Some industries in Dong Nai have a huge export surplus

​Dong Nai currently trades with over 170 countries and territories. In which, there are a number of commodity groups with large export surplus, such as footwear, textiles, wood products, textile fibers, coffee...

Producing clothes for export at Dong Tien Joint Stock Company, Amata Industrial Park (Bien Hoa City).

According to the Provincial People's Committee, in the first 10 months of 2022, Dong Nai had a trade surplus of nearly USD 4.7 billion, up nearly 48% over the same period last year. Currently, Dong Nai is in the Top 5 leading provinces and cities in the country in terms of commodity exports. Especially from 2014 to now, the province has always had trade surplus.

*Many years of excellence

 Dong Nai has had nearly 9 consecutive years of trade surplus. The above result is because from 15 years ago, the province has given priority to inviting enterprises with domestic investment capital and foreign direct investment (FDI) in supporting industries for key manufacturing industries. Every year, the number of investment projects in the field of supporting industries in the province accounts for more than 40% of newly attracted projects.

 Mr. Nguyen Thanh Minh, Head of Administration and Personnel Department of Action Composites Hightech Industries Co., Ltd. in Nhon Trach 3 Industrial Park, phase 2, said: “The company specializes in manufacturing components for bicycles, motorcycles, cars in the world. Over the past 2 years, the world economic situation is difficult, but the company's output is still guaranteed because it has expanded the consumption market.

Recently, the company has completed and put into operation a new production line to increase output to meet the needs of customers. It is expected that in 2023, the company will open another factory in Dong Nai and increase the capacity 2 times compared to the present.

 Due to selectively attracting investment and prioritizing projects in the field of supporting industries, in 2014, Dong Nai had a trade surplus of more than USD 500 million USD, in 2015 it increased to USD 1.4 billion, in 2016 it was more than USD 2 billion, and nearly USD 2.2 billion in 2017…and nearly 4.3 billion USD in 9 months of 2022. It is expected that in 2022, Dong Nai's trade surplus will be 10 times higher than that of 2014.

 Currently, footwear is the industry with the largest export turnover and trade surplus in the province. Specifically, in the first nine months of 2022, the export turnover of footwear is more than USD 4 billion, the import of raw materials is just over USD 600 million and the trade surplus is about USD 3.4 billion.

 
Mr. Le Quoc Thanh, CEO of the Vietnam region, Phong Thai Group said: “The group has 5 companies in Dong Nai specializing in manufacturing all kinds of shoes for export. In recent years, the group has always focused on sourcing raw materials in the country to reduce transportation costs and take the initiative in production. At the same time, products with a high localization rate when exported to countries that Vietnam have signed trade agreements with will enjoy tariff preferences and increase competitiveness.

 * Super large export group

 In the 10 months of 2022, in addition to footwear, the groups of Dong Nai products that are exporting billions of dollars are wood products of nearly USD 1.5 billion; textile and garment nearly USD 1 billion; vehicles and spare parts nearly USD 900 million; textile fiber nearly USD 900 million; machinery, equipment, tools and spare parts over USD 760 million; coffee nearly USD 450 million. According to Mr. Pham Van Cuong, deputy head of the Dong Nai Industrial Zones Authority, the FDI projects that have attracted new attention in recent years have mostly been in the field of supporting industries for key industries. Currently, industrial parks have more than 100 FDI projects being implemented, including many projects in supporting industries, when the above projects come into operation, it will increase the supply of input materials for production, reducing the need to import.

 
Since the outbreak of the Covid-19 pandemic, the supply chain of raw materials is often interrupted, multinational corporations tend to move production plants to Vietnam. Therefore, many enterprises producing input products for FDI corporations have come to Vietnam to conveniently supply inputs to partners. This helps to increase the localization rate of export products.

 General Director of Dong Nai Garment Corporation Joint Stock Company Bui The Kich shared: “With the garment industry, there are orders that have been active in domestic materials to 70-90%. The domestic supply of raw materials is also increasingly diversified with competitive prices. Therefore, businesses all pay attention to finding raw materials in the domestic market and only import products that do not have suppliers in the country.

 The trend of recent years, when FDI corporations invest in Vietnam, they lead many small enterprises to supply input products for themselves. The above enterprises, in addition to supplying corporations, have expanded production and supply for domestic and export markets.