Giving Active Assistance to Exporters

According to Dong Nai Provincial Department of Industry and Trade, for the first 5 months of 2012, the provincial export turnover was estimated US$885.6 million, up by 2.2 percent against the previous month, accumulating US$4,155 million, up by 10.2 percent year on year. The accumulation for the first 6 months was estimated US$5,045 million, up by 10.5 percent year on year, beating the year plan by 44 percent.

 

In light of economic difficulties with increasing prices of some goods and decreasing domestic demand, some key export markets of Dong Nai enterprises reduced their trade, cutting and destabilizing export volume. It troubled businesses and caused inventory to go up.

 

In particular, the export of cashew nuts was expectedly 3,100 tonnes, up by 0.8 percent year on year. In the first 6 months, domestic raw cashew nuts were sold at VND25,000 – 26,000/kg, a stable price year on year. The key markets included China, the United States, and Australia. However, according to cashew farmers, production this year will not be high since many unexpected rains during dry season and cold weather as well as mist at dawn affected the procedure of blooming and fructification.

 

As for coffee, the expected export volume was 91,000 tonnes (valued at US$187 million); equal to 94 percent of the volume and 91 percent of the value year on year. The decrease in coffee export to European markets was due to European sovereign debt crisis. It was also the factor causing coffee domestic price to reduce from VND 47,000/kg to about VND 39,000 – 40,000/kg against previous year.

 

Rubber saw the export volume estimated nearly 7,000 tonnes (down by 10 percent year on year) and export price decrease from US$4,377/tonne to US$2,922/tonne (down by 33 percent). The export turnover was estimated about US$20 million, down by 40 percent year on year. The rubber price witnessed significant reduction since the key consuming market – China, given its large inventory, lessened its import demand. In addition, due to hard economic context in 2012, Chinese Government had to adjust GDP growth from 8 percent to 7.5 percent. Meanwhile, the service cost increased (due to oil and petroleum price increase), which made transport and production costs shoot up, causing difficulties for enterprises’ export. However, as some other markets such as India and Malaysia have had demand recover, the rubber export price is returning to normal.

 

In the industrial commodity group, textile and garment and footwear saw the highest proportion in export turnover. For the first 6 months of 2012, these two sectors had growth rate of 12 percent (higher than that of the province). Wooden products’ export turnover was down by approximately 7 percent due to market obstacles.

State enterprises and local ones gained the export turnover of US$8.4 million and US$93.5 million, respectively. Foreign funded businesses had export turnover estimated US$784 million, up by 2.3 percent against last month.

 

According to Mr Le Van Danh – Director of Dong Nai Department of Industry and Trade, the main export markets of provincial enterprises included the United States (25 percent), Japan (13 percent), China (11 percent) and Korea (8 percent). The Department has actively supported businesses to seek new, high potential markets.

Mr Danh said that the export market structure has been stable compared with last year. However, export turnover saw slower growth year on year due to some main difficulties such as increasing transport and transaction costs, contrary to decreasing export price and hard contexts of some consuming EU markets.

 

To give a hand to provincial enterprises to overcome difficulties, Dong Nai Industry and Trade has actively promoted trading to both national and international markets. Mr Danh added that in the first months of 2012, the department has held many programmes to bring Vietnamese goods to local citizens and help businesses gain better access to national markets, given the export impediment.

 

The programmes held by Dong Nai Department of Industry and Trade included 03 market fairs for workers in Cam Duong Rubber Farm in Cam My district; Bien Hoa 2 and Long Thanh Industrial Zones. There were 60 enterprises attending with 138 stalls, gaining VND1,182 million. Besides, 7 fairs introducing Vietnamese goods to rural areas in Tan Phu, Dinh Quan, Xuan Loc, Vinh Cuu, Trang Bom districts and Long Khanh township attracted 89 businesses with 179 stalls, gaining VND1,741.8 million and drawing about 21,000 visitors. There were 02 agricultural businesses assisted to participate in the Central Highland Agricultural Trade Fair 2012 in Dak Nong province; 08 ones to join the common kiosk in 2012 Mekong Delta Trade-Tourism and Investment Trade Fair in An Giang.

 

At the same time, the department also organized trade promotional missions with China businesses to export Dong Nai agricultural products in Quang Ninh (with the participation of 10 enterprises). There was a promotional mission in Myanmar (with attendance of Donafoods), a mission attending the International Interior Fair in Singapore (including 09 enterprises producing and trading bamboo and handicraft products, some of which signed the contracts valued US$360,000), and a trade promotional mission in Kunming – China with involvement of 10 enterprises. Besides, there was a promotional mission led by the provincial heads to study markets in France, Switzerland, Japan and Korea. These were precious opportunities for provincial businesses to seek investment and cooperation in those potential markets.

Mr Danh also shared that in the last months of the year, the industry and trade department will hold programmes to bring goods to citizens in order to stimulate trade in the province. Investment promotion will be paid close attention through activities such as organizing missions of enterprises to survey the Myanmar market (18 ones); to attend Handicraft and Furniture Exhibition in Germany; and support Dong Nai businesses to meet 2 missions of foreign enterprises and importers in Bien Hoa.