In 2020, total GRDP of the province has been estimated to be increased by 6.78% which is double the average increment of the nation.
Efforts to get through challenges
According to Binh Duong provincial Department of Planning and Investment, average GRDP per capita has gained VND 150.1 million as the economic structure of industry-service-agriculture-tax minus product subsidiary is 65,97% - 22,69% - 3,23% - 8,11% accordingly. Of the structure, industrial production continues to develop with proactive transition of the industry as the key economic sector creating momentum for urban, service, and commercial development. 1,383 enterprises of industrial production are operating in the province ton contribute to raise industrial production index into 8.02%.
Production is on-going at DS Vina Company in KSB Industrial Park of Bac Tan Uyen district
In 4 consecutive months of March, April, May and June, the national economy was facing serious decline due to the effects of Covid-19 pandemic. At first, materials for industrial production was lack and then the exportation market was narrowed. Majority of production and business fields have been severely affected. Concurrently, the importation and exportation activities have been under strong effects due to interrupted inputing materials and the exporting markets were reduced.
In such situation, enterprises in Binh Duong have timely adjusted production and business plans, seeking for more customers, new exportation and increment of domestic consumption. Ever since the Q2 of 2020, enterprises have recovered relatively well and goods were able to flow in exportation into markets. Provincial exportation revenue was estimated to increase by 8.5% and importation 7.6%. Commercial surplus of the province in 2020 gained nearly USD 6 billion.
According to an unnamed representative of ViNa DS Company, at the peak of the Covid-19 epidemic, the company was greatly affected in terms of production and exportation. However, thanks to good control of the epidemic by Vietnamese government, the businesses have mitigated their losses. Because of the good control of the disease, partners also trusted in delivering large orders to businesses. Therefore, in addition to maintaining the signed orders, enterprises can also sign new contracts with many foreign partners. It is expected that the company's growth rate in 2020 will be 1.5 times higher than that of 2019.
According to Phan Le Diem Trang, Vice Chairwoman of Binh Duong provincial Textile and Apparel Association, in 2020, the textile and garment industry has faced great difficulties in production and exportation. Enterprises have promptly adjusted their plans by expanding the production of non-woven fabrics to supply masks and protective clothing factories for consumption in the domestic market and for exportation. Therefore, the company has reduced damage caused by the disease and ensured jobs and income for its employees. In the fourth quarter of 2020, most businesses had their orders back. This was an important premise for the textile industry to overcome difficulties and enter a new stage.
Momentum for development
2020 is the last year of the 2016-2020 period, maintaining a high economic growth rate will create momentum for economic development in 2021 and 2021-2025 period. For this year, although the Covid-19 epidemic occurred, the disbursement of foreign direct investment capital of Binh Duong was still high. This was the premise for economic growth in the coming years when projects and businesses are back into operation. Besides, in this year, the number of newly established enterprises in the nation with total registered capital of VND 63,909 billion, proving that the confidence of the business community and the people in Binh Duong's investment environment is increasing.
Binh Duong provincial People's Committee determined that, by 2021, to focus on creating breakthroughs, restructuring the economy associated with innovation in growth models, and improving productivity, quality, efficiency and competitiveness. At the same time, the collective economy is developed, the investment and business environment are improved, and interdisciplinary legal support for enterprises, especially small and medium enterprises are increased along with selective investment attraction to develop industries with high technology contents and to attract trade in high quality services and to increase mobilization and efficient use of investment resources of the economy.
Pham Ngoc Thuan, General Director of Becamex IDC said that during the Covid-19 epidemic, Becamex IDC has also promoted online investment promotion activities to many countries in order to connect and create conditions for investor wishing to invest into Binh Duong. In the new period, Becamex IDC continues to pay attention to projects with high technology content and high quality commercial and service projects to contribute to the promotion of provincial development in line with the orientation.
Le Hoai Nam, Deputy General Director of KSB Industrial Development Company in Bac Tan Uyen district said that although the Covid-19 epidemic was complicated in the year, foreign direct investment projects into industrial parks have been quickly disbursed. This means that the workshop will be completed soon to put it into production, contributing to increase industrial production value in the province for the time to come.
Reported by Tieu My - Translated by Vi Bao
