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Many FDI enterprises pay attention to the domestic market

Since 2020, due to the impact of the Covid-19 epidemic and difficult export, many foreign direct investment (FDI) enterprises in Dong Nai have paid attention to expanding domestic consumption. Therefore, the domestic market share of FDI enterprises has increased quite high.


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Producing equipment, machinery for export and domestic consumption at Boss Industry Co., Ltd. in Song May Industrial Park (Trang Bom district)

 According to the Dong Nai Industrial Zones Authority, in the first two months of this year, FDI enterprises in industrial zones consumed goods in the domestic market with nearly $ 1.44 billion, up 22% year-on-year. before. Currently, goods of FDI enterprises in industrial zones for domestic consumption account for 40% of total revenue.

 

Increase market share in the domestic market

 

 In 2020, the domestic market has helped many domestic and FDI enterprises. At that time, enterprises faced many difficulties due to unfavorable inputs and outputs, because imported raw materials were lacking, and products were exported slowly. Many businesses have returned to find raw materials in the domestic market, this is an opportunity for many businesses to increase their domestic market share. Dong Nai is one of the leading supporting industries in the country. Enterprises easily find customers in Vietnam to buy and sell products.

 

 Mr. Khuat Quang Hung, Head of External Communication Department of Nestlé Vietnam Co., Ltd. in Bien Hoa 2 Industrial Park said: “At the beginning of the Covid-19 epidemic, the company was affected by a number of products. for export and domestic consumption. However, after that, the company has researched the market and adjusted its production plan, offering domestic and foreign products that are in need, so domestic consumption increases and exports are still stable ”.

 

 In the export structure of Dong Nai, about 60% of turnover is input for many industries such as: textiles, footwear, computers, electronic components, machinery, equipment, spare parts, and chemicals. substances, plastics ... These are also the items that enterprises in Dong Nai and other provinces and cities have to import a lot from China, Korea, Taiwan, ... When it is difficult to import raw material, businesses have returned to source goods in the domestic market.

 

 Mr. Yasuhiro Tada, General Director of Kureha Vietnam Co., Ltd in Amata Industrial Park (Bien Hoa City) said: “For more than a year, the company has increased its search and purchase of raw materials for production in Vietnam, Only domestic products that cannot meet these requirements are imported. Having domestic raw materials will help businesses be more proactive in production. Production companies also pay attention to increase their consumption in the domestic market. Therefore, the company's production is still stable and keeps a decent growth ”.

 

Overcome difficulties

 In Dong Nai, many FDI and domestic enterprises have recovered and accelerated quite quickly. Enterprises have promptly grasped the needs of domestic and foreign markets in the epidemic to adjust production and consumption of goods accordingly. For example, the textile and garment industry has increased production of fabrics to make masks and protective clothing against epidemic. The machinery industry produces additional items for the health sector. Food processing industry, producing products that increase the health of the people ... Therefore, in 2020, many FDI enterprises will still maintain a relatively high positive growth. Especially in the first 2 months of 2021, the total export turnover of the province increased by more than 17% over the same period last year. In which, more than 70% of total export turnover of FDI enterprises.

Mr. Peter Wu, General Director of Boss Industry Co., Ltd. in Song May Industrial Park (Trang Bom district), President, Taiwan Trade Association in Dong Nai said: “The company specializes in manufacturing equipment machinery exported to many countries. In 2020, when the Covid-19 pandemic occurred, the company cooperated with customers in the United States to produce more types of medical machinery and equipment for domestic and export purposes, so business continued to operate. Continuity is expanding ”.

According to FDI enterprises, Vietnam has signed 13 free trade agreements and has come into effect and import and export tariff lines have been decreasing to 0%. In each free trade agreement, there is a requirement that exported goods that wish to enjoy tax incentives must meet the localization rate of the product. In particular, recently, the Vietnam-European Union Free Trade Agreement is considered to be the salvation of Vietnam during the Covid-18 era. FDI enterprises increasingly look for domestic materials, so enterprises that supply input products only need to ensure quantity, quality, and competitive prices to sign long-term contracts.

Mr. Park Hyun Bae, Chairman of the Korean Enterprises Association in Dong Nai, assessed that in the coming time, Korean enterprises operating in the province will increase connections with businesses in the area to provide input products to each other. . This will bring opportunities for both sides because it increases the rate of localization of products, and at the same time proactive raw materials also helps businesses feel secure in production.

Vi Quan


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