Timely removal of difficulties for export enterprises

Unloading goods at Cua Lo port. Photo: Thu Huyen

Many difficulties

The complicated epidemic continues to greatly affect the socio-economic development situation, but with the efforts of the business community and the direction of authorities at all levels, in 2021,export turnoverNghe An's export turnover grew remarkably, reaching 2.43 billion USD, an increase of 60.77% compared to 2020. Of which, goods export reached 2.11 billion USD, an increase of 76.04%, exceeding 132.2% of the yearly plan.

In the first quarter of 2022, the export turnover of goods continued to grow positively, reaching 544.8 million USD, up 28.1% over the same period last year. However, businesses still continue to face many disadvantages. Notably, China's new regulations on measures to tighten the Covid-19 epidemic; strengthening supervision and strict implementation of regulations on activitiesagricultural and aquatic product importson the land border has caused many difficulties for businesses in transporting, clearing customs, and exporting agricultural products to China. In addition, the tense war situation between Russia and Ukraine has caused many businesses to lack production supplies, and export activities to Russia face many risks in transportation, payment, and increased costs, etc.

KiDo Vinh Company Limited has abundant orders, ensuring jobs for workers. Photo: Thu Huyen

Representative of KiDo Vinh Co., Ltd., Ms. Ho Thi Thu - Head of Import-Export Department said that KiDo Vinh is a 100% Korean-owned enterprise. Currently, the company needs 1,200 workers but cannot recruit enough because there are many garment enterprises in the area, competing to attract workers. Therefore, we have to hire outside workers to process goods, especially during peak periods.

“Like many other export businesses, we are facing difficulties due to the prolonged pandemic affecting production and business, especially sea and air freight rates continuously reaching peaks, leading to increased costs. In addition, the tax refund period is too long, causing difficulties for businesses...” - Ms. Thu said.

At Asia Hoa Son - Anh Son Company, last year, the cassava starch output of the manufacturing enterprise reached 35,000 tons, glucose output 13,600 tons, revenue 590 billion VND, average income 10 million VND/person/month. However, the enterprise is facing some difficulties in export activities.

Currently, import and export activities at the northern border gates between Vietnam and China are temporarily closed. Some border gates have reopened (Kim Thanh border gate, Lao Cai), however, the volume of goods exported through these border gates is very slow and the costs are also high. Official exports are mainly by sea through some major ports in Vietnam such as Hai Phong port, Quy Nhon port, etc. In addition, due to the policy of tightening border trade, companies concentrate on official exports, so the amount of containers supplied for export goods is not enough.

Mr. Nguyen Van Giang - Deputy General Director of Asia Hoa Son - Anh Son Company

Discuss solutions to boost exports

Currently, there are many difficulties in import and export activities such as labor recruitment, seaport infrastructure, transportation costs, inadequacies in customs work, tax refund documents, etc. Enterprises also make recommendations to relevant authorities to remove difficulties and promote import and export.

Producing spoons for export at Hong Son Production and Trade Company Limited, Do Lang Industrial Park, Nghi Lam Commune (Nghi Loc). Photo: Thu Huyen

Ms. Nguyen Thi Thanh Ha - representative of Vilaconic Company suggested to strengthen trade promotion activities, import and export. International fairs are channels to connect trade, have Nghe An business booths to promote products, deployed immediately after the pandemic. At the same time, it is necessary to complete seaport infrastructure, Thanh Thuy border gate to connect with the Lao market, thereby promoting trade from Southwest China with Vietnam.

“In order for businesses to confidently reach out to the big sea, “if you want to go fast, go alone - if you want to go far, go together”, we hope that the Department of Industry and Trade will act as a focal point to connect import-export business clubs to exchange experiences and avoid risks; at the same time, organize training sessions to improve import-export knowledge for businesses” - Ms. Ha shared.

Regarding tax policy recommendations, Mr. Nguyen Van Giang - Deputy General Director of Asia Hoa Son Company said that VAT policy is hindering businesses in exporting to the Chinese market. Manufacturing and trading enterprises are facing many difficulties: No input VAT refund, risk of collecting refunded tax, unable to export goods leading to lack of capital, capital stagnation for production, business and bank debt repayment. We request the Nghe An Department of Industry and Trade to consult with the Tax Department to remove difficulties for the cassava starch processing industry in the work of refunding import and export tax.

Producing canned fish for export at Royal Food Factory, Nam Cam Industrial Park. Photo: Thu Huyen

To achieve the export turnover target of 2.35 billion USD in 2022, the Industry and Trade sector has proposed 5 groups of solutions such as creating export goods sources, improving the effectiveness of export promotion, improving the competitiveness of export enterprises, developing infrastructure and services for export and improving the effectiveness and efficiency of state management in the field of import and export.

Faced with complicated fluctuations in the export market, Standing Vice Chairman of the Provincial People's Committee Le Hong Vinh directed and requested departments, branches and localities to coordinate with the Industry and Trade sector to promptly grasp the situation to remove difficulties and support export enterprises.

Due to the impact of the epidemic, cargo containers have become scarce and expensive, affecting export activities. Photo: Thu Huyen

Standing Vice Chairman of the Provincial People's Committee Le Hong Vinh requested that departments, branches, districts, cities, towns and related enterprises continue to synchronously implement solutions to promote investment and call for domestic and foreign investors to invest in export production in Nghe An.Developing export marketsThrough activities connecting export supply and demand, participating in international exhibitions, organizing trade connection delegations... to seek and diversify consumption markets for the province's export products, avoiding dependence on one market to limit risks. Encourage small-scale export enterprises to switch to official export; Research market demand to advise on the production of goods suitable to the needs of the world market.

The Standing Vice Chairman of the Provincial People's Committee also requested relevant sectors: Tax, Customs, Transport... to coordinate and create favorable conditions for the production, circulation and distribution of goods in the province, domestically as well as the import and export of goods to foreign markets in the coming time; the Tax sector should soon provide guidance to enterprises participating in export activities on payment methods as well as recommend measures to prevent risks in payment when signing contracts.

Nghe An has exported more than 50 items/groups of items to countries around the world. Many items have had good export turnover growth, such as: corrugated iron, steel of all kinds, cement, textiles, electronic components;... The export market is diverse with more than 125 countries and territories in the world. Some new export markets in the year are: East Timor, Sierra Leone, Burundi, Marshall Islands, Luxembourg. The number of exporting enterprises increased with 270 enterprises in the province, including 188 domestic enterprises and 82 foreign enterprises participating in exporting goods of Nghe An province.