Business Business

06/03/2019 - 08:21

Towards intensive export

Gradually increasing the proportion of processed goods, gradually decreasing raw export, developing products and expanding market are the solutions for increasing the provincial export turnover (ET) in the period of intensive and extensive integration.

Wood chip export enterprises invest in machinery, vehicles and link consumption to increase export turnover. Photo: HOAI THUONG

Growth in quality and quantity

In the last three years, the growth rate of goods ET in the province in the following year is higher than the previous year (up 13.21% and 6.2% in 2017 and 2018 respectively). The total ET in 2018 reached USD 862.3 million, of which the enterprise sector with 100% domestic capital reached over USD 390 million, up 12.84%; the foreign-invested enterprise sector reached over USD 472 million, up 1.35% against 2017.

In 2018, the key export products of the province were in processing industries, accounting for 87.4%. Among them, garment products accounted for 55.7%; fibers and yarns 22.7%; wood and wood products 9%; agricultural and aquatic products only 6.42%. Suddenly in 2018, the groups of goods such as incense and incense powder, beer, Sake wine, handicrafts, cement packing and so on had the ET increase of 91.1% over 2017.

In recent years, the structure of export goods has undergone a positive change in the direction of gradually increasing the proportion of processed goods, gradually reducing raw and processed goods export. Many export textile and garment establishments have invested in new infrastructure, lines, machinery and equipment to produce complete products, increase capacity and expand export markets. In particular, Scavi Company, Vietnam Hanesbrands Company, Ltd - Hue branch, Hue Textile and Garment Joint Stock Company, Hanex Company, Ltd, a number of textile and garment units in Phu Vang, Quang Dien and so onhad the ET increase of about 12% year on year.

Some enterprises exporting agricultural and aquatic products such as Thua Thien Hue Seafood Development Joint Stock Company, CP Joint Stock Company for Animal Husbandry - Thua Thien Hue Refrigeration Branch always pay attention to investment in improving product quality to both meet the traditional market and create prestige for many partners in order to expand new export markets in Europe, the United States and Japan. In consecutive years, the export value of these units increased by 15-20% pa.

With forest raw material increasing in quantity, quality, the enterprises exporting the wood and wood products such as Pisico and Shaiyo AA Export Forest Products Processing Joint Stock Company, Hue Hao Hung Company, Ltd and so on are proactive in exporting goods to big markets.

Director of Export Forest Products Processing Joint Stock Company Pisico, Huynh Thang said in order to diversify products, increase export goods value, the unit has entered into joint venture and association with some export enterprises in this field,

invested in a factory producing renewable energy pellets made from wood chips with a capacity of 48,000 products pa. The production of high-class fine arts wood items, incense, incense powder and so on is also linked by enterprises to increase the quantity and models of exports.

Workers are working at MSV Company, Ltd. Photo: MINH NGUYEN

Present in nearly 60 countries and territories

Export turnover will reach USD 1.25 billion

According to the province's commodity export development plan, there is a need to strive for USD-1.25-billion ET of goods by 2020. The structure of export goods includes textile and garment industrial products accounting for 73.2%; agriculture, forestry and fishery 20%, other groups 6.4%, minerals 0.4%. Export market continues to expand to countries in ASEAN, Northeast Asia, West Asia, South Asia, Europe, America, Africa, Oceania and so on.

The province's export enterprises have made good use of tariff preferences in Free Trade Agreements (FTA) Vietnam signed to enter and expand new export markets. The evidence is that ET to big markets continues to have a high growth rate, like to Japan, up 16.89%; to South Korea, 29.0%; to China, 69.36%; to Australia, 134.43% and so on.

In addition to their presence in nearly 50 countries and territories, the enterprises have been proactive in seeking new export markets, thereby developing 10 more new export markets

In order to maintain and expand export markets such as China, India, Korea, Japan, EU, in 2019, Huy Anh Phong Dien Rubber Company, Ltd will raise the plant's capacity from 6,000 tons pa to 10,000 tons pa and focus on improving product quality to raise the ET of rubber products to satisfactory growth in the coming years, contributing to the provincial export growth.

To date, Vietnam has signed and is implementing 11 regional and bilateral FTAs, signed and concluded 2 FTA negotiations and are conducting 4 other FTA negotiations with a total of 58 economies. Taking advantage of this condition, the enterprises of the province have participated more deeply in the value chain, global production network, and improved the export value of key products to continue maintaining the growth of the key groups of goods.

According to Mr. Nguyen Thanh, Director of the Department of Industry and Trade, in the list of projects calling for investment in the period of 2017-2018 and orientation to 2020, the province gives priorityto the export and production development projects in the field the province has the upper hand such as textiles, pharmaceutical production, aquaculture, wood processing. At the same time, the province focuses on investing in developing some traditional products, value-added products, technology content, high grey matter, and environmentally-friendly products.

The province has also issued 9 contents to support small and medium enterprises such as supporting administrative procedures, credit finance, production and business sites, technology, intellectual property, human resources, market expansion, consulting information and so on.