FDI firms to exploit strengths, gain momentum to resume production and business

Update: 22-10-2021 | 15:58:55

From the beginning of October 2021, in addition to the prevention and control of the Covid-19, foreign direct investment (FDI) firms in the province have received support, solved difficulties, recovered production and business, contributing to maintaining the economic growth momentum of the province.

To sustains growth in tough conditions

According to the Provincial Management Board of Industrial Parks, over the first nine months of 2021, industrial parks attracted US$2.11 billion, up 151% over the same period last year and reaching 176% of the annual . Namely, there were 37 new projects with total registered investment capital of more than 416 million USD, down 46.38% in number of projects, up 13.63% in capital over the same period; 75 turns of projects making adjustments to increase investment capital by nearly 1.7 billion USD, up 257.66% in capital over the same period. Investors from Singapore, Taiwan, Samoa, China, Hong Kong (China)... have the highest investment capital among countries/territories investing in provincial industrial zones.

Many FDI firms in the province have resumed manufacture. In photo: Production activities at Uchiyama Vietnam Company (VSIP 1).

The production and business targets for the first nine months of 2021 of enterprises in industrial zones also increased compared to the same period in 2020. In which, revenue reached 21.3 billion USD, increased by 3.25% and reached 60.88% of the annual target; export turnover reached 14.95 billion USD, increased by 2.75% over the same period and reached 59.82% of the annual target; import turnover reached 14.09 billion USD, increased 1.85% over the same period and reached 70.49% of the annual target; taxes and state budget payments reached $319.64 million, up 1.75% over the same period and reaching 60.31% of the annual target. The processing and manufacturing industry continued to attract foreign investors. Although being affected by the Covid-19 pandemic, FDI enterprises have overcome difficulties and ensured the necessary number of experts and workers at workshops and factories to maintain operations.

The impact of the pandemic on the production and business of FDI companies in the province is serious, the consumption market is narrowed, cutting off business cash flow. The export situation is interrupted in key export markets, such as the US, Korea, Japan, Europe, and China, especially due to the shortage of input materials in some garment and leather industries, furniture… Many firms have to reduce their business scale but still persist in safe production with the "three-on-site" approach.

Nguyen Thanh Binh, Deputy Director of the Provincial Customs Department, said that despite the impact of the pandemic, import and export activities in the province over nine months maintained a relatively high growth rate. Over the first nine months of 2021, the trade balance of goods has a trade surplus of more than USD 4.6 billion, of which the FDI economic sector had a trade surplus of more than USD 2.7 billion; export turnover of FDI enterprises was 19.84 billion USD, up 25.6%. FDI enterprises in the province have gradually removed difficulties and are stabilizing, restoring production.

Safe operations

FDI firms have much experience in the world market, their long-term clients are abundant and have strong capital capacity. Besides the support of the province and the Government, there are also support from their country, thus FDI enterprises have more favorable conditions to continue production. Especially, right after a video conference between the Prime Minister and businesses to make joint efforts, overcome challenges, seize opportunities, and recover the economy, a new working atmosphere has spread in the business community. Most recently, the Government's Resolution 128, which temporarily stipulates "safely adapting, flexibly and effectively controlling the Covid-19", has introduced measures to prevent control the disease uniformly, and are applied nationwide, welcomed and agreed by majority businesses.

Michel Bertsch, Director of Geuther Vietnam Company, My Phuoc 3 Industrial Park, said: "During the time of social distancing, 200 company employees had to do "three-on-site". Despite many difficulties and high costs, at least we can continue to manufacture with a capacity of about 60 - 70%. Immediately after the province eased the social distance and supports the recovery of production, the company is urgently gathering workers, setting up adaptation solutions, trying to boost production to complete the tasks and plans set out in 2021”.

Mai Hung Dung, Member of Provincial Party Standing Committee, Permanent Vice Chairman of the Provincial People's Committee, affirmed: "Binh Duong is always pay attention to and assist businesses in solving difficulties and obstacles, help firms to stabilize production, business, create momentum for development. To ensure favorable conditions for FDI firms in the area, the province is directing departments, branches and localities to implement a series of practical and effective solutions to support enterprises. In which, the province focuses on improving the business investment environment, attracting new FDI inflows; speeding up related procedures to form new projects, industrial zones and clusters, creating favorable conditions for investors and enterprises to access and enjoy preferential policies.

Reported by Ngoc Thanh - Translated by Ngoc Huynh

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FDI firms to exploit strengths, gain momentum to resume production and business

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