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Vietnamese enterprises regain growth momentum

Vietnamese enterprises regain growth momentum

Tuesday, September 26, 2023, 09:23 GMT+7
Vietnamese enterprises regain growth momentum
Workers of Binh Tay Food JSC in Tan Thuan Export Processing Zone in District 7, Ho Chi Minh City package products for export on September 23, 2023. Photo: Quang Dinh / Tuoi Tre

Many enterprises in Vietnam’s key export sectors are back on track as their orders have increased after a sharp decline several months ago, while certain tech firms have reported positive growth in international markets.

Nguyen Van Trung, a representative of a company specializing in exporting agricultural products in the south, said mango, longan, dragon fruit, and durian exports to Australia and the U.S. have surged thanks to better preservation technology.

The U.S. has resumed the import of Vietnam’s fresh coconuts, Trung added.

Chanh Thu Company in southern Ben Tre Province also ships pomelos stateside and recorded growth.

Vietnam will export this kind of fruit to China through official channels in the near future, according to Ngo Tuong Vy, CEO of Chanh Thu.

Meanwhile, Nguyen Dinh Tung, general director of Vina T&T Group, pinned high hopes on durian exports for the rest of the year.

“At present, only some 300 million Chinese consumers can access durians. With more reasonable prices, the sales of durian will soar,” Tung said.

However, he warned that Malaysia, Thailand, and Laos are enhancing durian cultivation and building their durian brands. Therefore, Vietnam has to improve its durian quality and develop its brands.

Vietnam annually exports a maximum of US$250 million worth of products to the U.S., which is well below the over $5 billion in the Southeast Asian country’s total vegetable and fruit exports, according to Dang Phuc Nguyen, secretary of the Vietnam Fruit and Vegetable Association.

If Vietnamese enterprises improve their preservation technology and invest heavier in processing, the export revenue from the U.S. market will jump further, Nguyen added.

The seafood sector has also recorded a positive recovery thanks to a climb in the shrimp export turnover in the past three months.

Shrimp shipments to the U.S. and China reached $76 million and $56 million last month, up 11 and 32 percent, respectively, year on year, according to the Vietnam Association of Seafood Exporters and Producers.

Seafood sales are improving and are expected to continue to grow, with Christmas and New Year approaching.

In the textile and garment sector, Sai Gon 3 Garment Joint Stock Company has secured enough orders until November, said Pham Xuan Hong, chairman of the company.

Pham Van Viet, vice-chairman of the Ho Chi Minh City Association of Garments, Textiles, Embroidery and Knitting, told Tuoi Tre (Youth) newspaper that the apparel sector had grown 20 percent over early this year.

“Many enterprises in the association have operated at 90-95 percent of their capacities. Workers are no longer laid off,” Viet added.

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, affirmed that the sector faced the biggest difficulties in June and July and the situation has brightened.

The sector set a target to earn export revenue of $39.5-40 billion this year, down $4 billion over last year, Giang informed.

The apparel sector will invest in green and modern technology, sustainable development, and automation to secure more orders from European, Japanese, and American markets, the association chairman noted.

As for the wood industry, Huynh Quang Thanh, general director of Hiep Long Fine Furniture Co. Ltd., said the company has enough orders for this year.

Inventories have fallen as the spending of consumers in key import markets have climbed. The wood sector will likely see a rise in orders late this year and early next month, Thanh said.

Workers process and package fried jackfruit at Vinamit JSC in Binh Duong Province, a neighbor of Ho Chi Minh City. Photo: Quang Dinh / Tuoi Tre

Workers process and package fried jackfruit at Vinamit JSC in Binh Duong Province, a neighbor of Ho Chi Minh City. Photo: Quang Dinh / Tuoi Tre

Tech firms expand markets

FPT Software, an arm of local tech giant FPT Group, recently established an office in Guadalajara, which is known as the Silicon Valley of Mexico.

The office, FPT Software’s fourth overseas base established over the past nine months, together with those in Costa Rica and Colombia, will pave the way for the company to expand its operations in Latin America.

With a presence in 28 countries and territories, FPT Software provides technological services for more than 1,000 companies, including nearly 100 companies listed in the Fortune Global 500, a ranking of the top 500 corporations worldwide as measured by revenue. 

An FPT representative said the move was a sprint to reach a revenue of $1 billion by the end of this year.

Meanwhile, Viettel High Technology Industries Corporation inked a strategic cooperation agreement with WB Group, the largest technological corporation in Poland, early this month to expand its international business.

Nguyen Vu Ha, general director of Viettel High Technology Industries Corporation, the win-win cooperation helps the two sides broaden their global business network, creating new opportunities in defense technology.

VNG, another major Vietnamese tech firm, also expects to achieve fruitful results from its Go Global strategy.

In particular, VNGGames has been recognized in the online game market in Southeast Asia.

The company has launched over 80 games at home and abroad.

Difficulties remain

Despite recovery signs, the number of orders this year has tumbled over last year, according to Truong Thi Chi Binh, vice-chairwoman of the Vietnam Association for Supporting Industries.

The global market may be positive in the remaining months of the year but no optimistic outlook has been confirmed for manufacturing and processing firms due to a decline in the global demand.

Meanwhile, Vietnamese manufacturing and processing enterprises can complete orders for separate accessories only, not complete products, and have found it hard to compete with Chinese rivals in prices.

Vietnam generated some $60.92 billion in import-export turnover last month, up 6.7 percent month on month, according to the Ministry of Industry and Trade.

However, the turnover in the January-August period reached $435.23 billion, down 13.1 percent over the same period last year, with exports falling 10 percent.

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Thanh Ha - Duc Thien - Nguyen Tri - Nhat Xuan / Tuoi Tre News


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