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FDI enterprises have paid attention to the domestic market

Recently, FDI enterprises have begun to pay more attention to the domestic market. Many enterprises seek to expand domestic consumption, so their revenue has increased quite high.


 

According to the Dong Nai Industrial Zones Authority, in the first five months of this year, the total revenue in the domestic market of FDI enterprises in the Industrial Zones in the province was more than US$3.24 billion increasing of about 15% compared with the same period of the previous year. In May 2021 alone, revenue in the domestic market increased by 25% compared with the previous month.

 

Kyokuto Vietnam Co., Ltd. Based in Nhon Trach 3 Industrial Zone, phase 2, produces electronic components to supply the domestic market and export.

 

*Domestic sales expansion

The Covid-19 pandemic has helped FDI enterprises recalculate their consumption plans in both domestic and export markets. With the domestic market, FDI enterprises have paid attention to find partners to supply the input components and sell output products. Because the products of many enterprises are inputs of other enterprises.

Mr. Tran Tan Phat, Head of Administration and Human Resources Department of SeAH Steel Vina Corporation based in Bien Hoa 2 Industrial Zone said: “Over the past time, in addition to the effective prevention of Covid-19 epidemic, enterprises have also sought to sell in the domestic market and export to ensure output and revenue for the company. The company has nearly 400 workers, so favorable output products will help workers be employed and have stable incomes." Currently, SeAH Steel Vina Corporation has about 20% of products for domestic consumption and 80% for export.

Dong Nai Province has more than 60% of total export turnover belongs to supporting industry products. In Industrial Zones, the supporting industry sector mostly belongs to FDI enterprises from many countries and territories such as: Korea, Japan, Chinese Taipei, China, Europe, etc. Products of the above companies have 60-90% export to more than 170 countries and territories. In which, the main export markets are the United States, Japan, Korea, and Europe. Therefore, the products are of high quality, meeting the competitive requirements of large customers. Therefore, FDI enterprises have the mutual cooperation to sell products to each other which will create great advantages such as reducing imports, increasing trade surplus, limiting the lack of input materials for production, and reducing the cost of transporting products to long destinations in the context of rising freight rates.

 *Connect for sales.

Over the past year, due to the Covid-19 epidemic, trade promotion conferences have been postponed, but businesses still connect with each other through online communications; therefore, the consumption in the domestic market still has a quite high rise. Accordingly, in 2020, Dong Nai's export turnover decreased, but trade surplus still increased.

According to Mr. Le Van Loc, Deputy Director of the Department of Industry and Trade, over the years, local trade promotions have helped many FDI enterprises increase revenue in the domestic market. The expansion of domestic consumption by enterprises is very effective, especially in the difficult situation because of the Covid-19 epidemic. Because for many years, the input products of this enterprise are the outputs of other enterprises, but due to the poor connectivity, it takes a long time for enterprises to find export partners. Therefore, the province will continue to carry out on-site trade promotions to help businesses meet, exchange, sign business contracts, and supply products for each other.

Park Hyun Pae, Chairman of the Korean Business Association in Dong Nai said: "Most Korean enterprises investing in Dong Nai would like to find partners to supply domestic raw materials to reduce imports and also want to find customers for selling products in Vietnam. There have been many Korean enterprises investing in Dong Nai Province in the field of supporting industries for the footwear industry, apparel, machinery and equipment, and electronics. If businesses in the same field can connect with each other, it will be very beneficial for both sides."

According to the associations of FDI enterprises in Dong Nai, enterprises wishing to expand the purchase and sale of goods in the domestic market can contact the associations for support in connecting with suitable enterprises in the same field. This is an opportunity for FDI enterprises as well as enterprises with domestic investment capital to expand their market share in the domestic market.

Vi Quan​


 
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