From the beginning of this year, industrial production sector in the province continued to develop stably. Enterprises in the province enhanced investment in production technology to create high-quality products to meet market requirements.
To sustain a good growth momentum
In the first 6 months of 2019, provincial industrial production index was estimated to increase by 8.08% over the same period last year. Most enterprises in the province signed production and export orders until the end of the third quarter of 2019, some enterprises signed orders for the whole year 2019.
According to provincial Department of Industry and Trade, in the early months of this year, although the domestic and world economies had many risks and challenges, the production and business situation of domestic enterprises in general and Binh Duong province in particular sustained its stable development. This proves that the province has well implemented the Government’s solutions and promptly removed difficulties, boosted production and business of enterprises.
Binh Duong industrial production continues to develop steadily. In photo: Production activities at Kumho Vietnam Company (Ben Cat Town).
Besides, good impacts from institutional reforms, creating an investment and business environment, attracting domestic and foreign investment of the Government, and the elimination of tariff barriers according to the roadmap of Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the European Union-Vietnam Free Trade Agreement (EVFTA) brought favorable conditions for Vietnamese goods to be exported to these markets.
From the above advantages, industries’ associations such as textiles, lacquer and sculpture, wood processing, ceramics, electro mechanics, leather and footwear... in the province have been operating effectively. According to Nguyen Van Duoc, Director of Department of Industry and Trade, the department regularly directed professional units to closely follow the establishment, monitor the production and business situation of enterprises and industries’ associations to make suggestions to provincial People's Committee and Ministry of Industry and Trade to promptly solve difficulties of enterprises, thereby creating favorable conditions for businesses to stabilize production and business development.
Currently, Department of Industry and Trade is surveying and assessing the situation and proposing mechanisms and policies to support enterprises located outside industrial parks and industrial clusters in southern areas of the province to convert their functions, relocate them into industrial parks and clusters. Additionally, the department carried out 5 projects to sustain the good growth rate, such as: a project to improve the localization rate, technology content and knowledge content in key export products and support services in the province until 2025, orientation towards 2030; Project of orientation of trades and projects calling for investments in industry and trade; Project of developing wood processing industry in Binh Duong province till 2025, orientation towards 2030...
A prerequisite solution
In order to keep pace with the integration trend, enterprises in the province focused on improving and innovating technology in order to improve production efficiency and timely meet the demand of orders. Timber enterprises in the province are facing an international market opportunity. Currently, Binh Duong timber enterprises are changing management thinking according to professional model, investing technology to improve labor productivity and competitiveness. Notably, in the first 6 months of 2019, export value of Vietnam's timber to the US market increased by 34.7% compared to the same period in 2018. The US is currently one of Vietnam's largest timber export markets.
According to Duong Thi Tu Trinh, Director of Thuong Nguyen Wood Processing Company, to survive and expand export market, many wood processing enterprises boldly invested in modern machinery and production technology. This will help the company improve labor productivity, minimize manual labor ... thereby creating more products, new designs, meeting increasing requirements of the market.
The leader of Minh Long 1 Company said that their company continuously renovated technology to raise the quality of products, namely, they succeeded in creating a breakthrough ceramic production technology with just one burning time. The company now uses robots in their production process; this is also a stepping-stone for the company to shift itself towards automatic production process.
Le Van Minh, Vice Chairman of Binh Duong Furniture Association (BIFA), said that investment in technology and management innovation was now a vital solution for domestic timber enterprises. In addition, businesses need to focus on improving the role and responsibilities of employees; take good care of worker’s lives so that they would have long-term commitment to the companies. A major challenge facing domestic wood industry is a sharp increase in wood industry’s capital inflow from China to Vietnam. This would make our timber products to be in a strict control of American Trade Agency when exporting to this market in the near future...
Reported by Tieu My – Translated by Ngoc Huynh
