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Samsung Vietnam’s export decline cited as cause of Vietnamese industrial hub’s negative growth

Samsung Vietnam’s export decline cited as cause of Vietnamese industrial hub’s negative growth

Thursday, November 30, 2023, 11:41 GMT+7
Samsung Vietnam’s export decline cited as cause of Vietnamese industrial hub’s negative growth
Samsung Vietnam’s exports have made significant contributions to the GRDP growth of Bac Ninh Province, northern Vietnam in recent years. Photo: Q.P / Tuoi Tre

The gross regional domestic product (GRDP) growth of Bac Ninh Province, northern Vietnam fell by 6.18 percent compared to last year, likely due to Samsung Vietnam’s export numbers falling during the same period, according to experts.

Bac Ninh’s GRDP hit just VND134.81 trillion (US$5.5 billion) in 2023, a sharp fall from last year.

The decline is a stark contrast from the area's economic boom in recent years, according to Nguyen Huong Giang, chairwoman of the provincial administration.

Bac Ninh reported a GRDP growth of 19.12 percent in 2017, 10.6 percent in 2018, 1.1 percent in 2019, 1.36 percent in 2020, 6.9 percent in 2021; and 7.39 percent last year.

Earlier this year, the northern province set its GRDP growth target at 6.5-7 percent for 2023.

Speaking to Tuoi Tre (Youth) newspaper, a representative of the Vietnam General Statistics Office (GSO) attributed the negative growth rate to Samsung Vietnam’s sharp decline in exports in 2023.

Samsung Vietnam currently operates a 110-hectare mobile phone manufacturing plant in Bac Ninh’s Yen Phong 1 Industrial Park.

The GSO representative added that five or six Vietnamese provinces are likely to record negative growth rates in 2023.

Statistics released by the GSO indicated that Vietnam exported roughly $44.02 billion worth of phones and phone parts in the year to October, equivalent to some 87 percent of the 2022 figure, with most of those items having been shipped by Samsung Vietnam.

According to a report recently released by the administration of Bac Ninh, in 2023, the GDP per capita in the province is an estimated VND70 million ($2,890); some VND65 trillion ($2.6 billion) was allocated to develop projects in the province; and it attracted $1.4 billion of new foreign direct investment, all exceeding its targets for this year.

Meanwhile, the province could be unable to fulfill some of its targets.

For instance, its import-export turnover and state budget revenue could reach an estimated $73.6 billion and VND27.9 trillion ($1.1 billion), lower than the respective targets of $93.2 billion and VND31.6 trillion ($1.3 billion).

The provincial administration attributed the negative growth to domestic and global uncertainties, including difficulties facing the real estate and electronics industries.

Additionally, the province’s ability to monitor and forecast socio-economic developments and the cooperation among departments, agencies, and localities remain ineffective, the provincial administration explained.

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Hong Ngan - Bao Ngoc / Tuoi Tre News

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