Nghe An strives to achieve an export turnover of 2.87 billion USD.

On the afternoon of February 24th, the Provincial People's Committee held a conference to implement the 2023 export plan. The conference was chaired by Mr. Le Hong Vinh - Member of the Provincial Party Standing Committee, Permanent Vice Chairman of the Provincial People's Committee; and Mr. Pham Van Hoa - Director of the Department of Industry and Trade. Also in attendance were representatives from relevant departments and agencies, along with numerous import and export businesses operating in the province.

Overview of the conference. Photo: Thu Huyen

Nghe An's export turnover ranks 28th out of 63 provinces and cities.

According to the Department of Industry and Trade's report, total export turnover in 2022 reached US$2.54 billion, an increase of 4.56% compared to the previous year, exceeding the annual plan by 8.03%. Of this, merchandise exports reached US$2.19 billion, an increase of 3.6% and exceeding the plan by 9.44%. This ranked Vietnam 28th out of 63 provinces and cities nationwide and 2nd in the North Central region.

Many items saw significant export growth compared to 2021, such as textiles, phone components, wood chips, ultra-fine white limestone powder, paving stones, wood pellets, etc.

Notably, the proportion of exported processed goods continues to increase, especially forestry products, minerals, building materials, processed seafood, and some processed agricultural products such as dried tea and fruit juice.

Nghe An's export turnover in 2022. Graphic: Huu Quan

In 2022, businesses in Nghe An exported goods to over 133 countries and territories worldwide. Export turnover to some markets increased sharply compared to 2021, notably: China, South Korea, the United States, Taiwan, and Laos (US$54.1 million, up 42.9%); India (US$43.4 million, up 43%); and Singapore (US$39 million, up 34.6%).

Over 360 businesses (including 200 from within the province and 160 from outside the province) are involved in exporting goods from Nghe An province.

Revenue from import and export activities is estimated at 1,350 billion VND, an increase of 3.8% compared to the adjusted budget submitted to the Provincial People's Council and equal to 81.7% of the actual revenue in 2021.

Produced at Trong Phuc Garment Co., Ltd. in Dien Chau district. Photo: Thu Huyen

Overcoming obstacles and boosting exports.

Although exports in 2022 showed growth, it was not truly stable and the efficiency was not high. The added value content in goods remained low; while export items were diverse, the scale was small and still dependent on sources from outside the province. Most import and export businesses in the province were small and medium-sized enterprises with small-scale production and business operations and weak financial capacity; most businesses lacked long-term export business strategies and had low competitiveness…

Representatives from businesses reported that most production costs have increased, but selling prices are difficult to raise due to market competition with domestic and foreign competitors; in particular, fierce competition among domestic businesses is causing market imbalances and increasingly lower profits. High electricity, water, and fuel costs, coupled with pressure to make immediate payments, are making it difficult for limestone powder businesses in the mining and processing stages...

Mr. Pham Van Tam, Director of Tan Long Joint Stock Company, argued that applying a 285% increase in electricity prices during the hours of 9:00 AM to 11:30 AM and requiring electricity bills to be paid three times a month is unreasonable. (Photo: Thu Huyen)

Businesses continue to face numerous difficulties in exporting goods, including: high transportation costs, and continuously rising energy and raw material prices due to the Russia-Ukraine conflict; many export businesses are struggling, even having to cease operations, due to inflation and low exchange rates in importing countries (South Korea, Japan, European countries, Laos, etc.). In particular, the traditional export market of Nghe An businesses, Laos, is facing significant challenges due to the continuous depreciation of the Kip; many small and medium-sized enterprises (SMEs) report not being able to access loans with preferential interest rates.

The international container ship BIENDONG MARINER docked at Cua Lo Port, bound for Port Klang (Malaysia) - Kolkata (India) - Chittagong (Bangladesh) on the morning of September 22, 2022. Photo: Thu Huyen

Delivering a keynote address at the conference, Standing Vice Chairman of the Provincial People's Committee Le Hong Vinh emphasized that 2023 is the mid-term year, of significant importance in accelerating the implementation and striving to achieve the goals of the 5-year socio-economic development plan (2021-2025) and the Resolution of the 19th Provincial Party Congress.

To achieve the target of $2.87 billion in export turnover for 2023, including $2.5 billion in merchandise exports, the province needs to base its plan on the national export and import market development orientation until 2030 and the market development orientation in the province's Export Development Plan for the period 2021-2025.

Comrade Le Hong Vinh stated that Nghe An currently has 299 OCOP products, which serve as a source of goods for businesses to boost exports and create jobs for workers. Currently, the province is undertaking many activities to promote infrastructure investment, attract investment, and facilitate import and export activities.

At the same time, it is requested that relevant departments, agencies, localities, and businesses continue to implement comprehensive solutions for developing export goods; review the planning of raw material areas and agricultural processing areas for the province's key products; actively promote investment and attract domestic and foreign investors to Nghe An, with a focus on FDI enterprises producing high value-added, environmentally friendly goods.

Permanent Vice Chairman of the Provincial People's Committee Le Hong Vinh presents Certificates of Commendation from the Provincial People's Committee to 10 collectives for their outstanding achievements in export work in 2022. Photo: Thu Huyen

Strengthen support for businesses to innovate production technology, increase the level of deep processing, and enhance the competitiveness of products, especially agricultural products of the province. Regularly pay attention to export promotion activities; improve and enhance the competitiveness of logistics services;...

Regarding the businesses' recommendations, the Standing Vice Chairman of the Provincial People's Committee stated that they will review and strictly handle any actions that create difficulties or harass businesses. Issues such as raw material prices, electricity prices, exchange rates, customs procedures, and support programs for business promotion will be handled and responded to by relevant departments and agencies, in the spirit of accompanying and resolving difficulties for businesses.

On this occasion, the Chairman of the Provincial People's Committee awarded Certificates of Commendation to 10 collectives that had achieved outstanding results in export activities in 2022.