Dong Nai attracts investment in the right direction

​According to the Dong Nai Statistics Department, in the first four months of the year, Dong Nai enterprises exported more than US$8.7 billion, up more than 16.3% and imported more than US$6.3 billion, up more than 2%. An increase in exports and a decrease in imports will help the trade balance in favor of Dong Nai and the province will increase its trade surplus.

Manufacturing machinery components for export at Boss Industry Co., Ltd., Song May Industrial Zone, Trang Bom District.

Increase the search for domestic raw materials

The Covid-19 epidemic, leading to difficulties in purchasing raw materials from abroad due to insufficient supply by factories, increased transportation costs, and extended time. The source of raw materials is not imported on time, affecting the production plan of the factories and delaying the delivery schedule. Therefore, enterprises pay attention to finding domestic suppliers of input materials to reduce costs, transport time and take initiative in production.

Mr. Le Xuan Tan, Sales Manager of Hanh Phuc Wood Co., Ltd. Tam Phuoc Industrial Zone, Bien Hoa City shared: “The epidemic and the conflict between Russia and Ukraine have caused the price of imported wood materials to soar. supply is scarce. Therefore, the company has negotiated with customers to use other types of wood available in the country, so it has reduced the need to import. Sourcing of input materials in the country, enterprises will be more proactive in production.”

Similarly, many enterprises with domestic investment capital and foreign direct investment capital in the province said that they all want to find enterprises in Vietnam that are capable of providing stable and long-term input products for factories. Therefore, businesses that have quality goods at competitive prices will be ordered by many businesses in large quantities.

Mr. Nguyen Van Tam, Managing Director of Vietnam Kaneko Co., Ltd (100% Japanese capital) in Nhon Trach 3 Industrial Zone, Phase 2 said: “The company manufactures valves for the oil filtration systems, ships, boats, airplanes, aerospace and industrial machines need high-quality steel materials to ensure the qualified products. The company prioritizes to buy raw materials in the country, only those materials that cannot be met by the domestic market, the company imports”.

Thanks to attracting investment in the right direction

Since more than 10 years ago, Dong Nai has focused on attracting investment in the industrial sector, in which, priority is given to inviting FDI enterprises into supporting industries, deep processing, increasing added value for products. This is the right direction to help the province become a supplier of input materials for many domestic and foreign enterprises and a number of agricultural products and foods that are processed for export.

Mr. Binu Jacob, General Director of Nestlé Vietnam Co., Ltd. said that Nestlé Vietnam's products manufactured in factories in Dong Nai Province are not only sold to consumers in the domestic market, but also exported to 25 other countries. Nestlé Vietnam connects factories with large domestic material regions to have high-quality “Made in Vietnam” products to expand exports to the world.

Other FDI groups in Dong Nai such as LG, Schaeffler, Meggitt, Hyosung, Kao, Samsung, Kolon, Chrysler, Cargill, Vmep, Hualon, Bosch, etc. are also ready to bring enterprises in Vietnam into the product supply chain for to increase the localization rate of products and increase added value. Thus, goods exported to countries that Vietnam has signed free trade agreements with will enjoy preferential tariffs.

According to Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, Vietnamese textile and garment enterprises all prioritize the selection of domestic raw materials for production and export in order to better control the product chain and meet the increasing requirements of the brands in the world. Over the past 2 years, despite the pandemic, Vietnam's textile and garment industry still has breakthroughs thanks to the close linkages between businesses to form a secure supply chain from cotton, yarn, fabric, and garment.

Dong Nai is a major industrial production center of Vietnam, in the province there are more than 50 manufacturing industries and supporting industries for development. Enterprises in all fields can actively learn to link and become partners to supply input products for each other.

                                                                                               Vi Quan