Export turnover increased in the first quarter of this year. This is a joyful signal but there remain difficulties that enterprises should improve to grasp opportunities.
At Thai Binh Shoes Group in Di An town.
Advantages of export
Exporters’ production and business reached many advantages in the first quarter of this year, according to the provincial department of Trade and Industry. After crisis was over, demand on goods consumption shot up in some traditional markets such as the US, EU, Japan, ASEAN and so on, this helped skyrocket export orders.
In addition, advantage of input material price was steady, so export turnover of Binh Duong province rose sharply. In the first quarter of 2014, the export turnover of the whole of the province was estimated at more than US$3.195bil, a 12.7% increase from the same period last year and reached 18.9% from its yearly plan. Specifically, the domestic economic sector gained more than US$570mil, a 21% increase while foreign economic sector obtained US$2.625bil, a 10.9% increase from the same period last year. In March, 2014, export turnover was estimated at US$1,069bil, a 15% increase against the previous month.
Garment was the area winning the highest export turnover in the first quarter of this year with US$448.9mil, a 28% increase against the same period last year, accounting 14% of the entire province’s export turnover. Most of the local exporters gained export orders lasting till the end of the second quarter of 2014, even other obtained orders till the end of the third quarter.
In the meantime, footwear sector also attained a strong growth with US$289.8mil in revenue, a 24.9% increase from the same period last year, amounting to a 9.1% density of the whole province’s export turnover. Right from the early year, the local footwear exporters gained advantages of competition from other nations’ footwear products imported into the EU.
Beside, export turnover of wood processing sector and handicraft sector jumped about 8%. Specifically, timber processing sector’s export revenue reached US$388mil, accounting for 12% of local export turnover. Until now, most of the companies have gained orders lasting till the end of the second quarter of this year. These enterprises encompass Kim Thanh A Co.Ltd. and Bao Hung Co.Ltd while Sao Nam Co.Ltd. alone has enjoyed a production contract till the end of September of this year. Handicraft sector’s export turnover was estimated at US$26.6mil, an 8% increase over the previous month, accounting for 0.8% the whole province’s export turnover.
Improving competition
Binh Duong’s export situation in the first quarter of 2014 reached remarkable results and was anticipated to win many more advantages. Especially, with opportunity of participating in the Trans-Pacific Partnership agreement (TPP), Vietnam’s some items such as garment and footwear will enjoy many benefits from a 0% tariff. In addition, the ASEAN Economic Community (AEC) shall be the goal of regional economic integration by 2015. AEC envisages the following key characteristics: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy.
Tran Van Rang, vice director of the provincial department of Trade and Industry said that joining in TPP, AEC will help enterprises spur their production and business. However, aside from advantages, companies will encounter challenges of fierce competition.
In order to reinforce and accelerate export of Binh Duong in particular and Vietnam in general, the Government, the provincial People’s Committee firstly should set out supportive policies to help domestic market develop strongly while enterprises should actively build strategies and business measures, especially investment in technology to turn risks into opportunities and advantages.
Reported by B.Anh – Translated by A.C
