A relatively good import-export turnover growth over a difficult year has created a breakthrough for the province's import and export for the time to come. In particular, the first month of 2021 good signs from exporting enterprises to potential markets such as the US, EU, and Japan have been recorded in a promising manner for a favorable year.
Officers of department of industry and trade are having a look on difficulties brought about by Covid-19 at a shoe-maker in the province
Good recovery of apparel and shoe-making
According to the calculation of the industry and trade department, the export turnover in January 2021 was estimated at USD 2.426 billion, increasing by 1.1% over the previous month and 61.7% over the same period. In which, the domestic economic sector gained USD 412.5 million, increasing by 7.2% over the previous month and 2.2% over the same period; the economic sector of foreign investments gained USD 2.0135 billion US dollars, increasing by 4.6% over the previous month and 7.5% over the same period. Import turnover is estimated at USD 1.860 billion, decreasing by 1.6% from the previous month and 0.1% over the same period. The growth rates in the first month of the year when the epidemic in the world still has many difficulties are the hint of a good exportation market recovery.
Over the past time, the apparel and footwear industries are two of the industries heavily affected by the Covid-19 epidemic. However, in the last months of the year, the growth of both industries has been prosperous. Currently, textile and garment enterprises have carried out new measures to change production and business methods to suit the new situation. The Vietnam - EU Free Trade Agreement (EVFTA) has especially enforced leaving great expectations for the industries to grasp a great opportunity to expand the exportation market. As for the textile and garment industry, according to Mr. Nguyen Dinh Thai, Director of responsibility and social obligation of Esprinta Co., Ltd., expected that the trade agreements will open up opportunities for Vietnamese businesses to access great apparel importation markets of the world. At the same time, a long-term competitive advantage is created for Vietnam's textile and garment industry in the EU markets.
Previously, enterprises have taken advantage of the no-order period to organize training courses and improve skills for workers in order to increase labor productivity while diversifying exportation markets instead of focusing on a few set markets as before.
In order to make good use of the advantages of EVFTA, the Textile and Apparel Association also thinks that exporting enterprises need to actively assess the demand for products and the capacity of the target export market to select products that can meet the origin requirements by connecting domestic members to form a supplying chain to meet origin requirements. At the same time, a team of high-quality and stable personnel should be built to ensure production and business activities. Production and quality control systems are organized to be capable of meeting high standards of European and North American markets.
Footwear businesses are very hopeful that by 2021 they will completely recover and speed up. Up to now, the recovery of the footwear industry is said to be faster than other industries do. Many businesses have received purchase orders until mid and late 2021 from the largest footwear exportation markets, which are countries of the European Union and the United States, of Vietnam as well as Binh Duong. The leader of Dong Hung Joint Stock Company at Song Than 2 Industrial Park shared that the company received the purchase orders until mid-2021. Currently, the market has not been fully recovered; however, exports of shoes and bags are expected to increase again as the free trade agreements take effect.
Efforts made to assist enterprises
According to Binh Duong provincial Department of Industry and Trade, at the end of 2020, besides the general difficulties, the province's export activities still receive good signals. Most of the export enterprises keep the spirit of optimism and take the initiatives in production and business activities. In that general situation, in order for the export picture to flourish more on entering the New Year of 2021, the provincial authority has been implementing many key solutions. In particular, the department focuses on supporting to improve the competitiveness of exporting enterprises against unpredictable fluctuations of the world markets on the basis of enhancing trade promotion activities and market information.
The business community should continue to promote the application of information technology to promote and build Vietnamese brands through e-commerce environment and digital technology platforms, making it able to save costs and increase efficiency and transparency for commercial activities. At the same time, it is necessary to keep on strengthening coordination with overseas e-commerce partners and floors to organize support for businesses in their expansion of sales markets and development of new distribution channels through e-commerce borders. Ministry of Industry and Trade has implemented many solutions to clear the flow of goods by directing deals in markets to assess consumption demand, market capacity, tastes, export proportion and ability to grow of Vietnamese goods to compensate for the export decline caused by the Covid-19 epidemic. In particular, special attention should be paid to make use of the incentives brought by EVFTA.
Reported by Tieu My – Translated by Vi Bao
