Economic development is expected in the 2nd Quarter of 2022

​According to the Provincial People's Committee, in the 2022 plan, Dong Nai's economic growth is between 6.5-7% compared to 2021, the GRDP per capita is VND126.3 million per person, the export turnover is about US$22.8 – US$23 billion, increased by 8-8.5% and mobilized social capital over VND100 trillion.

Garment production for export at Dong Nai Garment Corporation Joint Stock Company.

Overcoming the difficulties

Dong Nai is one of the 5 most economically developed provinces and cities in the country, so it is greatly affected by the general situation of the world. In the first quarter of 2022, although the province's economic development and recovery speed is quite good, businesses still face a series of difficulties. Specifically, the Covid-19 epidemic has led to a labour shortage for factories that are in need of expansion to increase capacity. The price of input materials and logistics costs escalated, causing the production costs of enterprises to be pushed up, reducing competitiveness.

Mr. Wu Ming Ying, President of The Council of Taiwanese Chamber of Commerce in Dong Nai, General Director of Boss Industry Company Limited, Song May Industrial Zone, Trang Bom District commented: “In the first quarter of 2022, the FDI enterprises have to face many difficulties due to the general situation of the world. In order to maintain stable production, enterprises have to restructure, cut unimportant stages, and boost production, export and consumption in the domestic market. Enterprises hope that Russia-Ukraine will negotiate successfully, end the war soon, gasoline prices would decrease, leading to lower input materials and lower logistics costs. Thus, the economic recovery of the world, Vietnam and Dong Nai will be better.

According to Mr. Ho Van Ha, Director of the Department of Planning and Investment, through the survey, in the first quarter of 2022, nearly 53% of enterprises in the province rated their production and business situation better than at the end of 2021. At the same time, more than 64% of enterprises assessed that the production and export situation in the second quarter of 2022 would be better than that of the first quarter of 2022, because so far, many enterprises have received contracts to export goods until the end of the year.

Flexibility to adapt

It is forecasted that in the coming time, the world situation will continue to fluctuate unpredictably, affecting the implementation of the goals of both disease control, recovery, and socio-economic development. Faced with that situation, Dong Nai has come up with flexible solutions to adapt to the general situation in order to continue effective economic recovery and complete the 2022 plan.

Ms. Nguyen Thi Hoang, Vice Chairperson of the Provincial People's Committee said: "Dong Nai has actively implemented safe and flexible adaptation solutions, gradually restored the economy, promoted and developed supply chain operations. application in production and business. At the same time, the province has strengthened solutions to support businesses in terms of capital and labour supply to fulfil the dual goals of preventing and fighting the epidemic, while recovering, developing the economy, and ensuring social security.

In addition, Dong Nai implements trade promotion and investment promotion activities to expand the consumption market of industrial and agricultural products, and to attract investment in areas that can create the big added value. Dong Nai has the advantage of technical infrastructure, so many businesses want to invest in fields such as industry, trade and services, real estate, tourism, and ports. It is estimated that in the last 6 months of the year, the Provincial People's Committee will offer bidding and auction many large projects. Currently, many enterprises have registered to bid and auction. Thus, attracting investment, mobilizing capital from the whole society, and collecting the province's budget is likely to have a high growth rate in the last months of the year.

                                                                                                    Vi Quan​