Provincial exports are thriving

Enterprises in Binh Duong province achieved positive results in import and export activities during the first 8 months of 2024. Taking advantage of the recovering world market, companies actively pursued new orders and explored emerging markets.

Diversifying export markets helps businesses proactively stabilize product output. In photo: Electronic component production line at Kim Sang Company (Tan Uyen City)

 Export markets begin to recover

In the first 8 months of 2024, the province's total export turnover reached US$22.5 billion, an increase of 11.3% over the same period in 2023. This growth rate marks the recovery of the export market of Vietnamese enterprises.

According to textile and garment enterprises, the improvement in exports is because major markets such as the United States and Europe have controlled inflation, helping to increase purchasing power. In addition, Vietnamese textile and garment enterprises have been actively expanding and diversifying markets and customers, thus they can proactively find outlets for their products. Along with textiles, footwear is also one of Vietnam's key export industries. According to Ms. Phan Thi Thanh Xuan, Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association, with the current growth rate, this industry's export turnover is expected to reach US$26-27 billion this year.

Mr. Nguyen Quang Vu, Chairman of Binh Duong Leather and Footwear Association, said that currently, leather and footwear enterprises in Binh Duong have enough export orders for the whole year 2024. In addition, thanks to stable domestic production conditions, the number of orders in the last months of the year has shifted from some Asian countries to Vietnam, opening up good prospects for the leather and footwear industry in the coming time. However, Mr. Vu said that the leather and footwear industry faces many challenges, especially when key export markets such as the United States and the European Union require increasingly strict traceability of raw materials, through new regulations in the near future.

Wood production activities at Danh Tung Company Limited (Thuan An City)

Proactively diversify markets

Mr. Nguyen Thanh Toan, Director of the Provincial Department of Industry and Trade, said that the department has been actively disseminating and explaining the commitments and opportunities for leveraging incentives from the Free Trade Agreements (FTAs) to the business community and industry associations in order to diversify export markets. Additionally, the department supports businesses in promoting trade in new and potential markets.

“We also invite enterprises and industry associations to attend trade promotion conferences with the Vietnamese Trade Office system abroad. Through attending the conference, enterprises and industry associations will be updated by the Vietnamese Trade Office system abroad on information about the foreign market situation; regulations, standards, and conditions of foreign markets that may affect Vietnam's import and export activities, and recommendations for localities, enterprises, and industry associations on import and export," said Mr. Toan.

Vietnamese enterprises are aiming to tap into the potential of countries with large Muslim populations, as per the Department of Industry and Trade. However, businesses looking to enter this market need to be mindful of the rigorous standards for Halal food certification.

Ms. Quyen Thi Thuy Ha, Head of the Vietnam Trade Office in Osaka (Japan), said the economic partnership between Vietnam and Japan holds tremendous promise. By combining Vietnam's manufacturing strength with Japan's technological advancements and quality management, both countries stand to reap significant benefits. Currently, the two countries participate in four bilateral and multilateral FTAs, typically the Regional Comprehensive Economic Partnership (RCEP) - a new generation FTA between ASEAN and 5 partners: China, Korea, Japan, Australia, and New Zealand. RCEP is Vietnam's largest supplier of electronic parts and components, accounting for 66% of the total import value of this group of goods. From there, products exported to Japan will also have an advantage because of reduced production costs and prices...

 Reported by Tieu My, Cam Tu - Translated by Ngoc Huynh