Wooden furniture production for export has grown strongly in the first six months of 2021
Expanding the market
During the first months of 2021, many enterprises with export industries have had advantages when orders continuously increased, export markets expanded to many other countries around the world. As a result, the value of export turnover increased, and the workers’ lives have been quite stable.
As an enterprise specializing in the production of outdoor furniture for export to the US market, compared to the first 6 months of 2020, from the beginning of the year until now, the number of orders of Thua Thien Hue Wood Processing Joint Stock Company has increased nearly twice. Particularly, export turnover reached nearly $5 million, stabilizing jobs for 200 employees.
Mr. Le Duong Huy, the company director, stated that due to the impact of the COVID-19 pandemic, there were some difficulties for goods in some nations, including China, to be exported to the US, which has created favorable conditions for Vietnamese products, especially in the field of interior and exterior furniture. Due to the COVID-19 pandemic, people from all over the world must stay home, which is considered as an advantage for outdoor furniture products to be used more, leading to the orders got increased. Currently, export orders have been signed until the end of 2021.
While developing their manufacture, businesses also strengthen measures to prevent and control the COVID-19 pandemic.
After more than 1 year coming into operation, the Billion Max export processing factory in Saigon Chan May Industrial Park and Non-Tariff Zone has stabilized its production and expanded the factory to increase the production capacity.
In an area of more than 10 hectares, combining with a total investment of more than $23 million in phase 1, currently, the company has three factories producing stably to supply to export to partners in the US, Russia, and Europe. The main export product is children’s toys.
According to the company leader, in the second quarter of 2021, the company will continue to expand investment in phase 2 with the fourth factory having a scale of about 6 hectares, with an investment capital of about $15 million. And, it is expected that when being put into operation, it will employ about 2,000 additional employees.
Growth and "full" orders
Although the COVID-19 pandemic situation is still complicated in many provinces and cities nationwide and many countries around the world, the import and export activities of enterprises in the area still recorded a high growth momentum in the first 6 months of 2021, compared to the same period in 2020, achieving the highest growth rate during recent years. Not only the efforts of enterprises but also shifting export orders have contributed to helping enterprises overcome difficulties to increase the value of export turnover.
With decades of experience in producing textiles for export, after the outbreak of COVID-19, from the beginning of 2020, Phu Hoa An Textile and Garment Joint Stock Company quickly negotiated with their partners, transferred from producing traditional goods to antibacterial cloth masks and medical protective gear. Thanks to this, more than 1,000 employees have always had stable jobs.
From the beginning of this year, through carrying out market survey and understanding the tastes of customers when people in a lot of countries have to limit going out and stay at home to prevent the COVID-19 pandemic, this enterprise has shifted to producing lingerie and home clothes, so the orders are always "full".
According to Ms. Bui Thi Hieu, Head of Human Resources of the company, currently, the orders have been signed until the end of 2021 with a plan to reach a revenue of 300 billion VND. And the business is negotiating with partners to sign the order for 2022. To meet the order, the company has just invested 15 billion VND to equip modern production lines.
Compared to the other key export industries of the province, textiles and garments are still the leading groups with a relatively high growth and attaining export value. With the high number of orders and the increase in export turnover, it is clear that the textile and garment enterprises in the local area have adapted to the new business conditions with solutions to diversify product lines and markets, as well as adjust to the new context of trading and payment mechanism.
Many businesses have continued to invest in equipment, automation technology, which is also one of the factors contributing to creating the foundation for the textile industry to stand market pressures in terms of quality and fast delivery.
According to the Department of Industry and Trade, in June 2021, goods export turnover reached $82.9 million, bringing the total export turnover in the first 6 months of 2021 to be estimated at $500.5 million, rising 35.2% over the same period and reaching 54% of the year’s plan. Specifically, the enterprise sector with 100% domestic capital is estimated to reach $280 million, growing 43%. And the foreign-invested enterprise sector is expected to achieve $220 million, rising 26% over the same period in 2020.
According to Ms. Tran Thi Hoa, Head of Trade Management Department, Department of Industry and Trade, the export market in the first 6 months of 2021 is quite diverse when enterprises have exported to 42 countries such as Korea, Japan, China, and the European Union. ASEAN and European countries, etc., contributing to diversifying export markets, with the aim to avoid dependence on certain markets. From now until the end of the year, businesses will continue to develop products and expand markets to bring the province's export turnover in 2021 to $920 million.
To support and create conditions for enterprises to develop their production and increase their export value, the Department of Industry and Trade is proposing to build a plan to operate a logistics center on the basis of connecting Chan May deep-water seaport and the cargo terminal of Phu Bai International Airport, Chan May - Lang Co Economic Zone, Phu Bai Industrial Park, and other related areas.
In addition, several industrial development projects will be implemented, such as "Surveying and assessing the current situation of industrial clusters and orienting the development of industrial clusters in the province in the period of 2021-2030", conducting solutions to improve import and export activities and develop markets for consumption of specialty products, and, at the same time, strengthen trade promotion and seek output for export products.
Story and photos: THANH HUONG