During the first 6 months of the year, although there were unfavorable things in many aspects, such as gasoline prices, electricity fluctuations, unstable weather…, the production and export of domestic enterprises in the province achieved a good growth.
In the first 6 months, the export of domestic enterprises in the province grows quite well. In photo: Production activities at Kim Phong Wood Company (Kim Huy Industrial Park, Thu Dau Mot City).
Many industries achieve impressive growth
According to leaders of Binh Duong Furniture Association (BIFA), in the first 6 months, the production and business activities of member enterprises reached 92% of the 2019 target, up 16% compared to 2018; It is forecasted to reach over 180% of the 2019 target for the whole year, an increase of 32% compared to 2018. Specifically, the export turnover of member enterprises was estimated at $1,528 billion in the first 6 months. The main export markets for this industry are the US, European Union, Korea, China... all achieved good growth rates. In particular, many member enterprises achieved growth rates of over 100% over the same period in 2018, such as Nguyen Thanh Company, Tien Trien Company, Me Kong Furniture Company...
One of the advantages of BIFA member enterprises over the past 6 months was the US-China trade war, whereby orders from China were shifted to other countries, including Vietnam, thus the number of orders increased, creating a stimulus for businesses to continue expanding their production and business. However, there is a large wave of investment and expansion in timber industry, businesses in this industry also face many difficulties, which is an increasingly scarcity of labor supply, thus many orders cannot be completed on schedule.
MeanwhileLe Hong Phoa, Chairman of Binh Duong Textile and Garment Association, said that their member enterprises now had orders for the third quarter of 2019, in which many businesses had orders for the whole year 2019 and were negotiating to sign new orders. Export turnover in the first 6 months of their member enterprises was estimated at $1.387 billion, up 17.1% over the same period last year.
Regarding leather shoe industry, according to Nguyen Quang Vu, Chairman of Binh Duong Leather and Bags Association, the export turnover of their members in the first 6 months was estimated at $1.484 billion, up 13.9% compared to in the same period of 2018. In particular, the footwear industry achieved a good growth rate in most major export markets such as Europe, the US, Taiwan, Japan and South Korea. By this time, most of member enterprises had export orders until the end of the third quarter of 2019, the number of export orders increased by 10-12% over the same period in 2018.
Ceramic industry of the province achieved a stable growth in the first 6 months (up 7.2% compared to the same period last year), the export turnover was estimated at $94.9 million. Ceramics enterprises earned export orders until the end of 2019, the number of orders increased by 10 - 15% over the same period in 2018.
Good exploitation of opportunities
According to Ministry of Planning and Investment, one of favorable factors to enterprises in the first 6 months was that big markets, like the US, European Union, and Southeast Asia, are all main export markets of Vietnam, the economy developed steadily. Besides, Vietnamese enterprises gradually took part in the global supply chain. However, what concerns domestic enterprises now is the fluctuations in the world financial market, in the US – China trade tension, would affect Vietnamese enterprises in the coming time.
Provincial Department of Industry and Trade said, while the US-China trade war is going complicated, Vietnam's timber products exported to the US market would likely be affected. Because of the additional US tax policies on Chinese exports, especially the risk of being investigated and tax avoidance of Chinese enterprises investing in Vietnamese market. Besides, the US Government is implementing many measures to stimulate domestic production growth, including wood industry. Therefore, it is forecasted that processed timber products in particular and other commodities in general exported to the US market would be subject to a close supervision in the coming time.
Regarding textile industry, according to Department of Industry and Trade, there are many advantages in the export market. In addition, the supply chain is gradually being completed as the foreign capital inflow into domestic textile and dyeing industry is increasing. In particular, the new generation of FTAs, such as CPTPP, EVFTA, also opens great incentives for the textile and garment industry, creating a great attraction for orders in both textile and footwear industry in the country.
CPTPP has been implemented since the beginning of this year; EVFTA has been signed on June 30, opening a good prospect for Vietnam's exports in 2019. However, Vietnam's export is assessed to have many challenges. In particular, the US-China trade war is taking place fiercely, in the immediate future, bringing many advantages for domestic enterprises, but in the long term, the trend of shifting orders from Chinese enterprises to neighboring markets would increase and entail complicated and unpredictable problems.
Reported by Tieu My – Translated by Ngoc Huynh
