As being predicted by experts, Chinese investors in the furniture industry have quickly poured capital into Binh Duong, especially when the ASEAN Economic Community (AEC) and the Trans-Pacific Strategic Economic Partnership Agreement (TPP) took effect.
Active preparation for integration
Binh Duong Furniture Association (BIFA), as of late 2015, had a total of 150 members. Possibly speaking, BIFA is gradually perfecting its organization structure with plenty of members in and out of the province. Many trade promotion and exchange programs were regularly organized by BIFA over the past time, bringing members good signs in improving production methods and saving materials. BIFA also organized meetings to remove enterprises’ difficulties to promote their production and business; learnt about distribution systems and get access to European market in the furniture and handicraft industries; participated in the Vietbuild expo 2015…
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Production of a furniture enterprise in Thuan An town
In addition, BIFA advised provincial People’s Committee on setting up a compound for furniture industry at Tan Lap I Industrial Park. As of now, there have been 47 enterprises registering to invest in the compound with total area of 270 hectares and the establishment of the compound was approved by the Prime Minister. Many members of the compound have bravely innovated their machines, equipment to approach production knowledge of some countries in the region and seek ways to penetrate into the world market.
BIFA’s products are present in the U.S, EU, Japan and some Middle East countries. But, the local furniture enterprises have faced severe competitiveness when those from China have poured investment capital into Binh Duong. According to leader of a furniture enterprise in Thuan An town, although realizing this, many local furniture enterprises did not anticipate obstacles in production and business when there is participation from Chinese ones.
Helping remove enterprises’ difficulties
Luu Phuoc Loc, Vice-Chairman of BIFA said that taking advantage of strategic economic agreements that Vietnam has signed like the AEC, the TPP, Chinese enterprises have strongly poured investment capital into Binh Duong. They have usually hired Vietnamese people to set up legal entities to be able to enjoy preferential policies. Tens of Chinese enterprises have so far invested in the local furniture industry and the figure is predicted to surge in the soonest time. Many of them have not attached special importance to infrastructure investment, causing environmental pollution…
It is known that over the past time, provincial Department of Natural Resources and Environment carried out inspection tours at province-based furniture enterprises, aiming to minimize bad impacts on the environment.
Whilst, Le Van Trang, Head of provincial Tax Department said that enterprises that work under the law and meet conditions on tax declaration, deduction and refund will receive the refund of added value tax as stipulated.
At the BIFA’s congress for the 2015-2018 tenure just held, Tran Thanh Liem, Vice-Chairman of provincial People’s Committee said that the local functional agencies will soon solve BIFA’s difficulties and attach special importance to rechecking Chinese enterprises’ operation, aiming to ensure healthy competitiveness among enterprises in this industry.
Reported by Phung Hieu-Translated by K.T
