Binh Duong port, situated in the Southern key economic zone

Bright spot in the economic picture

According to the Department of Industry and Trade of Binh Duong province, exports were a bright spot in the province’s economic picture in the first five months of 2024 when the export value reached nearly US$13.8 billion, up 13.9% year on year. Of the sum, the domestic economic sector accounted for nearly US$2.6 billion, up 14.9%, and the foreign-invested business sector contributed nearly US$11.2 billion, up 13.6%.

In the first months of 2024, export shipments from Binh Duong province advanced, with key growing products including textiles and garments, leather and footwear and wooden furniture. In particular, this result showed that the capacity of local businesses improved significantly thanks to adapting and grasping market opportunities. This strengthened confidence in full-year growth.

Vice Chairman of the Binh Duong Wood Processors Association Luu Phuoc Loc said that the wood industry is always one of the major exports of Binh Duong province. With internal strengths and effective business support policies, Vietnam's woodwork exports are very successful in the international market. Currently, businesses are trying to find more orders by organizing domestic and overseas fairs and exhibitions and advancing into new markets in the Middle East.

According to Dong Nai Statistics Office, in the first five months of 2024, Dak Nong province-based businesses exported nearly US$9.3 billion of merchandise and imported more than US$6.45 billion, resulting in a trade surplus of over US$2.8 billion. In its export structure, more than 60% of export value came from industrial supporting industries such as electronics, textile and garment, leather and footwear, machinery components and equipment.

The province’s products are currently exported to more than 170 countries and territories. Its main export markets are the United States, Japan, China, South Korea and Europe. According to exporters, their export markets have shown signs of improvement and more orders are likely to arrive. If there are no major changes in world politics and trade in the third and fourth quarters of 2024, its exports will continue to grow strongly. In 2024, Dong Nai may enjoy a trade surplus of more than US$6.8 billion.

Chairman of the Ho Chi Minh City Business Association Nguyen Ngoc Hoa said that some businesses in Ho Chi Minh City have won orders for full production till the third quarter of 2024 but they are facing pressure from falling unit prices and high technical barriers. Nonetheless, they have still strived not to lose orders, accept reduced earnings and seek solutions to reduce costs and maintain jobs for workers.

From the efforts of the business community plus the city’s export support policies, Ho Chi Minh City has led import and export turnover for years. In 2023, the city’s import and export value totaled US$97.8 billion, of which exports accounted for US$42.5 billion and imports valued US$55.3 billion. In the first five months of 2024, the city’s import and export value continued to recover and grow after adapting to major fluctuations in the world market. Most exports by product and market increased from a year earlier, putting high expectations of growth on the last months of 2024.

Authorities have actively introduced policies to support local companies in transitioning to green manufacturing and adopting new technologies

Enhanced support

Nguyen Thanh Toan, Director of the Binh Duong Department of Industry and Trade, said, to facilitate and support businesses to promote exports, in the last months of 2024, the department will continue to work closely with the Ministry of Industry and Trade and overseas trade counselors to maintain its online monthly trade promotion with the Vietnam Trade Office system abroad to provide useful information about merchandise supply and demand in export markets for local businesses and trade associations.

In addition, Binh Duong province has effectively and promptly implemented free trade agreements to which Vietnam is signatory, helping local companies actively build brands, improve quality, meet technical standards, and seek input materials from partner markets to enjoy preferential tariffs. At the same time, the province has coordinated with relevant agencies to support businesses in certifying the origin of goods and trade defense for exported goods; strengthened investment promotion and trade promotion, reformed administrative procedures to reduce the settlement time and lower costs for businesses, and supported their importing and exporting activities, especially assurance for quick customs clearance of goods.

Recently, Ho Chi Minh City has actively introduced many mechanisms and policies to support local companies in converting production models and further applying new know-how to enhance green manufacturing and green export. This move has helped raise the competitiveness and position of Vietnamese exports in the international arena.

Vice Chairman of the HCM City People's Committee Nguyen Van Dung said that HCM City has directed relevant agencies to learn about actual difficulties faced by local businesses and their capacity to meet export standards in global merchandise supply chains to advise and propose solutions to the municipal government to support local companies to expand export markets and deeply participate in global merchandise supply chains.

At the same time, relevant bodies were told to organize many export promotion activities in key markets and new, potential markets, assist domestic firms to effectively grasp import tariff policies from free trade agreements, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam - EU Free Trade Agreement (EVFTA) to expand export markets.

According to the HCM City Department of Industry and Trade, the city’s positive export signals in early 2024 will be a good foundation to make breakthrough growth and achieve its goals. 2024 is a year of breakthrough to boost industrial manufacturing and trade development and promote import and export activities in a bid to complete its goals in the 5-year socioeconomic development plan (2021 - 2025). Therefore, the city targeted industrial growth at 6.5% and export growth at 10%.

To achieve its goals, in addition to business support solutions, HCM City has stimulated businesses to seek more partners and boost exports to countries outside of China and the United States. Diversifying export markets will help the city’s exporters minimize seasonality effects and have stable growth.