Nghe An: Striving to achieve 500 million USD in export turnover

(Baonghean) - Nghe An's goods are present in 66 countries, the total export turnover has increased sharply, many large orders have come to export enterprises, these are positive signs of import and export activities in the first 9 months of this year. And many important trade promotion activities will be organized from now until the end of the year, expected to bring positive results for this field in the following years.

Good news

Although there are still many difficulties in the world economy and the domestic economy, the results of the province's import and export activities have some positive signs. Notably, the total turnover in the first 9 months is estimated to reach 560 million USD, of which the export turnover of goods is estimated to reach 366.6 million USD, an increase of 14.02% over the same period last year, reaching 73.32% of the 2016 plan.

Among more than 22 main export items, the number 1 position belongs to textiles and garments. According to the updated figures of the Department of Industry and Trade, in the first 9 months of the year, this item is estimated to reach more than 110 million USD, an increase of nearly 63% compared to the same period in 2015. According to Mr. Vu Khanh Cuong - Import-Export Department of Namsung VINA Co., Ltd., with 2 main products being women's dresses and shirts, the company's products are mainly exported to Korea with more than 60%, followed by the US with 25%, the rest are exported to China, Thailand, Australia...

This year, the company’s export volume has increased rapidly thanks to attracting more large orders from Germany and the US, especially orders to prepare goods for the end of the year and Tet. If last year, the company only needed 1,600 workers, this year it has to recruit 200 more workers to meet customer orders.

Yarn production line at Hoang Thi Loan Textile Joint Stock Company. Photo: Binh An

While textiles and garments ranked first with the main market being South Korea, wood chips ranked second with a turnover of nearly 80 million USD, the main export market being China. This is also the market that occupies the top position in the province's overall exports with 38.73%. The next largest markets are South Korea, Laos, India and Hong Kong. With the expansion of new markets such as Qatar, Samoa, El Salvador, Kenya, Madagascar, Belarus... this year, Nghe An goods are present in 65 countries around the world.

Decrease in some areas

While opening up a number of new markets, the results of the past 9 months also show that both export and import turnover from the traditional market of Laos has decreased sharply. Of which, the export turnover in the first 8 months reached 23.29 million USD, down 25.18% compared to the same period last year; the import turnover in the first 8 months reached 21.76 million USD, down 58.04% compared to the same period in 2015.

The reason for this decline is that Vietnam is implementing Decision No. 52/2015/QD-TTg of the Prime Minister and Circular No. 52/2015/TT-BCT of the Ministry of Industry and Trade on the management of border trade activities with countries sharing borders, in order to tighten border trade activities.

Along with that, Laos also increased import tax on construction materials, and also issued a directive to strictly strengthen the management and inspection, exploitation, transportation and trading of wood. The most affected is the regulation from May 13, 2015 to stop the export of round wood and decorative wood; at the same time, only finished wood or sawn wood is allowed to be exported to Vietnam.

Processing wood chips for export by Thanh Thanh Dat Company in Hoang Mai Town. Photo courtesy

According to Mr. Nguyen Xuan Thanh - Head of Import and Export Management Department - Department of Industry and Trade, the biggest difficulty of this sector in the past 9 months is that the source of goods for export is still fragmented and small. Most import and export enterprises in the province are small and medium enterprises, with small production and business scale, weak financial capacity; most enterprises do not have a long-term export business strategy, low competitiveness.

Along with the trend of increasingly deep integration, more and more sophisticated new barriers appear (such as anti-dumping, social standards, environment, food safety and hygiene ...), causing difficulties and significant losses for export activities of enterprises in the province in particular and the whole country in general. In addition, the market is unsustainable, payment conditions are unfavorable.

For example, with the ultra-fine stone powder product, Nghe An's export companies are always dependent on markets such as India, the US, and Japan. Businesses always face risks because they are only paid 30% initially, the remaining 70% is only paid when all the goods are sold. For peanuts, which are considered a strength, this year they are mainly exported through small-scale traders at Chinese border gates, without direct export orders.

Search for new partners and markets

Discussing solutions on how to complete the plan and boost exports and imports in the coming time, Ms. Vo Thi An - Deputy Director of the Department of Industry and Trade said that according to the year-end acceleration rule, it is confident that the plan target will be achieved. Currently, the department also requested export enterprises to actively prepare enough goods for the end of the year, especially the Lunar New Year. Along with that, it will actively propagate for enterprises and relevant state agencies to fully implement trade agreements, including the Vietnam - Eurasian Economic Union (EAEU) free trade agreement, which officially took effect from October 5, 2016 after more than a year of signing.

Accordingly, more than 90% of Vietnam’s exports to Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan will be exempted or have reduced taxes, and at the same time access to this market of more than 183 million people. Before this door, Nghe An businesses need to be ready to enter the big global playground.

The Department of Industry and Trade, together with relevant departments and branches, simultaneously conducts trade promotion activities in Japan, Germany, and France in various forms such as participating in Vietnam's booth in Japan, meeting with German trade counselors, connecting with Vietnamese businesses in Germany and France, and participating in international fairs held in Vietnam.

"With the above methods, the Department of Industry and Trade, with its state management responsibilities, will strive with businesses to achieve the export turnover target in the province in 2016 of 680 million USD, of which 500 million USD will be exported goods," Ms. Vo Thi An emphasized.

An Nhan