Some export products exceed US$1 billion

Export turnover in the first 6 months of 2021 of the three groups of goods above is US$4.57 billion, accounting for about 39.5% of the province's total export turnover.

Manufacturing machinery components for export at Kien Dat Industry Co., Ltd in Agtex Industrial Zone - Long Binh (Bien Hoa City)

* Received orders until the end of the year

In the first 6 months of this year, Dong Nai's footwear export turnover is more than US$2.35 billion, up US$210 million over the same period in 2020 and US$310 million higher than in 2019. Similarly, machinery and equipment and tools and spare parts in the first 6 months of 2021 exported nearly US$1.16 billion, an increase of US$292 million over the same period in 2020, an increase of US$351 million compared to 2019. Wood products in the first two quarters of this year were exported valued nearly US$1.1 billion, an increase of US$439 million over the same period in 2020 and US$387 million in 2019.

Mr. Nguyen Thanh Phuong, Head of External Relations Department of Chang Shin Vietnam Co., Ltd in Thanh Phu Industrial Zone (Vinh Cuu District) said: “The situation of the Covid-19 epidemic is complicated, but the company still ensures production and exporting shoes to other countries. Orders this year have higher value than last year, so the company increases capacity to meet customer demand. The company has received orders until early 2022 so far.”

Since the beginning of the year, many orders for footwear, wood products, machinery and equipment and spare parts, textiles, textile fibers, computers, electronics and components, etc. have been moved to Vietnam. Because at present, Vietnam is still one of the countries that control the Covid-19 pandemic better than many surrounding countries. Therefore, most factories still have stable production, ensuring orders are delivered on time.

Currently, the United States, Japan, China, Europe, and South Korea are the main consumers of Dong Nai's goods.

*Focus on epidemic prevention to ensure production

Currently, many companies have signed orders until the end of the year or early next year, but businesses are still worried about potential risks. Because the fourth wave of Covid-19 epidemic, which is spreading rapidly outside the community, has appeared in nearly 58 provinces and cities across the country and many areas have to be blocked to prevent the epidemic.

Accordingly, it is difficult for companies to move and recruit more workers to expand and restore production. If there is not enough labor source, it will be difficult for enterprises to meet the signed large orders. The disease is unpredictable, the risk of outbreaks in companies with a large number of employees is very high. In addition, the price of input materials continues to increase, 40-80% higher than at the end of 2020. Lack of containers for exporting the goods, transportation costs increase by 20-30%...

Mr. Tran Tan Phat, Head of Administration and Human Resources Department of SeAH Vietnam Steel Co., Ltd in Bien Hoa 2 Industrial Zone (Bien Hoa City) emphasized: “Currently, businesses are not worried about the lack of orders but worried about the outbreak of the epidemic which could spread into the Industrial Zone. Although since the beginning of the year, export turnover has increased, the profits of enterprises have shrunk due to the cost of epidemic prevention, input materials, and increased transportation, which has pushed up product prices. There are orders signed before the price of raw materials escalates, so failing to negotiate with partners to increase the selling price will face losses.

Many businesses believe that, if the epidemic is controlled and the situation gets better, businesses will be more confident to expand production to meet the orders of domestic and foreign partners.

Chairman of the Provincial People's Committee Cao Tien Dung said: "The province will continue to create favorable conditions for businesses to maintain production and business activities. At the same time, the province will focus on the prevention of the Covid-19 epidemic, trying to control it so that it does not spread to Industrial Zones, helping businesses feel more confident in their production.