Many foreign-invested enterprises in Binh Duong Province, southern Vietnam have expanded their investment with long-term commitments, despite gloomy trade activities in the region.

They expect to quickly overcome the hardship to resume production and recruit more laborers.

Switzerland’s Cicor Group on Monday inaugurated a factory of electronic and electromechanical products for export at Vietnam-Singapore Industrial Park 1 (VSIP 1) in Binh Duong Province, a neighbor of Ho Chi Minh City.

Cicor raised its investment in Binh Duong to US$15 million.

Earlier, a representative of Polytex Far Eastern Vietnam Co. Ltd. at Bau Bang Industrial Park in Binh Duong said the company had disbursed over $1.37 billion in the province and would invest an additional $250 million next quarter to become the largest foreign direct investor in Binh Duong as it has seen new opportunities there.

Polytex Far Eastern Vietnam is also among the firms with the highest import-export value in Binh Duong.

Yeh Ming Yuh, CEO of the company, said the firm needs support in the appraisal, approval, and development of a power transformer station and a solar power plant project to take the initiative in power supply while protecting the environment.

Many enterprises have plans to recruit more laborers, according to Nguyen Kim Loan, chairwoman of the Binh Duong Labor Union.

For example, Japanese-invested Yazaki EDS Vietnam Co. Ltd. has suggested the union help it recruit an additional 800 workers, and a sports shoe producer in Thuan An City wants to employ an extra 1,000 laborers by the end of the year.

Chairman of the Binh Duong People’s Committee Vo Van Minh said local authorities are willing to accompany and listen to enterprises’ proposals to jointly overcome difficulties.

The province will take the initiative in removing obstacles to power supply for production, project approval, and certification of firefighting systems, and propose central agencies to promptly remove difficulties of enterprises.

Once factories in Binh Duong operate stably, they will create sustainable revenue for the budget and means of subsistence for laborers from many localities, Minh said.

Many enterprises in the province are encountering multiple difficulties due to a shortage of orders and the impact of inflation in other markets, said Nguyen Thanh Binh, deputy head of the provincial Division of Customs.

In the year to June 15, Binh Duong’s tax revenue totaled VND7.1 trillion ($301 million), falling 28 percent year on year.

The province has met only over 35 percent of its tax revenue target of VND20.2 trillion ($857 million) this year.

Import-export data reflects the health of enterprises. The local wood sector has also faced a crisis since last year, said Nguyen Liem, chairman of the Binh Duong Furniture Association.

The demand in Vietnam’s key import markets, including the U.S. and Europe, has fallen, causing enterprises to be subject to a decline of orders.

In addition, military conflicts and diseases have disrupted supply chains, resulting in a shortage of materials, a surge in production costs, and a reduction in international competition.

Associations hope the situation will be better by the end of this quarter but difficulties remain now, according to Pham Van Tuyen, deputy director of the provincial Department of Labor, War Invalids, and Social Affairs.

Members of textile, garment, and footwear associations reported that their orders have plunged over 40 percent. Many of them have temporarily shut down and laid off employees.

The lack of orders has caused tens of thousands of workers to leave Binh Duong. Many boarding houses in Tan Uyen and Thuan An Cities as well as Ben Cat Town are currently deserted.

Tham, a resident of Chanh Phu Hoa Ward in Ben Cat Town, said her four-room boarding house was always occupied earlier but only two of the rooms have been rented since late last year.

Dong Nai, Ba Ria-Vung Tau report declining economic indicators

The export revenue of Dong Nai Province, a neighbor of Binh Duong, decreased 20.4 percent in the first five months of this year against the same period last year to reach $8.52 billion, Tran Quoc Tuan, head of the Dong Nai Statistics Office, said on Monday.

Many products saw a plunge in export earnings, including wood, footwear, textiles and garments, and machines, equipment and tools, by 40, 13.38, 12.7, and 11.6 percent, respectively.

The province’s import turnover also plummeted 23.6 percent to $6.2 billion.

In the five-month period, Dong Nai recorded a trade surplus of $2.2 billion.

Exports fell as the demand in large markets, such as the U.S., European Union, Japan, and South Korea, tumbled, Tuan explained.

Meanwhile, neighboring Ba Ria-Vung Tau Province reported total budget revenue at some VND44.1 trillion ($1.9 billion) in the first half of the year, down 20.9 percent year on year, according to a report by the provincial People’s Committee.

Of the total, the revenue from oil, import-export, and domestic production and business activities in January-June this year fell 21.3, 23.3, and 19.5 percent, respectively, over the same period last year.

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