In 2020, Binh Duong province sets the target of export turnover increase by 15% compared to 2019. However, the complicated development of the Covid-19 pandemic is affecting directly import and export activities, making it difficult to enterprises, especially textile, footwear and electronics companies... in the stage of importing raw materials, spare parts and components for export production. In order to solve difficulties for production, and at the same time to meet the export and import turnover targets in 2020, Provincial People's Committee promulgated an action plan to remove difficulties for production and business, secure social security in an effort to cope with Covid-19.
Amid the epidemic, customs sector makes effort to assist businesses in clearing import and export goods.
Import-export is facing difficulties
Currently, many businesses in Binh Duong are negatively affected by the Covid-19 pandemic, in which import and export of textile, footwear, mechanical and electronic products are most affected. A representative of Sanaky Company said that due to the effects of the Covid-19, for nearly a month, enterprises have not been able to import raw materials yet, they can only use available materials in warehouse until the end of March. The company imports over 70% raw materials and exports to China about 20%. Currently the company is in stagnation period, if they still cannot import materials, the company will have to lay off their workers in the near future. The estimated Q1 revenue of the company decreased by 30% compared to target.
According to Bui Minh Tri, Head of Management Board of provincial industrial parks, the pandemic situation is spreading in Korea, Japan, the US and European countries... directly affecting these major export markets. In addition, due to the temporary suspension of airlines, the export situation is facing many difficulties. The negative impact of the epidemic on enterprises has affected the overall export and import results of the province. Over the first quarter of 2020, import-export turnover continued to grow but was lower than the same period last year. Namely, the export turnover was estimated at $5.8 billion, up 3.6%; import turnover was estimated at $4.2 billion, up 4.3% (Q1-2019 up 7.9%); maintained a trade surplus of $1.6 billion.
According to the data of Binh Duong Customs Department, the number of enterprises doing import-export procedures at the department increased by 6.88%, import-export turnover increased by 10.51% year-on-year. Nguyen Phuoc Viet Dung, Director of Binh Duong Customs Department, said that the province had about 110 import-export enterprises affected by the Covid-19, leading to a decrease in import-export turnover. It is predicted that in the coming time, import-export activities of some enterprises using raw materials or imported from countries affected by the Covid-19 would still encounter many difficulties. Some businesses currently have no signs of negative impacts but in the future it is likely to change. Accordingly, some import and export items would decrease. In particular, the sharpest decline happened in electronics, refrigeration, home appliances (mostly imported from China), hot rolled iron and steel, rolled steel, steel sheets and stainless steel (due to difficulties in consumption) ...
To find directions for businesses
In order to solve difficulties for business, and at the same time to meet the export and import turnover targets in 2020, Provincial People's Committee promulgated an action plan to remove difficulties for production and business, secure social security in an effort to cope with Covid-19. In which focuses on 7 specific goals: Remove difficulties and create favorable conditions for accessing funds, credit, taxes, commerce and electronic payment; review and cut administrative procedures, costs for businesses; create favorable conditions for production, business, stimulate import and export; urgently recover and develop tourism industry; accelerate implementation, disburse investment capital and improve business environment; focus on handling labor problems; enhance information and communication ...
Accordingly, the province assigned relevant departments and agencies to organize training programs for enterprises on foreign market information and free trade agreements; accelerate administrative reform and application of information technology in all stages of tax administration; granting certificates of origin of preferential goods to enterprises in industrial parks through electronic systems of grades 3 and 4 under the national OSS mechanism... Mr. Dung said that to overcome the impact of Covid-19, leaders of Binh Duong Customs Department instructed sub-departments to ascertain the import-export situation of enterprises to have a support plan. In particular, the priority is given to enterprises with large revenues (accounting for 80% revenue of each customs branch) to immediately solve difficulties and timely support to secure revenues in 2020.
Nguyen Thanh Toan, Director of provincial Department of Industry and Trade, also said that in order to solve difficulties for businesses, the Department continued to collaborate with relevant agencies to assess the situation, the demand for input materials, and propose solutions to diversify and ensure sufficient supply for production activities in the province; To forecast the demand of domestic and international markets, take measures to ensure raw materials for production and business, and plan for production, distribution, transport and supply of goods to meet consumption demand, strengthen the domestic market, support to remove difficulties for retail activities.
Reported by Ngoc Thanh - Translated by Ngoc Huynh
