Export activities of enterprises in the province in the first 8 months 2019 continued to have many advantages. Many businesses had stable and long-term export contracts. Notably, in August, goods export of enterprises in the province increased by 52.5% over the previous month and by 54% over the same period in 2018.
In the first 8 months of 2019, provincial export turnover of wood industry increases by 15.1% over the same period in 2018. In photo: Timber production at Long Viet Technology Joint Stock Company (Di An Town).
Trade surplus of $4.5 billion
According to Department of Industry and Trade, with the signing of free trade agreements, like EVFTA and IPA, continued to open up many opportunities for agricultural exports (rice, coffee, honey, livestock, fruits, seafood ...), textiles, footwear, wood furniture ... when the EU has eliminated most import tariff lines.
In August 2019 alone, the province's export turnover was estimated at $ 3 billion, up 52.5% over the previous month and up 54% over the same period last year, of which the domestic economic sector reached $ 551.8 million, foreign invested sector reached $ 2 billion 702 million. Generally, in the first 8 months of 2019, the province's export turnover was estimated at $ 17 billion 534 million, up 13.1% over the same period last year, of which the domestic economic sector reached $ 3 billion 356 million, foreign invested sector reached $ 14 billion 953 million.
Remarkably, the trade surplus of the whole province in 8 months was $ 4.5 billion. Most of provincial key export items continued to achieve good growth over the same period last year, such as textiles up 13.5%, footwear up 13.5%, wooden products up 15.1 %, electronic components increased by 14,6% ...
Nguyen Van Danh, Director of Department of Industry and Trade, said that the export of domestic enterprises continued to be a dynamic force in Vietnam's trade activities in general, Binh Duong province in particular during the first 8 months of 2019. This result shows that the diversification of export markets and taking advantage of integration opportunities have been well implemented by domestic enterprises.
Still having many challenges
Only in August, the province's timber industry has an estimated export turnover of $ 355 million, up 2.4% over the previous month and up 15.1% over the same period last year, accounting for 10.9% of provincial total export turnover. Generally, in 8 months of 2019, the province's timber export was estimated at over $ 2 billion 082 million. The main export markets of this industry are the United States, Europe, Japan, South Korea ... continued to maintain good growth. In particular, the wood industry recorded an increase in consumption in new markets such as Canada, the Eurasian Economic Union...
Dien Quang Hiep, Chairman of BIFA, said CPTPP and EVFTA as a lever to boost the development of timber industry. It was forecasted that in the coming time, export orders of wood industry would increase.
“Our country's timber industry is highly competitive. However, our growth rate comes from the use of labor and quantity to compete, while developed countries invest in design, brand name, automation technology, modern factories... We must solve this problem for the wood industry to develop sustainably”, Mr. Hiep said.
Meanwhile, Mai Huu Tin, Chairman of Binh Duong Business Federation, said that China’s strong devaluation of Chinese Yuan in August in response to the United States in the trade war between these two countries, was expected to cause many impacts on the export of wood products in particular and other export products of our country in general. Accordingly, Vietnam's commodity prices will be less competitive than those of China, and the prices of goods in traditional export markets such as the US and EU would increase due to the impact of exchange rates, leading to purchasing power of consumers would decrease.
To textile industry, the export turnover of enterprises in the province in August 2019 was estimated at $ 323 million, up 2.5% over the previous month, up 13.5% over the same period last year, accounting for 9.9% of provincial export turnover. Thus, in the first 8 months, export turnover of this industry reached nearly $ 1 billion 895 million. The province's textile and apparel exports continued to maintain a fairly and stable growth. However, according to Department of Industry and Trade, export growth rate of textile and garment industry has not made a breakthrough as expected.
In the current context, improving productivity and quality of textile products is a prerequisite. However, at present, not all businesses have enough financial resources to invest in improving modern machinery and equipment to meet big orders, improve governance, build brand name ... Representatives of Department of Industry and Trade said that the department sent a delegation of textile enterprises to participate in Magic Show fair (from August 11 to 14, 2019) and survey the US market. The delegation had initial success, specifically the US partners were very interested in cooperating with textile enterprises of Binh Duong.
Reported by Tieu My – Translated by Ngoc Huynh
