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Exporting the key items of the province - great potentials but challenges

Monday, 07/05/2018

In 2017, the growth rate of the total products in the province reached 7.68%, higher than the general growth of the economy. The consumption market was expanded, nearly 200 enterprises operating in the field of export made efforts on seeking new orders, contributing to increase the export turnover of the province.

The production line of electronic components of Jahwa Vina Co., Ltd (Khai Quang IP).

Exceeding USD 2 billion, in 2017, the total export turnover of the province increased more than 13% compared to in 2016 and increased 0.3% compared to the plan set out. In which, the turnover of some export items increased highly compared to the previous year: tea (up 18%); textiles (up 15%); car seat cushions (up more than 13%); Electronics (up nearly 7%).

By the end of February, 2018, the total export turnover, which was managed and implemented the clearance procedures by Vinh Phuc Customs Department, reached over USD 440 million. In particular, the export items gained high turnover such as: Clothes (over USD 9 million); motorcycle spare parts (USD 5 million); ceramic tiles (over USD 980 thousand); plywood (nearly USD 500 thousand) ...

The province's export market is basically stable, goods of enterprises in the province continue to reach the markets in more than 40 countries and territories around the world. Until now, Vinh Phuc has maintained 8 key export items: motorbike and motorbike components; automotive parts; car seat cushions; tea; electronic components; textiles; footwear; mechanical items. The main export markets of enterprises in the province are the United States, EU, Russia, ASEAN, Japan, China, South Korea and Taiwan.

Vietnam has signed and joined in many free trade agreements in recent years that created the favorable conditions for the export goods of the province, at the same, the rules on the origin of the export products opened many opportunities to attract FDI projects from the membering countries to take advantage of opportunities to increase the export value.

With the objective actively supporting goods produced in Vinh Phuc to affirm the positon in the market, over the last years, together with the promulgation of mechanisms and policies, creating a favorable investment environment, the province has always accompanied and promptly removed all difficulties and obstacles for enterprises to develop. Thus, even in difficult times, the enterprises operating in the import and export sector of the province still have the stable development steps, make the important contribution to the strong socio-economic development of the province.

These results are due to the provincial People's Committees focused on directing all levels and sectors to implement many synchronous solutions, create conditions for enterprises to stabilize production, renovate technology and improve the product's quality, expand the markets.

Especially, with the breakthrough both in terms of output and revenue of the electronic part manufacturers, up to now, the electronic component has become one of three key industrial products of the province, making an increase of 62% compared to in 2016, equivalent to the proportion of the automobile industry.

In addition, 2017 is the first year, when the motorcycle output rebounded after many years of decline. In the past year, the province continued renovating the investment promotion activities, improve the business environment, attract investment from many countries, set up the investment promotion delegations in several countries such as Japan, South Korea, France, Russia, Germany, India, South Africa, United Arab Emirates ...

At the same time, directing the departments, agencies and localities to enhance the quality of administrative procedure reform; directing the advisory agencies to promulgate the regulations on land support and supporting the expenses for the elaboration of environmental impact assessment reports; calling for investment in building the infrastructure of industrial parks, reducing the land lease price, infrastructure lease price for enterprises in the industrial parks.

However, besides the positive results, the export sector in the province still faces to many difficulties and challenges. The number of newly established enterprises has sharply increased, but the number of dissolved enterprises is very high.

By the end of 2017, the whole province had 8,450 registered enterprises (in which, 70% of enterprises actually operated, 30% of businesses stopped their business for a definite time, awaiting for the dissolution due to the limited financial, management capacity, had no production ground and hadn't seeked the market yet.

The infrastructure in some industrial parks (Song Lo, Lap Thach) has not met the requirements of the investors so it is difficult to attract the foreign direct investment, especially large projects. Meanwhile, some industrial parks have many problems in terms of land clearance.

Especially, the automobile sector has been considered as a spearhead economic sector of the province. However, this sector is forecasted to be affected by a number of tariff reduction policies in 2018 for the import of electronic components and cars from ASEAN countries dropping to 0%, affecting to the automobile sector in the province, affecting to the export turnover of the province as well as affecting to the investment attraction in the field of automotive and some related fields.

Vinh Phuc News

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