Local export industry further reaches high growth

The province’s export turnover in the first half of 2016 continued obtaining high growth. According to province-based enterprises, Britain’s vote to leave the European Union or Brexit will not affect their export market much.

Export turnover up 16.5%

The province’s export turnover over the past six months reached more than US$10.69million, representing a surge of 16.5% against the same period last year or 43.7% of the year’s plan. Of the total figure, the domestic investment sector obtained more than US$2.05million, up 11.4% while the foreign investment sector achieved nearly US$8.64million, up 17.8% compared to the same period last year.

Province-based enterprises’ export activities in the last months of the year will continue reaching stable growth. In picture: Production of Esquel Vietnam Company in Thuan An town

Provincial Department of Industry and Trade said that the province’s export-import value of key industries like woodwork, apparel-textile, footwear, and electronics…in the first half of 2016 gained high growth. Thanks to the positive impacts of free trade agreements that Vietnam signed, since early this year, there has been an increase of 10%-15% in the number of province-based enterprises’ export orders. Most enterprises in the province have got export orders till year’s fourth quarter.

Noticeably, the province’s woodwork export value during the period was estimated at US$1.17billion, up 7.5% over the same period last year or 10.9% of the province’s total export turnover. With many advantages, the industry’s export turnover till year-end is likely to gain US$2.4billion. Do Thi Kim Loan, Vice-Chairwoman of Binh Duong Furniture Association (BIFA), who is also Director of Sao Nam Wood Flooring Company said that the country’s woodwork industry has set this year’s target of achieving US$8.3billion in export turnover, 37% of which will come from Binh Duong’s woodwork industry. It is expected that this year, the province’s woodwork industry will reach a growth of 20%.

Mrs.Loan added that her company has so far got orders till year-end. It is expected that this year, the company will obtain a growth of 20%-25% compared to last year.

Meanwhile, the province’s apparel-textile and footwear industries also secured US$1.03billion and US$968million in export turnover, up 7.1% and 7.2% compared to the same period last year, respectively. Truong Thi Thuy Lien, Vice-Chairwoman of Binh Duong Leather and Footwear Association, who is also Director of Lien Phat Footwear Company said that the province’s footwear export activities were very good. As of now, her company has had orders till February 2017.

Kent Teh, General Director of Esquel Vietnam Company said that his company over the past six moths took fruits in production and business with a 3% growth of total sales in comparison with the same period last year. The company also built a textile and dyeing factory at Vietnam-Singapore 2 Industrial Park. For the company, workforce is seen as a main foundation to gain better development.

Stable export market

Since mid-2015, some woodwork enterprises in the province have bravely invested in their workshops, mainly at industrial parks. This showed that the local woodwork industry has got thriving. Although facing difficulties in the EU market, the industry will still continue stably developing. According to Mrs.Loan, Brexit will not affect the industry’s export activities much.

Mrs.Loan said that amid Vietnam joining the Trans-Pacific Strategic Economic Partnership Agreement (TPP), BIFA has planned to set up a specialized industrial park right from mid 2015. BIFA now seeks appropriate land fund to be able to soon complete the project.

Pham Van Xo, Chairman of Binh Duong Import-Export Association hoped that with stability in the future when Britain has an official announcement leaving the EU, the export market of Vietnam in general and of Binh Duong in particular will continue being stable. Also according to him, the State needs to further give support policies on lending interest rate for enterprises so that they can easily get access to preferential loans…

According to experts, from now till late 2016, domestic enterprises’ export market will enjoy advantages from central policies. The Government is also making efforts in removing barriers greatly affecting domestic enterprises’ development…All will create a favorable investment climate for them, helping them be more confident in the integration process.

Reported by Phuong Le-Translated by K.T