The northern midland province of Vinh Phuc has maintained its export growth thanks to businesses’ efforts to access new markets and optimise opportunities from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Illustrative image (Source: sokhcn.vinhphuc.gov.vn) 

In the first nine months of this year, the export value of brake manufacturer Nissin Brake Vietnam Co., Ltd. in Quat Luu commune, Binh Xuan district increased more than 25 percent year-on-year.

This year, along with traditional partners like Nissin Kogyo Japan, Nissin Thailand and PT Chemco Indonesia, the Japanese-invested firm has expanded its reach to such markets as Malaysia, Brazil, the Philippines, the US and India.

As of the end of September, it shipped over 622 tonnes of products abroad, earning nearly 29 million USD, up more than 25 percent against the corresponding time last year.

Once Nissin Brake Vietnam enters CPTPP member economies, the company will benefit from tax incentives, thus improving its competitiveness.

Vin Phuc province is now home to more than 200 businesses whose products are exported to more than 40 countries and territories, mainly the US, the EU nations, Russia, ASEAN, Japan, China, Taiwan (China) and the Republic of Korea (RoK).

In 2018, the locality’s total export revenue exceeded 2.2 billion USD, with major exports like motorbikes and motorbike components, electronic components, auto spare parts, tea, garments-textiles and footwear.

Since the beginning of this year, export activities have also shown rosy signs. The export value of foreign direct investment (FDI) firms was over 2.6 billion USD, a year-on-year rise of 9 percent. Meanwhile, that of domestic enterprises reached nearly 40 billion VND (1.73 million USD), up 47 percent.

Strong growth was recorded in auto and motorbike manufacturing and assembling, and support industries.

Experts said the CPTPP has opened up integration and development opportunities for exporters, while facilitating product consumption in the domestic market.

To help businesses located in the province utilise the agreement, Vinh Phuc has stepped up administrative reform and applied scientific and technological advances in production and business.

Besides, it has assisted enterprises in improving competitiveness, implementing trade promotion activities, seeking partners, expanding the market and building brands.

Last April, the provincial People’s Committee issued a plan on the implementation of the CPTPP in the locality, under which departments and People’s Committees of Vinh Yen city and districts have been asked to intensify the popularisation of the deal.

Vinh Phuc has also reviewed local legal regulations that have not matched the agreement for timely adjustments and stepped up administrative reform, especially procedures regarding investment, export-import and tax.

According to the VinhPhuc Industrial Park Management Board, in the first nine months of 2019, local industrial parks drew 53 new FDI projects. Together with capital poured into 38 ongoing projects, so far this year, the parks have lured 612.35 million USD, reaching 219 percent of the yearly target.

At the same time, the parks have wooed over 2.66 trillion VND for eight new and four ongoing domestic projects, equivalent to 190 percent of the goal for the whole year.

Binh Xuyen district is the leading locality in the province for investment attraction. The district is home to seven industrial parks with a total area of nearly 1,900 hectares, namely Binh Xuyen, Binh Xuyen II, Ba Thien, Ba Thien II, Thang Long Vinh Phuc, Son Loi and Nam Binh Xuyen. The parks accommodate about 200 projects, mostly in garments and textiles, electronic accessories, automobile and motorbike assembly, brick and steel production. The projects employ more than 35,000 labourers.

In the Thang Long Industrial Park alone, 11 Japanese firms are operating with a combined capital of 200 million USD.

Thanks to the province’s endeavors to complete infrastructure in industrial parks and a transport system connecting them, as well as efforts to improve the business environment and reform administrative procedures, Vinh Phuc has become more popular among foreign investors.