Export is one of Vietnam's important growth drivers, but this pillar is facing difficulties due to a decline in orders for many export industries. Supporting businesses in restoring production and strengthening the export capacity of localities, especially key areas, solutions are needed, while maximizing the capacity to overcome challenges. Economic expert, Associate Professor, Dr. Dinh Trong Thinh had a discussion with Customs Magazine about this issue.
In the export picture of the past seven months, the number of localities exporting over US $ ten billion has not changed compared to the same period last year, but the turnover of most localities decreased compared to a year ago, this has an impact. How does it affect the growth and development of the economy?
For many years, Ho Chi Minh City, Hanoi, Binh Duong, Dong Nai, Bac Giang, Bac Ninh... are major export centers of the country. These are provinces and cities with high specialization in the production and supply of machinery parts, technological equipment, televisions, computers, and phones for export to the world. Therefore, the results of export turnover of these provinces and cities are important in developing our country's export activities.
In recent months, the decline of these industries is one of the reasons why export activities have slowed down, especially mobile phones, electronics, and electronic components have all declined. In addition, the textile, footwear, and wood processing sectors are also key export industries with a sharp decline in the first seven months of 2023.
However, there are signs that the market is warming up. Since July, we have seen a very strong increase in both small orders and large orders in the field of computers, electronic products and components. It is clear that this sector is recovering.
In addition, the activities of many industries such as wood, textiles and garments also have positive changes when orders have returned. Signs show that export activities will hopefully warm up in the near future. Many businesses in localities such as Hanoi, Ho Chi Minh City, Binh Duong, and Bac Ninh are returning to recruiting large numbers of workers to fulfill orders, along with increasing demand for imported raw materials and enter accessories.
Since early August, a business in an industrial park above Bac Giang announced the recruitment of tens of thousands of workers, hoping to recruit at least five thousand workers in August. In Binh Duong, there are businesses recruiting 3,000-4,000 workers. Therefore, export activities are returning relatively positively, along with domestic consumption in recent times increasing strongly. This is an opportunity for businesses to expand production and business, thereby restoring export activities.
According to you, what industries come from the main driving force for the prosperity of export activities in these provinces and cities?
The growth potential of leading provinces and cities is mainly focused on processing and manufacturing industries, with industrial goods such as computers, phones, electronics and accessories. These are items that tend to increase strongly in the coming time.
Next, the wood industry has returned and has a very good signal compared to previous times. This used to be one of our country's key export industries.
Another is textiles, however, the growth rate of this industry is slower than our expectations. Textile and garment industry will probably still face many difficulties in the coming time, when the activities of converting production and business methods as well as labor organization and prices have not changed much. Weak competitiveness causes businesses to lose orders in traditional markets because orders fall into the hands of other "competitors". Therefore, if businesses cannot grasp small orders to stand on their feet, thereby regaining traditional markets, it will be difficult to get new orders at the end of the year.
What solutions do you think localities need to support businesses in restoring production and business and increasing export orders,?
Recently, Hanoi established a Steering Committee to remove difficulties for businesses and investment projects in the area, the head of the committee is the City Chairman. That shows the importance of immediately removing difficulties and obstacles so that businesses can grow and develop.
Besides, promoting production and business activities also depends greatly on calling the workforce back to production, as well as training human resources. Solving this problem, local authorities also need to have solutions to support businesses in attracting labor sources inside and outside the province, combining training to improve workers' skills to meet the requirements in new conditions.
Next is to consider tax exemption, reduction, extension, and refund policies; Priority policies, tax incentives, and fees for businesses to be beneficiaries of the policies must be enjoyed as soon as possible and best.
Thank you Sir!
Source: VCN
Keywords: import, export, growth
