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Additional solutions to support import-export businesses

As per the forecast by the Industry and Trade department, from now until the end of the year, the situation of production and export will still suffer order shortage due to the slow and uneven recovery of the world economy in different countries. Consumers’ demands have not shown any signs of rapid recovery. Therefore, it is expected that the results of the entire year of 2023 for industrial production and export targets will be difficult to achieve.

(CTT-Dong Nai) - Although the import-export turnover of goods always has a slight growth over the months, it is still at its lowest since 2021 with the total import-export turnover in 7 months reaching 21,4 billion USD, down by 19% over the same period last year.

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Garments manufacturers are facing challenges as number of orders plummet

​Dong Nai is trying to revive the import-export market with various solutions to support enterprises to recover and develop their productions and businesses; stimulate market demand for products... in order to raise the total import-export turnover to reach the targets set by the province in 2023 (export turnover increased by 8%, import turnover increased by 5%).
Affected by the current global economic situation
The world's economic situation in the first months of 2023 is still recovered slowly. Many countries have tightened their monetary policies, purchasing power in major markets such as the US, Europe, Japan, Korea... all decreased, causing the amount of orders to decrease; exporting enterprises suffer the lack of orders, especially enterprises producing wooden products, leather shoes, garments...
With the above influence, the industrial production index in the first 7 months of 2023 of Dong Nai only increased by over 3% over the same period last year (the target of 2023 was to increase by 7.5%-8%); import-export turnover decreased by over 19% (an increase from 5-8% was expected). Enterprises are still facing many difficulties. Mrs. Trinh Kim Thanh, Deputy Director of Kien Phuc Trading and Service Production Company Limited (Kien Phuc Company, Trang Bom district) said that her company specializes in manufacturing household furniture for the Japanese market, Korea and Hong Kong. From the beginning of the year until now, due to the influence of the market, Kien Phuc company's number of order has decreased by about 70%. According to Mrs. Thanh, the reduction of orders means that the enterprise's finished products and raw materials are left in stock, working hours of workers got cut down, and it is more difficult to have the money to pay interest on monthly bank loans.

The decline in the import-export market has led to many consequences such as, many workers lost their jobs because enterprises did not have production orders, businesses suspended their operations, shopping transactions and personal consumption were also reduced which heavily impact the state budget revenue as production and business activities decreased. Mr. Nguyen Phuc Tho, Deputy Director of Dong Nai Department of Customs, said that the province's state budget revenue from the import and export in the first 6 months of 2033 reached over 8.5 trillion VND, down nearly VND 4 trillion, equivalent to over 31% compared to the previous year. According to Mr. Nguyen Phuc Tho, through the assessment of state budget revenue by month, from the beginning of the year until now, only March had the highest revenue (over 1.7 thousand billion VND) but it also did not reach the average targeted monthly revenue (on average, each month must reach over VND 1.9 trillion). On average, in the first 6 months of this year, the progress of state budget collection each month only reached nearly 80% of the target. Therefore, to complete the task of collecting state budget in the last 6 months of the year in import and export is extremely difficult.

Together with enterprises through tough times

Since the third quarter of 2022, the province has identified that the production – business situation of enterprises in the province has begun to have difficulties, the import and export market has shown signs of slowing down, especially in the leather and footwear industries. In order to remove difficulties and obstacles and accompany businesses to overcome the current period, provincial leaders had soon directed departments and offices to promptly evaluate and assess the situation and provide specific solutions to accompany and support businesses and their employees.

According to Vice Chairwoman Nguyen Thi Hoang of the Provincial People's Committee, previously, Dong Nai province's government body has actively evaluated the situation and firmly implemented the Government's instructions on economic recovery; focus on disbursing public investment capital, promptly removing difficulties and obstacles for enterprises to operate effectively. Specifically, promptly apply supportive policies on taxes, access to capital...; promote the improvement of the business environment, support enterprises to promote products, encourage joint ventures and cooperation in order to expand export markets and product consumption.

Continuing to accompany businesses to overcome difficulties and revive the local import-export market, the Vice Chairwoman said that the province is still directing departments and offices to coordinate with the Trade Promotion Department and commercial counselors to study the demands in foreign markets and   provide businesses with information through conferences and seminars... At the same time, promote propagating about multilateral and bilateral free trade agreements that Vietnam has signed and participated in order to raise the enterprises' awareness, allowing them to build appropriate business and production plans, taking full advantage of the pros brought by the trade agreements from the beginning of the year to the present. Along with promoting export markets, the province also strengthens domestic trade promotion activities, supports enterprises to participate in domestic and foreign trade promotion fairs. ​​

Author: Phan Anh

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