FDI Enterprises in the Industrial Zones try to expand the goods consumption market

Manufacturing the supporting industry products at Kien Dat Industry Co., Ltd in Agtex-Long Binh Industrial Zone (Bien Hoa City)​​​​​​​​​​​​​​​​​​​​​​​​​​​

* Revenue in domestic market increased

Dong Nai is place of many FDI enterprises producing the supporting industrial products for Vietnam's key manufacturing industries such as footwear, textiles, machinery and equipments, computers, electronic components, and steel products. The Covid-19 pandemic enterprises have affected the raw materials supply for many companies in Vietnam. Therefore, many enterprieses have sought the domestic material. FDI enterprises in Dong Nai have taken advantage of the above demands to expand domestic consumption.

Therefore, in July 2021, goods of FDI enterprises in industrial zones domestically consumed nearly 566 USD million, up more than 22% (equivalent to USD 103 million) over the same period last year. Accordingly, in the first seven months of 2021, FDI enterprises consumed nearly USD 4.4 billion in the domestic market, an increase of over 17% over the same period in 2020. Many enterprises in the province have signed supply contracts to companies inside and outside the province helping Dong Nai Province maintain its trade surplus, while the whole country had a trade deficit of more than USD 2.7 billion. At the same time, the province's trade surplus has continuously increased over the years, even though the epidemic has adversely affected industrial production.

Mr. Kim Byunggi, General Director of Hansol Electronics Vietnam Hochiminhcity Company Limited in Amata Industrial Zone (Bien Hoa City) said: “The company is a subsidiary of Hansol Technics Group - Korea specializing in manufacturing electronic components for supply to Samsung Corporation. Recently, the company invested in a factory in Ho Nai Industrial Zone 2^nd phase  with a total investment of about 100 USD million and a capacity of nearly 11 million products per year. The goal of Hansol Electronics Vietnam Hochiminhcity Company Limited is to expand production to supply products for domestic and export markets.

Similarly, many FDI corporations and enterprises in Dong Nai also focus on consuming domestic products such as: Nestlé, Formosa, Hyosung, Schaeffler, Kenda, Fujitsu, Boss, Kien Dat...

* The epidemic will be controlled soon hopefully

Due to the negative impact of the Covid-19 pandemic, the export turnover of FDI enterprises in industrial zones in the province increased by only 7% over the same period last year. It is expected that in the third quarter of 2021, exports of FDI enterprises as well as domestic-invested enterprises will be difficult to maintain a good growth rate because enterprises are still "struggling" to prevent the epidemic and maintain production.

Mr. Tran Khanh Huy, Sales Manager of Koyu & Unitek Co., Ltd in the Loteco Industrial Zone (Bien Hoa City) said: “The 4^th epidemic outbreak has greatly affected the company like export orders decreased, the cargo transportation faces many obstacles due to lack of containers and rising costs. Therefore, the company hopes that the pandemic inland and abroad will soon be controlled so that business can return to normal and enterprises can expand exports."

Industrial production declines leading the affected exports. Currently, many enterprises are expecting that in the next 1-2 months, with a Covid-19 vaccine simultaneously injected for workers in factories and in the community, the disease will be well controlled. Thus, enterprises can restore production and speed up to follow the production schedule.

According to Vice Chairperson of the Provincial People's Committee Nguyen Thi Hoang, the Provincial People's Committee has directed the Dong Nai Industrial Zones Authority to inspect the enterprises providing workers stay at the factory to guide the correct implementation of the Covid-19 epidemic prevention requirements epidemic. At the same time, thereby grasping the difficulties and obstacles of enterprises have timely solutions to help maintain production and business, ensuring uninterrupted supply chain.

Vi Quan