With positive signals from the U.S. market, the business community in Binh Duong is making efforts to increase exports to this market. Province-based companies are aware of the potential risks of trade defense lawsuits that may arise as exports grow and they are actively preparing response strategies.
Positive signals
According to statistics from provincial Department of Statistics, in the first nine months of 2024, the U.S was the largest export market for the province, with export turnover exceeding US$11.8 billion, accounting for 45.4% of the province’s total export turnover, an increase of 11.8% compared to the same period in 2023.
Production activities at Rolchdale Speare Company in Tan Uyen city
Nguyen Liem, Chairman of Binh Duong Furniture Association noted that the U.S. market is showing many positive signals, promising continued growth in wood and wood product exports in the coming months. “Since early this year, the U.S has been the largest export market for wood and wood products from Vietnam, accounting for over 80% of the total wood export turnover of the province. The U.S Federal Reserve indicating a halt in interest rate hikes and considering interest rate cuts in 2024, along with the resolution of inventory issues and an increase in home sales in the U.S is an excellent signal for the furniture export market…These are favorable conditions for Vietnamese goods, including wood and wood products, to be exported to the U.S”, stated Mr. Liem.
However, exporting wood and wood products to the U.S. still faces challenges such as trade defense issues related to furniture products and rising logistics costs. Vuong Sieu Tin, Vice President of Binh Duong Ceramics Association, expressed optimism that the U.S. will soon ease spending restrictions to stimulate consumer demand. Additionally, he hopes that the Red Sea tensions will subside, leading to lower logistics costs for the U.S. market, which would reduce transportation expenses and ultimately lower product prices for consumers.
Supporting market development
Nguyen Thanh Toan, Director of provincial Department of Industry and Trade (DoIT) mentioned that Binh Duong’s key products have already proven their quality and are favored by consumers. Provincial DoIT will continue supporting businesses in promoting trade through e-commerce and social media platforms. Engaging in trade promotion will help businesses update new trends and understand customer preferences, enabling them to develop suitable business strategies.
Mai Hung Dung, Member of provincial Party Standing Committee and Permanent Vice Chairman of provincial People’s Committee stated that Binh Duong has always encouraged businesses to actively participate in trade promotion to foster growth and enhance brand value. To improve product quality and meet international standards, Binh Duong is implementing several training and technical support programs for businesses. These programs focus on improving workforce skills, optimizing production processes and enhancing product quality to meet the stringent demands of the U.S. and European markets. Binh Duong has also encouraged businesses to apply green technology and invest in environmentally friendly products to meet the growing international demand for sustainable products.
One of Binh Duong's current objectives is to make transition from basic processing and manufacturing to high-tech production, creating higher-value-added products. This shift helps businesses become more competitive, contribute to environmental protection and promote sustainable development. Binh Duong is actively encouraging investment in advanced technology, automation and the application of smart production solutions. This approach is crucial for businesses, not only meeting international market requirements, but also optimizing costs and increasing production efficiency. Binh Duong has also strengthened connections between businesses and international business associations and federations.
“To support local businesses in expanding internationally, Binh Duong is investing in traffic infrastructure, ports and storage systems to reduce logistics costs for businesses. The road networks connecting Binh Duong with seaports have been significantly improved, making it easier for businesses to transport goods efficiently and save time”, said Mr. Dung.
Reported by Tieu My-Cam Tu-Translated by Kim Tin
