With the determination to overcome challenges, initiatives and innovations in operation, along with the support of governmental levels, branches, import and export activities of enterprises gained some good results initiatives during the epidemic period.
Production activities at Dong Hung Shoes Company (Di An City).
Export increases again
In July, export turnover of the province was estimated at $2.6 billion, up 18.2% over the previous month, and increased by 17% year-on-year (last year 13.3%). Over seven months, the export turnover was estimated at $14.2 billion, up 0.6% year-on-year. A number of major export sectors continued to grow positive. This is considered as a miracle in the epidemic period. Timber industry emerged as a top flag in overcoming difficulties. In July, export turnover of wood products was estimated at $362.7 million, up 3.5% over the previous month. Over seven months, export turnover of this sector was estimated at $2,201 million, up 16.4% year-on-year, accounting for 11.8% total export turnover of the province.
There were many reasons for this growth. Firstly, the Covid-19 made many people stay at home more, thus the demand for furniture shopping increased. In addition, China and some other countries with strengths in timber industry were strongly influenced by the pandemic, which caused production interruption. Meanwhile, Binh Duong timber industry was virtually not interrupted in production, and no factories were blockaded or had to cease operation. Therefore, the timber industry has not only maintained its export capacity but also filled market demands where some countries left.
For the textile and garment industry, despite of difficulties, the transformation of goods serving the pandemic, which are medical masks and protective suits, has helped secure their operation. In July, export turnover of this sector was estimated at $297.8 million, up 8.5% year-on-year. Over seven months, export turnover was estimated at $1593.9 million, up 1.4% year-on-year, accounting for 10,9% total export turnover of the province. Similarly, the leather shoe industry, after order cuts, has started looking better, when export turnover in July was estimated at $254.8 million, up 6.1% compared to June.
Until the end of this year, enterprises expect the pandemic situation in their export markets to be well controlled. In addition, enterprises also hope that the effective implementation of free trade agreements would attract more export orders from member countries. Especially, the timber industry is predicted to reach a strong growth in last months of the year.
Turn the way to adapt
Over the years, the value of exported furniture products of Lam Viet Company (Tan Uyen Town) has reached over 45 million per year, their main export market are the UK and USA, accounting for 85% of export value. As the Covid-19 broke out and created negative impacts on global trade and economy, Lam Viet Company also fell into a difficult situation, when its profits declined, sluggish production, tight funds, and 50% of the employees had to leave their jobs and reduce working time. But the company endeavored to study the market to find opportunities for growing steadily. Reports on the US market showed that people in this country had a tendency to stay home more this year amidst the epidemic outbreak. And the demand for kitchen furniture is increasing to serve living activities of the American people.
According to Nguyen Liem, general director of Lam Viet Company, US retailers also announced that order numbers of wood kitchen furniture, kitchen cabinets, paints and accessories related to kitchen, had been growing. Among these, Flatfast's kitchen cabinet has a major market demand in the US. The country imports over US $4 billion/year for this product. To capture this market trend, Lam Viet Company invested in automation production lines, construction of modern factories, construction of accommodation for workers to meet strict requirements of labor standards of the UK and US markets. The company's export situation is more stable at the present.
At Thai Binh Investment JSC (Thuan An City), from the middle of June, orders have steadily returned. To overcome difficulties, the company receives middle-class orders instead of only turning towards high-level orders. Also with an active transformation, Chi Hung leather shoes company (Tan Uyen Town) announced a happy news to their employees, from September, the company will have orders back, settling jobs for 4,000 employees.
According to leaders of provincial Department of Industry and Trade, the epidemic situation in the coming time would still be unpredictable and complicated. Businesses need to have plans for development in parallel with the epidemic prevention at their organization and in community.
Reported by Tieu My - Translated by Ngoc Huynh
