As forecasted, in 2017 exports will face more difficulties ever due to the fierce competition from other countries in the region. For the first four months of this year, Dong Nai's export turnover has remarkably reached nearly US $ 5.3 billion, up 12.8% over the same period in 2016.
According to the Department of Industry and Trade, the main export items of Dong Nai inlcuding footwear, textiles, textile fibers and wood products have witnessed high growth. With large markets, including the United States, Japan, South Korea, France, and England ... Dong Nai still maintains high export turnover; more specifically the province received many export orders from Japan and Korea, which increased from 50% to 200%.
Clothing manufacturing at Dong Tien Joint Stock company (Bien Hoa city)
* Exports surplus on a rise
Although the world economic situation in the first months of this year is not favorable compared to that of 2016, Dong Nai's exports still maintain high growth rate compared to other provinces and cities in the country. Especially for the first 4 months of 2017, the province has had export surplus reaching nearly 420 million USD. Enterprises tend to continue to find domestic resources to reduce imports. Major manufacturing industries, such as footwear, textiles, wood products, etc. prioritize to find domestic materials for production. Therefore, the supportive companies that provide quality products at reasonable and competitive prices can connect supply to other businesses.
Mr. Nguyen Van Hoang, Deputy General Director of Dong Tien Joint Stock Company (Bien Hoa City), said: "Since 2016, textile and garment export to big markets has been facing fierce competition with the products from China, India and Bangladesh, but thanks to the prestige and good quality, the company still have and receive more large orders. For the first four months of the year, the company's garment exports increased by over 9%." Dong Tien Joint Stock Company also receives orders by the end of 2017. The company is building another garment factory, which is expected to be completed and put into operation by the end of this year and create jobs for about 3,000 workers. Many enterprises producing wood products of Dong Nai actively find and expand export markets to other countries; therefore, turnover has increased compared to that of the same period last year. These companies also fully exploit the markets with which Vietnam have signed FTA, such as South Korea, Japan, ... Dong Nai has gained high export surplus from lumber and wood products.
Mr. Nguyen Van Quy, Director of Ho Nai Co., Ltd (Bien Hoa City), Vice Chairman of Dong Nai Wood and Handicrafts Association, said: "for the first months of the year, export of wood products to the US and European markets are facing a lot of difficulties as cost of input materials increases while product prices remains stable. In addition, there are also fierce competition with the goods of some countries in the region, some businesses have reduced orders. However, reputable companies are still receiving orders. "
* Maintaining orders by reputation
Many companies confirmed the export market in 2017 is not as favorable as in previous years. However, businesses still maintain high growth rate in the first months of the year by constantly ensuring two important factors: maintaining prestige and quality. In addition, Dong Nai enterprises continuously improve management and production to reduce production costs and increase competitiveness.
Mr Nguyen Minh Quang, Chairman of Trade Union of Pouchen Vietnam Co., Ltd. (Bien Hoa City), said: "In the first months of this year, Nike's outsourced orders in Vietnam dropped sharply because the company had to share orders with new factories in other countries where the labor cost is cheaper than that in Vietnam. However, thanks to the prestige and the quality of goods, Pouchen Group in Vietnam has received many large orders from other famous shoe companies instead.
Forecasting the market in 2017 is not easy, so early this year, many enterprises of Dong Nai has been constantly seeking new partners to expand exports. South Korea's exports increased by nearly 88% over the same period last year, Japan up nearly 13%, France up more than 9% and the United States up nearly 8%.
Mr Duong Minh Dung, Director of the Department of Industry and Trade, emphasized: "Enterprises still see an increase in their export turnover thanks to the prestigious production and actively finding more customers in the preferential markets". Mr. Dung further shared, this year the province will continue to support businesses organize trade promotion in and outside the country to have the opportunity to find more customers and new orders. The province will connect domestic supporting enterprises with manufacturing enterprises so that they can supply raw materials and auxiliary materials to reduce imports and easily enjoy tax incentives when exporting to markets with which Vietnam have signed FTAs, such as: Korea, Japan, Chile, ASEAN ...
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