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Manufacturing and Processing Industries are Key Players in Export

(News Portal – Dong Nai) – Viet Nam is experiencing robust export growth, with the manufacturing and processing industries at the forefront, leading in export value across the entire industrial sector. 

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In the first seven months of the year, Dong Nai's wood industry exported nearly 814 million USD, an increase of 12.6% compared to the same period. 

Export growth is recovering but still faces many challenges. The fact that the United States has not yet recognized Viet Nam's market economy status, along with several other countries tightening import controls, is something export businesses need to consider.  

Leading in Export Value   

In the first seven months of 2024, Viet Nam's exports continued to grow, with the manufacturing and processing industries playing a crucial role, accounting for over USD 192 billion, representing 84.6% of total export turnover and increasing by 15.4% compared to the same period in 2023.

At the regular government press conference in July 2024, Deputy Minister of Industry and Trade, Ms. Phan Thi Thang, noted that this reflects a positive picture of domestic production. Industrial production is recovering strongly compared to 2023 and is on a trajectory of continued positive growth. The manufacturing and processing industries lead the growth of the economy.

Experts highlight that this trend is evident in Viet Nam as the country is attracting investment in industrial production. Manufacturing and processing industries lay the groundwork and foundation for industrial development and modernization of the country. The growth rate of value-added in this sector has been much higher than GDP growth over the past five years.

In Dong Nai, some key manufacturing and processing industries have also seen high export value growth. In July, industrial production continued to grow, and in the recovery trend, businesses received additional new production orders, favorable export markets, and stable domestic product consumption markets. Overall, in the first seven months of the year, 26 out of 27 production sectors saw an increase in production output.

The export turnover in the province reached nearly USD 13.3 billion, an increase of over 8% compared to the same period. Key products that saw substantial growth include wood products, up by 12.6%; textiles over 3%; computers 10.8%; fibers and yarns 5.6%; machinery and equipment 4.6%, among others.

According to Director of the Department of Industry and Trade, Mr. Pham Van Cuong, production and exports are recovering and growing. To support businesses, Dong Nai has organized and registered many businesses to participate in domestic and international trade promotion programs to find markets. Mr. Cuong noted that foreign trade fairs and exhibitions have been genuinely attended by businesses, providing more business opportunities, sales, purchases, and potential foreign market investment partners.

Proactively Address Challenges

Although export growth is high, there are still many uncertainties ahead. Alongside the latest geopolitical developments and global conflicts affecting the global economy, businesses need to adapt to new rules, regulations, and trade barriers.

One issue to be aware of is that the United States has not yet recognized Viet Nam as a market economy. Viet Nam has been recognized by 73 countries as a market economy, but the country to which Vietnam exports the most value, the United States, has not. Without this recognition, goods entering the world's largest market continue to face significant restrictions and barriers. In fact, in the first half of the year, the United States initiated the most trade defense investigations against Vietnamese exports, with 11 cases.

The wood industry, a significant export sector in Dong Nai, is also facing trade barriers. Besides individual company efforts, the Dong Nai Wood Association has organized numerous seminars to disseminate knowledge to businesses. According to Mr. Vo Quang Ha, Vice President of the association and Chairman of Tan Vinh Cuu JSC, the association aims for businesses to gain important information on trade defense and how to handle and respond to protect their interests, thereby enhancing the competitiveness of Vietnamese goods.​

Additionally, businesses need to plan long-term to meet standards and control from importing countries. Notably, the EU market is preparing several laws related to ecological issues. This market will also strictly check product origins and impose carbon emission taxes on goods exported to the EU from other countries.  

Author: Bao Nguyen

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