binh Duong. The encouraging result is considered by many economic experts to be the combination of three factors: Internal strength of businesses, opportunities of free trade agreements that Vietnam has signed, and the support of local authorities. In particular, identifying the times and taking timely response measures is the key to help Binh Duong maintain and develop amid difficulties and challenges.

Pham Van Xo, Chairman of the provincial Import-Export Association, said that import-export warehousing businesses in Binh Duong will still grow by 5% in 2022. Previously, when there were signs of difficulty, businesses quickly invest in machinery and technology to facilitate the import-export processes, and at the same time meet and engage in talks between provincial leaders and industrial associations to discuss solutions to drawbacks.

Masaya Nakagawa, General Director of GS Battery Vietnam Co. Ltd. in VSIP I, affirmed: "For 25 years of presence in Binh Duong, we are satisfied as well as beneficial from the full support of local leaders at all levels for our business. Besides, the potentials for market development is large enough thanks to the increasing demand for batteries for vehicles."  Masaya Nakagawa added that the Vietnamese staff have very good working skills and contribute a lot to the company's development. The company has continuously increased the localization rate. Since 2008, GS Vietnam has had a policy of developing and training domestic raw material suppliers to ensure supply with stable quality and at the most reasonable price.

Vo Van Minh, Chairman of the provincial People's Committee, affirmed that Binh Duong aims to become a center and driving force for regional and inter-regional linkages, continuing to be a pioneering local model in efforts to overcome the middle-income trap with peaceful and sustainable development towards smart, civilized and modern urban areas. Along with that, Binh Duong has making all efforts to increase the value of goods on the basis of flexible and creative application of guidelines and policies, comprehending and applying modern scientific and technological achievements, seeking agreements and companionship from provinces, cities, countries and territories to continue developing to novel positions.

The newly established Vietnam Singapore Innovation Center in Binh Duong would play an important role in the industrial manufacturing ecosystem to train up  a future-ready workforce and promote the transformation that enable continual upgrade of manufacturing enterprises with comprehensive activities as education and training, research and development, technology introduction, readiness assessment and consultancy to support enterprises in applying new but appropriate technological solutions of the 4^th revolution that help improve productivity and business management processes of enterprises.

Commodity structure to improve constantly

2023 continues to be a challenging year when all the efforts of all levels, sectors, and business community eyed Binh Duong's export situation staying still. Accordingly, the value of export turnover in July 2023 was estimated at more than USD 3.12 billion, increasing by 17.6% over the previous month and by 8.7% over the same period. In the first 7 months of 2023, Binh Duong had a trade surplus of USD 5.2 billion, showing brilliant Binh Duong's export activities even though the market is still complicated in many countries, especially the picture of inflation causing aggregate demand to decline.

Notably, Binh Duong's key industries continue to affirm their role to achieve a great deal of impressive results, contributing to promoting economic growth. In particular, the structure of export goods continues to improve in a positive direction. It is expected that the index of industrial production (IIP) in July 2023 would increase by 2.3% over the previous month and by 8.3% over the same period. Of which, the processing and manufacturing industry should increase by 2.3% over the previous month and by 8.6% over the same period. The highlight is that the export of raw materials has gradually decreased while the export of processed products and industrial products increased, creating conditions for Binh Duong goods to penetrate more deeply into the global supplying chain.

The growth of exports demonstrate Binh Duong's efforts in applying macroeconomic management policies of the Government, ministries and branches, and synchronous solutions to overcome difficulties and support businesses. Along with that is the initiative and flexibility in production organization of export enterprises, seizing opportunities for recovery and scarcity of goods from import markets, to effectively exploit the new generation free trade agreements (FTA).

Nguyen Thanh Toan, Director of the Department of Industry and Trade, said that Binh Duong's trade surplus had a significant contribution from FTAs. The fact that local goods have found a place in the world market has shown the province's competitiveness, especially in the industrial sector. In particular, the positive contribution of key commodity industries is also a premise for the industry and trade sector and businesses to strive to achieve the highest results in 2023.

To continue to achieve better and more positive results, the industry and trade sector has focused on a good range of solutions to support import and export. The role of connecting with the system of Vietnamese trade agencies abroad, supporting associations and businesses to effectively exploit signed FTAs to expand and diversify markets, supply chains and export goods should be promoted.

Reported by Tieu My – Translated by Vi Bao