Markets diversified to promote production growth

The economic picture in the first 2 months of 2024 has many bright colors, with impressive breakthroughs in exports and investments. In particular, exports are returning to a growth trajectory and will contribute more to the province's economic development goals.

Diversifying the market will support businesses in finding new orders. In the picture: Production at Binh Duong Garment Joint Stock Company

Growth impression

In the context of the still very unpredictable global economic situation, the demand for goods in many large markets has declined, but Binh Duong's export results in the first 2 months of this year still show quite high growth, which is a promising signal.

In the first 2 months of 2024, the province's export turnover is estimated to reach 5.341 billion US dollars, up 28.1% compared to the same period. Specifically, the domestic economic area reached 1.0078 billion US dollars, an increase of 31%, while the area with foreign investment reached 4.333 billion US dollars, increasing by 27.5% compared to the same period. This shows the great efforts of businesses, functional agencies in enhancing the efficiency of exploiting traditional markets and new, potential markets. The level of trade decline has been decreasing from the second half of 2023 and has increased again in the early months of 2024.

Mr. Phan Thanh Duc, Director of Binh Duong Garment Joint Stock Company, said that in the first quarter of 2024, the company recorded a 20% increase in orders compared to the same period last year. Most orders still come from long-standing customers. The company's leadership evaluates that the above result is a positive signal not only for the company itself but also for the entire textile and garment industry of Binh Duong province.

“However, alongside efficient businesses, there are still many struggling enterprises in Binh Duong. The Textile and Garment Association is also making every effort to support in terms of orders. Given the unpredictable economic situation, import-export businesses still have concerns, not only about the risk of decreasing orders but also about costs. Optimizing resources, saving costs, and time are crucial for businesses at this time,” said Mr. Phan Thanh Duc sharing about the common difficulties of the textile industry.

Mr. Vu Thong Hiep, Head of Administration - Human Resources Department of Hung Kiu Garment Company Limited (Tan Uyen City), said that to adapt to the business market, the company has invested in modern machinery, equipment, advanced technology, and optimized production processes. At the same time, they focus on training and improving skills for workers. As a result, the quality of products is increasingly improved, meeting the tastes and strict requirements of many customer groups at home and abroad, affirming the brand's position, building trust and satisfaction of consumers.

Ms. Phan Thi Khanh Duyen, Deputy Director of the Department of Industry and Trade, assessed that at the beginning of 2024, the import and export activities of goods have shown positive signals, which creates confidence in positive growth throughout the year. This result shows that the capacity of businesses has improved significantly thanks to their adaptation and utilization of market opportunities. Positive contributions have been made to the picture of export and import growth in the first 2 months of this year. This is also the basis for expecting that the annual export target will grow by 9.5% compared to the same period as set out. The positive result is due to the increase in the number of new export orders. The efforts and flexibility of businesses in the context of recovering consumer demand in the world market have been relatively effective.

Diversified markets

According to Ms. Duong Tu Trinh, Deputy Director of Duc Thien Co. Ltd. In Tan Uyen city, diversifying export markets will pose many new challenges for businesses, requiring the trade promotion program to be enhanced and expanded, accompanied by strategic policies of the State to support import and export businesses more effectively.

“In the current global and domestic economic context, there are many more positive factors. The US economic policy's messages of halting interest rate hikes and considering reducing interest rates in 2024 will boost consumer spending growth, not only in the US but also globally. However, businesses still face challenges related to some current issues directly affecting sustainability. In the near future, businesses will encounter many challenges in aiming for green criteria,” said Duong Tu Trinh.

According to Mr. Vo Van Minh, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee, in order to create conditions for businesses, departments, and localities to proactively participate, simplify procedures to reduce financial costs and time. More than ever, efforts to reform the business environment need to accelerate and be more substantial to strengthen trust, create motivation for production and business for enterprises.

To take advantage of the market opening opportunity, the key issue to focus on is developing a source of goods for export, meeting quality requirements, increasing the value-added content, and ensuring compliance with rules of origin to enjoy preferential customs duties under free trade agreements. Furthermore, businesses need to quickly seize opportunities, take advantage of benefits from free trade agreements to enjoy many benefits from low tax rates, support mechanisms among members, through the removal of non-tariff barriers.

Reported by Tieu My – Translated by Vi Bao