The southern province of Binh Duong raked in about fivebillion USD in export revenue in the first five months of this year, ayear-on-year rise of 16 percent.
Of the figure, thedomestic sector earned 820 million USD, an increase of 5.2 percent overthe same period last year, while FDI enterprises contributed fourbillion USD, up 18.6 percent. The result is an 812 million USD tradesurplus in five months.
According to Binh DuongAssociation of Exporters and Importers President Phan Van Xo, theresults are attributable to local enterprises’ right choice of focusingon the low-end market in the context of economic difficulties.
He said 156 member companies of the association, particularly thoseoperating in garments and textiles and footwear, have received ordersthat will see them through the whole year.
As one of15 export staples of Binh Duong, footwear has proven its vitality inthe market. Notably, Thai Binh Shoes Company exported over five millionpairs of shoes in the first five months of this year. Its target is toproduce 14-16 million pairs in 2013, ensuring income for nearly 17,000workers.
According to Le Hong Phoa, President ofthe Binh Duong Garment and Textile Association, although the first fivemonths of this year have been good, with an export revenue of about 600million USD (a year-on-year rise of 7.3 percent), the sector isencountering difficulties in sourcing materials, leading to lowerprofit.
Phan Van Xo said along with the negativeimpacts caused by the economic situation, Binh Duong exporters arechallenged by technical barriers, especially since Vietnam joinedthe World Trade Organisation.
He pointed out twomajor reasons behind the situation, a lack of an adequate legalframework and domestic enterprises’ limitations in scale, finance andtechnology.
According to Xo, FDI businesses, withtheir advantage in scale, capital, technology and customers, are leavingdomestic firms far behind.
He suggested that moreinvestment in infrastructure and favourable conditions are needed fordomestic exporters to narrow the gap between them and their FDIcompetitors.
Binh Duong’s target for 2013 is an export growth of over 20 percent and earnings between 15-16 billion USD.-VNA