Dong Nai economy in the first 6 months of the year: Promising progresses

​Along with that, domestic companies have been getting better at utilizing their internal resources, reaching out to the world market with promising export orders. Many companies are trying to expand their scope of production and business and seek more export markets.

 

 

According to the report of the People’s Committee of the Province, Dong Nai's socio-economic situation in the first half of this year continued to develop in a stable and positive manner. Specifically, the gross domestic product of the Province (GRDP) in the first 6 months increased by 8.02% (the same period in 2018 had an increase of 7.5%) which was higher than the national average by nearly 1.3%. In that overall growth, the industry - construction sector had the highest increase with 9.09%; the service sector rose 7.6%; agriculture - forestry - fishery sector went up by 3.22%.

 Producing support layer for mattress at one of the affiliated companies of The Linh Single Member Co., Ltd.

 

According to Director of Department of Planning and Investment of Ho Chi Minh City, the most significant achievement in the first 6 months was still foreign direct investment (FDI) attraction with more than 1 billion USD (from both newly registered and capital increase combined), which marked an increase of 8% over the same period in 2018, while domestic investment attraction reached nearly 7,400 billion VND, an rise of 7%. There were 1,728  newly established companies, up nearly 5% yet registered capital increased by 40%. This positive result was due to the Province having implemented well the measures to support companies, actively reforming administrative procedures, improving the investment environment.

 

However, besides the advantages, the US-China trade war has affected the export situation of Dong Nai. In the past 6 months, the Province's export turnover reached over 9.4 billion USD, a 6.1% increase compared to the same period in 2018. Although the Province still managed to maintain the export surplus, the growth rate of export turnover in the first 6 months of the year was slowed down (in previous years, the growth rate of export turnover in the first 6 months was always over 10%).

 

Director of the Department of Industry and Trade Mr.Duong Minh Dung also said that the US-China trade war will continue to affect export in Dong Nai in the last half of the year. However, the Vietnam-EU Free Trade Agreement (EVFTA), which has just been signed, will be an opportunity for companies in Dong Nai to increase exports to the 28 EU countries in the upcoming future.

 

 

Despite the difficult time, many companies still manage to utilize their internal resources, some domestic companies in the Province are increasingly expanding their production scope and seeking more export orders.

 

Tuonglai Rubber Plastic Manufacturing Trading Co., Ltd based in Long Thanh District is a typical case. Tuong Lai Co., Ltd is an enterprise specializing in manufacturing plastic and rubber accessories and components for the assembly of motorcycles, cars, molds and other specialized goods.

 

Director of Tuonglai Rubber Plastic Manufacturing Trading Co., Ltd mr. Truong Quoc Cuong said that currently, every year, his company produces 2 million products and components. Nearly 90% of them are consumed by domestic market with its partners which are FDI companies in industrial zones and some manufacturers and assemblers of motorcycles and cars, the remaining of over 10% are exported to Japan.

 

According to Mr. Cuong, innovating and improving the quality of products are "vital" factors for his company, so the company has made big investments to import modern machines. Just from the beginning of the year until now, the company has invested 20 billion VND to upgrade machinery and equipment to improve product quality. “Currently our company is participating in the global supply chain funded by the World Bank program. It is expected that after 1 year and a half to 2 years we can meet the requirements of the program and become one of 25 Vietnamese professional suppliers for large corporations all over the world”, Mr. Cuong said.

 

Similarly, in export wood production, currently Hoai Phu Long Co., Ltd (Vinh Cuu District) can export 40 containers to the markets in other countries. In which, 50% of the company’s products are exported directly to Korea, and the remaining 50% are exported to Japan, the US and Taiwan ... Currently, Hoai Phu Long Co., Ltd has 3 factories producing wood products in Trang Bom and Ho Nai. However, due to the increasing demand for wood products from partners around the world, the company is continuing to expand the scale of its factories. "We are finishing and completing the necessary documents and procedures in order to expand our factories by about 4,000m2. At the present, Hoai Phu Long furniture has made a brand of itself and seize a position with partners in the world. Our company no longer has to search for orders but more and more partners are coming to us to order export goods. The export market is favorable but the most difficult challenge that our company needs to solve is the shortage of skilled labor and the difficulty in recruiting them,” said the Director of Hoai Phu Long Co., Ltd Mr. Ta Ngoc Hoai Company Limited.