Industrial production continues to recover and grow

In general, over the first six months of 2023, gross regional domestic product (GRDP) of Binh Duong increased by 3.76%, Industrial Production Index (IIP) was estimated to increase by 2.65% over the same period in 2022. In which, the processing and manufacturing industry increased by 2.5% year-on-year.

Timber industry, one of Binh Duong's key export industries, shows positive signs again. In photo:  Wood production at Trieu Phu Loc Company (Bac Tan Uyen). 

To sustains growth in tough conditions

The figure of 2.5% growth rate in the manufacturing and processing industry is a great effort of the business community, all levels and sectors while the global economy was growing slowly, supply chains continued to weaken and conflict persisted in Ukraine.

Looking back at the production and business activities in the province from the beginning of 2023, it can be seen that great efforts were made to overcome difficulties. The most difficult ones can be mentioned are wood products, textiles, leather and footwear industries due to many negative impacts of the global market, slowing down exports. However, businesses strived to maintain production along with repositioning the value of the supply chain, preparing necessary and sufficient conditions to survive and grow.

According to Nguyen Liem, Chairman of Binh Duong Furniture Association, businesses in this association still maintain production, connect and share to overcome difficulties together. With continuous efforts, some light spots appeared more clearly when in June, the Industrial Production Index was estimated to increase by 3.2%, processing and manufacturing industry increased by 3.3% compared to the previous month.

Nguyen Thanh Ha, Deputy Director of Provincial Department of Industry and Trade, said that the department monitors and supports provincial businesses in their production and development process, especially firms in timber industry - a mainstay industry of the province. In addition, this agency always keeps abreast of domestic and international market developments, effectively implement trade promotion activities, have timely responses in production and circulation of goods, and focus on implementing sustainable, long-term solutions for the development of timber industry.

“Through BIFA Wood Vietnam 2023, Organizing Committee hopes to promote the development of Binh Duong timber industry in particular and Vietnam in general, move towards the goal of export turnover reaching $20 billion by 2025,” said Ms. Nguyen Thanh Ha.

Set up the right growth scenario

According to Mr. Nguyen Liem, the difficult situation in production and export would probably last until the end of 2023. Currently, the purchasing power of major markets in the world and the domestic market has decreased. Most businesses in Binh Duong hope to be supported by trade promotion to stimulate purchasing power. Thus, firms can free up inventory and have more new orders. In addition, businesses also expect the State Bank to continue to have preferential policies to reduce interest rates, extend debts to have more investment capital for production, waiting for opportunities to recover.

Business access new machines and technologies to transform production processes and products through trade fairs.

In textile and garment industry, firms have been transforming production processes and products, accelerating the rapid transformation of traditional product structures into products that can adapt to the market. Notably, some businesses are recruiting workers to process new orders. For example, Yazaki EDS Vietnam Co., Ltd. has sent a document to Provincial Labor Confederation, requesting assistance to recruit 785 unskilled workers and was jointly helped by agencies to recruit enough the above number of workers for production. That signal opens a bright path for the growth scenario in the last 6 months of the year and the coming time.

According to Vo Van Minh, Deputy Secretary of Provincial Party Committee, Chairman of Provincial People's Committee, in the last 6 months of the year, Provincial People's Committee focuses on contacting and working directly with each association, business, and each project to promptly remove difficulties and problems. Solutions are studied to open up and stimulate consumer demand to contribute to the consumption of goods because businesses in the province are facing difficulties in export markets. Focus on regulating and ensuring stable power sources for production and daily life.

In addition, the province accelerates the expansion of industrial parks and invests in new industrial clusters as planned; perfects the policy of relocating firms from the southern localities to industrial zones and clusters in the northern areas. Closely monitor the situation of unemployed workers, reduce working hours and have a plan to connect labor supply and demand, support people to find jobs and stabilize their lives.

The Provincial People's Committee also directed competent branches to forecast and assess the situation in the last months of the year, define the task of removing difficulties and problems related to land, investment and business procedures, administrative reform, supporting production and business, promoting exports etc. At the same time, the province develops economic growth scenarios for the third quarter and the whole year of 2023 to have solutions for the best completion of tasks and plans.

BIFA Wood Vietnam 2023 is slated for September in Binh Duong. At this fair, businesses will have an opportunity to access products, advanced technology, diverse and rich sources of wood raw materials, meeting the needs of exporting goods to the global market... This is also an opportunity for domestic businesses and consumers to directly evaluate and select on the spot advanced products, machinery and equipment in the direction of automation of many reputable manufacturers from other countries, like: America, Europe, Japan, Taiwan, China...

Reported by Tieu My - Translated by Ngoc Huynh