Shrimp processing for export at a seafood enterprise. (Photo: SGGP)
General Director of Nam Thai Son Import-Export Joint Stock Company Tran Viet Anh happily informed that the company had just signed a contract to supply plastic products to its partner in the European market with a value of US$8 million. This information can be said to be the most positive signal since the beginning of the year after a difficult time because of the fourth wave of the Covid-19 pandemic, which forced the company to cut capacity and reduce the ability to receive orders. Currently, the number of export orders that the company signed in the first month of the year has reached $30 million. With such quantity, it is enough for the company to run at full production capacity for the whole year. Orders mainly come from the US and European markets. "The situation is quite positive and beyond our expectations. The possibility that orders will continue to come to us is extremely high. The demand will certainly exceed supply," said Mr. Tran Viet Anh.
Along with the excitement in the production atmosphere at the beginning of the new year, Chairman of the Board of Directors of Saigon 3 Garment Joint Stock Company Pham Xuan Hong said that the company had successfully signed two garment orders with a value of over $7 million to export to Japan and the US.
In the field of food and foodstuff processing, General Director of Saigon Seafood Joint Stock Company Truong Tien Dung confided that 2021 was an eventful year. However, overcoming those difficulties, agricultural product processing enterprises were on the way to recovery when receiving several good signals from export markets. Recently, for the first time, the company received an order to supply processed frog products to the Korean market. The feedback from its partner is positive. It will open new opportunities for this food product and many other agricultural products in the coming time.
Assessing the encouraging signs of export at the beginning of the year, economic analysts said that Vietnam has a basis to regain the economic growth milestone of 5.6 percent instead of 2.1 percent in 2021. The remaining problem is how domestic enterprises will increase their production scale to proactively take advantage of opportunities when export orders are shifting heavily into Vietnam.
Regarding this issue, Mr. Tran Viet Anh said that China - the largest supply market - is still implementing the Zero Covid-19 policy. Therefore, enterprises in China still have to narrow their scope or stop production to ensure safety against the pandemic. Meanwhile, the policy of Adapting to Covid-19 in Vietnam has created opportunities for export orders of Chinese enterprises to shift to Vietnam. Foreseeing this opportunity, since the end of last year, the company has actively recruited more workers and increased bonuses to retain old workers.
According to the business community, besides objectively positive developments, the biggest advantage for the new year is the support package of VND350 trillion, which has just been approved by the National Assembly. It is the timely support, creating a new driving force and new confidence for the domestic economy to make a breakthrough and develop. This package will help enterprises like a lifebuoy. In addition, several law amendment policies and open solutions have facilitated beneficiaries to access faster and more conveniently. Specifically, the policy to support house rental for workers - an unprecedented one - will be an important basis for businesses to retain, as well as attract workers back to the city to work. Thanks to that, enterprises will make better use of the opportunity to receive export orders that are massively pouring into Vietnam.
However, the current biggest concern of many enterprises is the source of production materials. Mr. Pham Xuan Hong said that 60 percent of raw materials of all industries must be imported. However, raw material prices jumped sharply by 30-50 percent, and logistics costs also rose 5-7 times higher, so it would be difficult for domestic enterprises not to increase the selling prices of their products. Therefore, along with the initiative of enterprises in negotiations, the authorities need to accelerate the ability to increase the localization rate of raw materials. Only in this way can businesses maintain a stable market share in the domestic market and expand in the export market.
Along with the excitement in the production atmosphere at the beginning of the new year, Chairman of the Board of Directors of Saigon 3 Garment Joint Stock Company Pham Xuan Hong said that the company had successfully signed two garment orders with a value of over $7 million to export to Japan and the US.
In the field of food and foodstuff processing, General Director of Saigon Seafood Joint Stock Company Truong Tien Dung confided that 2021 was an eventful year. However, overcoming those difficulties, agricultural product processing enterprises were on the way to recovery when receiving several good signals from export markets. Recently, for the first time, the company received an order to supply processed frog products to the Korean market. The feedback from its partner is positive. It will open new opportunities for this food product and many other agricultural products in the coming time.
Assessing the encouraging signs of export at the beginning of the year, economic analysts said that Vietnam has a basis to regain the economic growth milestone of 5.6 percent instead of 2.1 percent in 2021. The remaining problem is how domestic enterprises will increase their production scale to proactively take advantage of opportunities when export orders are shifting heavily into Vietnam.
Regarding this issue, Mr. Tran Viet Anh said that China - the largest supply market - is still implementing the Zero Covid-19 policy. Therefore, enterprises in China still have to narrow their scope or stop production to ensure safety against the pandemic. Meanwhile, the policy of Adapting to Covid-19 in Vietnam has created opportunities for export orders of Chinese enterprises to shift to Vietnam. Foreseeing this opportunity, since the end of last year, the company has actively recruited more workers and increased bonuses to retain old workers.
According to the business community, besides objectively positive developments, the biggest advantage for the new year is the support package of VND350 trillion, which has just been approved by the National Assembly. It is the timely support, creating a new driving force and new confidence for the domestic economy to make a breakthrough and develop. This package will help enterprises like a lifebuoy. In addition, several law amendment policies and open solutions have facilitated beneficiaries to access faster and more conveniently. Specifically, the policy to support house rental for workers - an unprecedented one - will be an important basis for businesses to retain, as well as attract workers back to the city to work. Thanks to that, enterprises will make better use of the opportunity to receive export orders that are massively pouring into Vietnam.
However, the current biggest concern of many enterprises is the source of production materials. Mr. Pham Xuan Hong said that 60 percent of raw materials of all industries must be imported. However, raw material prices jumped sharply by 30-50 percent, and logistics costs also rose 5-7 times higher, so it would be difficult for domestic enterprises not to increase the selling prices of their products. Therefore, along with the initiative of enterprises in negotiations, the authorities need to accelerate the ability to increase the localization rate of raw materials. Only in this way can businesses maintain a stable market share in the domestic market and expand in the export market.
