Shifting the structure of export industries

(Baonghean) - Previously, agricultural products accounted for the majority of the province's total export turnover. In recent years, the structure of export products has shifted towards a more sustainable direction, with the proportion of industrial products growing well. Therefore, in addition to some products that have always been in the top for many years such as wood chips and minerals, textiles and electronics are now showing signs of making a breakthrough.

Textiles and electronics breakthrough

At Lac Son Industrial Park, Do Luong, Prex Vinh Co., Ltd. on a day in early October, the working atmosphere was urgent, workers were working hard on the production lines that were exploited at full capacity. The company's products are quite diverse, including sportswear, ski wear, motorcycle racing products... exported to the European, American and Canadian markets. Built in August 2011, officially put into operation at the end of 2012 on an area of ​​40,000m2 including 2 cutting and sewing workshops, Prex Vinh Co., Ltd. has 48 production lines with a scale of 4,000 workers. Mr. Tran Duc Long - Chief Accountant of the company said: "The enterprise has 100% Korean investment capital with a charter capital of 11.6 million USD. This is the largest factory of the Korean Kido Group. In 2013, the revenue reached 114 billion VND, in the first 9 months of 2014, the export turnover reached over 23 million USD. According to the plan, the sales increase from 20 - 25%/year. Selling in a market with fierce competition like European countries, we determined that we must have a mixed marketing strategy. From segmenting the target market, how to make the product suitable for the market; packaging the product to how to position the product, brand the product, calculate export costs and price the product in the target market, choose product distribution channels and finally pay attention to sales promotion".

Export garment at Prex Vinh Company.

Hoang Thi Loan Textile Joint Stock Company also participates in direct export with a relatively large turnover. The company's leaders said: In the first 8 months of the year, it reached 9,442 tons of various types of yarn, with revenue of 458 billion VND, export turnover of 12,536,000 USD, and budget contribution of 11 billion VND. Currently, the enterprise is one of the top units with large export turnover in the province and is also the main unit of Hanoi Textile Joint Stock Corporation (Hanosimex). In the current production strategy of the enterprise, yarn production is the main focus; the domestic market accounts for 40%, export 60%. The main export markets are Egypt, Turkey, Korea, China, Taiwan and recently it is promoting to the US and Canada markets. It can be seen that, in addition to the long-standing existing factories, many textile and garment projects that have attracted investment in recent times are currently performing well.

Textile factories such as Nam Sung - Vina Dien Chau, Prex Vinh, Havina Kim Lien, Minh Anh, Nam Dan Textile and Spinning Industrial Cluster, etc. have created jobs for tens of thousands of workers, contributing greatly to the province's export turnover. In the first 9 months of the year, textiles alone achieved an export turnover of about 55 million USD. Garment factory projects have initially turned Nghe An into a textile and garment center of the region, producing products for export to demanding markets such as the US, Europe, Japan, etc. Or for electronic equipment, in 9 months, the turnover reached 23.538 million USD. BSE Vietnam Electronics Factory is located in Area C, Nam Cam Industrial Park, Southeast Nghe An Economic Zone, belonging to BSE Group of Korea, specializing in the production of speakers, microphones, etc.; is a partner supplying electronic components for famous phone brands such as Nokia, Samsung Electronics, LG Electronics, Sony, Erricson, Motorola. Although operating for a short time, this business alone has achieved a turnover of 18,523 million USD.

Statistics compiled by the Department of Industry and Trade show that in the first 9 months of 2014, Nghe An's total export turnover reached 486.7 million USD, up 3.76% over the same period, equal to 93.6% of the 2014 plan. Of which, the export value of goods is estimated at 283.8 million USD, up 9.55% over the same period. Items with increased export value include: textiles, pepper, vegetables, children's toys, wood products... The above results have shown that the efforts to attract investment and promote trade of localities and departments with many activities to support businesses, enhance business opportunities have been effective and open up opportunities to export new items.

According to the Department of Planning and Investment, after the working trip of the Nghe An province delegation led by Mr. Dinh Viet Hong - Vice Chairman of the Provincial People's Committee, participating in investment promotion in Japan at the end of August 2014, NT Vegetable Company - Japan started a direct working trip to Vietnam and conducted a survey on ginger products produced in Tuong Duong and Ky Son districts. This is one of the important opportunities for Nghe An ginger to promote its economic value. Returning from the working trip, Mr. Hoang Vinh Truong - Deputy Director of the Provincial Center for Investment Promotion and Development Consulting said: At the "Conference on Investment Promotion in the field of high-quality agriculture" with the participation of more than 300 Japanese enterprises operating in the field of agriculture, the Nghe An delegation provided a lot of information; directly exchanged with 4 Japanese enterprises interested in the fields: Production of high-quality vegetables and flowers; production and processing of ginger products and production of products from bamboo, rattan, and reed.

Need to invest in deep processing

However, many Nghe An products have potential advantages but have not been effective, even the export turnover has decreased such as: wood chips, cassava starch... If in the past, customers often signed long-term contracts to create initiative for businesses, recently customers, especially China, have only signed short-term contracts, the purchase price is not stable. Therefore, many businesses making wood chips, cassava starch... in our province have encountered many difficulties in export work. In 2013, wood chips led in export turnover with a figure of more than 105 million USD, followed by cassava and cassava starch with more than 54.2 million USD. But in the first 9 months of 2014, processed wood chip products reached 485,000 tons (while in the first 9 months of 2013 it was 644,000 tons) and the export value only reached about 43.5 million USD. Cassava starch products also decreased, reaching 34 million USD in the first 9 months of 2014. Therefore, without appropriate mechanisms and policies to create stability, the 2 export products that have always been considered to be in the top export products of the province for many years will find it difficult to achieve the 2014 plan.

According to the Resolution of the 17th Provincial Party Congress, the target set for export is from 500 - 550 million USD; the plan for 2014 is for export turnover to reach 520 million USD. Up to this point, the total export turnover of Nghe An has reached 486.7 million USD. Thus, the target of the congress as well as the annual plan is completely possible to achieve and exceed. However, through the analysis of statistical data of export industries, it can be seen that the products with deep processing content and diverse output have relatively stable export turnover growth; while the products with low processing content, mainly in raw form leading to undiversified output, only limited to easy-going markets, have unstable export turnover, even decreasing compared to the same period.

Therefore, in order for the export turnover of each industry in particular and the total turnover of the province in general to grow steadily and sustainably, according to Mr. Vo Minh Tuan - Deputy Head of Import-Export Management Department, Department of Industry and Trade, export enterprises need to focus on exporting associated with production, creating stable sources of raw materials, investing in deep processing to improve product quality and export value. In addition, promoting market expansion, seeking business opportunities... "Currently, it is the final stage to implement the Export Development Project in the period 2011 - 2015. Therefore, we are focusing on consulting solutions on exporting products, exploiting minerals and other key products, and first reviewing the planning to invest in depth in current processing facilities... In 2015, the decision to stop exporting raw minerals to strengthen the management of mineral resources, prevent smuggling and cheap sale of resources by the Ministry of Industry and Trade officially took effect. Therefore, in-depth investment in the mineral sector must be raised", Mr. Tuan said.

Article and photos:Thu Huyen