Export activities in the last quarter of 2023 are forecast to continue to improve, as inflation in major economies tends to cool down and inventories in countries are gradually decreasing.
Orders are back
According to the assessment of Provincial Department of Industry and Trade, in the first 9 months of 2023, production output of some key industries in Binh Duong decreased due to increased input costs and a decrease in the number of orders. “Therefore, the province is trying to find solutions to overcome difficulties and regain growth momentum for import and export. In addition, the initiative and flexibility of export enterprises, seizing opportunities for recovery of goods from import markets, effectively exploiting new-generation FTAs are important factors", said Nguyen Thanh Toan, Director of Department of Industry and Trade.
The good news is that, starting from September, some key export industries accelerated production for new orders, leading to increased export turnover, creating momentum for production development in the last months of the year. According to businesses, demand for goods also increased during year-end festivals, opening up chances for increasing consumption and production demand in the coming time.
Confirming this issue, Le Manh Ha, CEO of TBS Logistics Company, said that the number of goods going through warehouses showed signs of increasing in September. This is a good sign for production activities and economic growth. This observation coincides with export figures in September 2023. Accordingly, in September the province's export turnover was estimated at US$3,002 million, up 6.5% over the previous month and up 25.9% over the same period last year. Of which, the domestic economic sector reached US$568.1 million, up 6.3% over the previous month and up 22.9% over the same period last year, FDI economic sector reached US$2,434 million, up 6.5% over the previous month and up 26.6% over the same period last year.
Textile and garment, one of Binh Duong's key export industries. In photo: Production line at Hung Kiu Garment Company in Phu Chanh Industrial Cluster.
Proactively seize opportunities
Wood processing production is one of the province's key industries in terms of export turnover, but the global economic crisis has affected the operations of businesses. Although there are many difficulties, the outlook for Vietnam's wooden furniture export market in the coming time is forecast to recover well when the economies in countries importing Vietnamese wood and wood products show signs of growth.
In September 2023, the province's export turnover of wood products is estimated to reach US$583.2 million, an increase of 15.7% over the previous month. Hoang Yen, Director of Rochdale Spears Co., Ltd. said that in the first 9 months of this year, the company strived to maintain production and stabilize workers’ lives. “Faced with difficulties, we accept small orders. In 2023, we set a target for exports to be flat compared to 2022, the company still has enough orders for that target. The most favorable thing is that workers are very happy when the factory still maintains production and overtime works as before, labor productivity is maintained," Yen added.
Pham Thi Xuan Trang, Chairwoman of Binh Duong Textile and Apparel Association, said that the textile and garment export situation is forecast to remain difficult; many businesses so far have not had enough orders for the last months of the year. However, the good news is that from August 2023, textile and garment export turnover has recorded the highest value from the beginning of the year. In the last months of the year, export turnover would increase sharply. In September 2023, textile and garment export turnover is estimated to reach US$314.9 million, an increase of 19.2% over the previous month.
According to Nguyen Quang Vu, Chairman of Provincial Leather Shoes and Handbags Association, to maintain production, leather shoe enterprises organized trade promotion activities such as product introduction fairs, supply - demand connection, and e-commerce sessions to continue stimulating exports. In September 2023, export turnover is estimated to reach US$133.9 million, up 16.5% compared to the previous month.
Toan said that to support businesses, Department of Industry and Trade regularly works with industry associations to update the production and business situation to give support, stabilize and maintain production and business. This agency also provides information and export forecasts in the last quarter with many positive signals for businesses to proactively do business.
In September 2023, the province's import turnover is estimated to reach US$2,071 million, up 14.6% over the previous month and up 4.7% over the same period last year. Of which, the domestic economic sector is estimated to reach US$302.9 million, up 13% over the previous month and up 7.6% over the same period last year; FDI economic sector is estimated to reach US$1,768.5 million, up 14.8% over the previous month and up 4.2% over the same period last year. In the first 9 months of 2023, imports mainly were machinery, equipment and some raw materials for manufacture.
Reported by Tieu My - Translated by Ngoc Huynh
