Part 1: Large trade surplus
Overcoming difficulties caused by the 4th wave of Covid-19 pandemic, with the ceaseless efforts by all-level authorities and the business community, the province’s import and export activities continued maintaining growth with trade surplus reaching nearly US$4.6 billion over the past 9 months.
Figures of faith
In the first nine months of 2021, the complicated developments of Covid-19 pandemic made the supply chain of raw materials face many difficulties, affecting enterprises‘production and export activities. Thanks to the support from the Government, the Ministry of Finance, provincial People's Committee, provincial People's Committee opportunely removed difficulties, ensuring quick customs clearance of goods; set up plans for Covid-19 prevention-control and production assurance in safe conditions, facilitating import and export activities. As an industrial locality, along with focusing on stamp out the pandemic, Binh Duong has also put forward many solutions to help enterprises not break their production chain with the “3 on-site”, "1 road, 2 places" and “green" models. Focusing on implementing the "dual goals" of Covid-19 prevention-control and production development, the province has so far had nearly 3,200 enterprises registering to operate with more than 264,000 employees.
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Production at Yatch Technology Company in the Bau Bang Industrial Park
Over the past 9 years, the province’s import-export turnover was estimated at more than US$ 24.53 billion, up 26.7% over the same period, or 79.8% of the year plan. Of these, the domestic economic sector reached US$ 4.68 billion, up 31.3% while the foreign economic sector gained US$ 19.84 billion, up 25.6%. Most of the province’s key export items like machinery, equipment, cashew nuts, computers, electronic devices and components, wood products, footwear, apparel...still maintained growth against the same period.
Overcoming difficulties caused by Covid-19 pandemic, wood industry in the first nine months of 2021 obtained nearly US$ 5 billion in export turnover, up 28.1% over the same period or 20.3% of the province’s total export value. Textile and garment industry during the period also achieved nearly US$2 billion in export turnover, up 10.5% against the same period or 8% of the province’s total export turnover. Whilst, footwear industry’s export turnover was estimated at US$ 1.41 billion, up 14.4% over the same period or 5.7% of the province’s total export turnover. The export value of machinery, equipment and other spare parts were estimated at US$ 3.5 billion, up 44.4% compared to the same period or 5.7% of the province’s total export turnover.
In September, although the pandemic was still complicated, the province’s export sign is gradually getting better, marking the efforts by the business community in recovery as the local government tried to "green" the locality. The province’s total export turnover in September was estimated at more than US$2.27 billion, up 20.1% compared to the previous month. All the province’s key export industries also grew again compared to August, creating a good sign for economic recovery and development after many months of fighting Covid-19 pandemic.
All materials prepared
The province’s import turnover over the past 9 months was estimated at US$ 19.9 billion, up 34% over the same period or 82.1% of the year’s plan. In September alone, it was estimated at more than US$ 2 billion, up 9.6% compared to the previous month and up 0.3% over the same period. This figure showed that so far, enterprises have been proactive in the source of imported materials for production. This is an important factor for enterprises to resume operations smoothly in conditions of safe goods circulation. The directions of the Government and provincial People's Committee have been concretized by sectors with specific actions, clearing obstacles in the transportation of goods, creating favorable conditions for enterprises to develop. All contributed to maintaining the province's trade surplus of more than US$ 4.6 billion over the past 9 months.
Meanwhile, wood enterprises are currently looking for ways to solve difficulties in materials, resuming supply chains in the context of the prices of timber materials and logistics costs on increase in order to opportunely recover production in the post-Covid-19 period, striving to achieve their target of export turnover at US$ 14.5 billion this year. Leader of Binh Duong Furniture Association (BIFA) said that the reorganization of the supply chain has also helped enterprises have better adaptation to major changes in the global supply chain, which is taking place strongly amid Covid-19 pandemic.
Vo Quang Ha, General Director of Tavico Company, a member of BIFA said that the above challenge is an opportunity for wood enterprises to learn and experiment with other materials. Along with recalculating their production problem to optimize materials, wood enterprises can cooperate to buy materials together to have large orders with stable prices. The joint purchase orders for materials will help wood enterprises to optimize transportation costs, which is a headache of the global supply chain. (To be continued).
Nguyen Phuoc Viet Dung, Director of provincial Customs Department: Every year, provincial Customs Department carries out procedures for about 6,000 enterprises. In order to create favorable conditions for enterprises’ import and export activities amid Covid-19 pandemic, provincial Customs Department has established quick response teams to handle problems, ensuring quick customs clearance. Provincial Customs Department has also regularly received information, kept in touch with enterprises temporarily suspending operations to remove difficulties, opportunely putting forward support solutions.
Reported by Tieu My-Translated by Kim Tin
