Major trading markets with Dong Nai

Production of goods for export at Dong Nai Garment Corporation Joint Stock Company (Bien Hoa City)

Currently, the United States, China and Japan are the 3 largest export markets for industrial products of enterprises (DN) in Dong Nai province. At the same time, the above markets along with Korea are the places where Dong Nai enterprises buy many raw materials and machinery for production.

*Dong Nai's 4 main markets

The United States, China, Japan and South Korea are the main markets, account for more than 52% of the province's total export turnover. In the first 4 months of 2021, businesses in the province exported to above markets over nearly 4 billion USD. In which, mainly footwear; wooden product; textile; textile fiber; machinery, equipment, tools and spare parts; computers, electronics and components; means of transport and spare parts.

Because of the large trade, when these markets have "turbulence" fluctuations, they will have a great impact on series of businesses. For example, in 2020, when the Covid-19 pandemic occurred, from February to May, the import-export market was almost paralyzed with hundreds of enterprises with domestic investment and foreign direct investment capital as an image severely affected. Initially, there was lack of input materials for industrial production, followed output stopped due to many orders having to be halted.

In recent years, the United States has always been Dong Nai's largest export market, account for nearly 30% of the province's total export turnover. China is the second largest export market with nearly 11%, Japan ranks third with nearly 9%.

*Avoid depending on a few markets

Up to 40-70% of input materials for industrial production in Dong Nai must be imported from China, Korea, the United States, and Japan. Specifically, in the first 4 months of 2021, enterprises in the province imported nearly 1.5 billion USD of input materials from China, account over 24% of the province's total import turnover. Imported 900 million USD from the Korean market , from the US was 520 million USD, and from Japan was more than 500 million USD. The items that Dong Nai bought lots from the above countries were cotton, fabrics, raw materials for the textile industry, shoes, machinery and equipment for industrial production, chemicals, plastics, iron and steel, metals …

In 2020, the Covid-19 epidemic caused many manufacturing factories in China and South Korea to close for isolation, caused the supply chains of input materials in Vietnam and Dong Nai to be shrinked, caused many difficulties.

Mr Bui The Kich, General Director of Dong Nai Garment Corporation, said: "Materials for the garment industry must be imported from China and Korea quite a lot, so when this market faces difficulties due to the epidemic, diseases, supplies are also limited, any enterprises in the textile industry are short of raw materials. Especially small businesses, lack of input materials capital, small raw material reserves, the supply only needs to be interrupted for 1-2 months, production stopped”.

According to Mrs Bui Thi Thanh An, Deputy Director of the Vietnam Trade Promotion Agency (Ministry of Industry and Trade), Import and export concentrated in a few large markets, when an incident occurs, it will greatly affect the country Domestic production. Therefore, for many years, the Trade Promotion Department has supported enterprises in provinces and cities in the whole country to expand trade with many countries around the globe.​

Vi Quan