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 Entering the new year 2021, many exporting enterprises have expanded their production scale to satisfy new orders, and at the same time expect to exploit the market from new export partners.

Production activities at Gre Apha Electronic Company (VSIP 2A industrial park).

 To expand production

The COVID-19 pandemic broke the supply chain, greatly affected production and business activities of enterprises. However, there were some enterprises that took advantage of the opportunity to exceed the 2020 business targets, especially FDI enterprises. Many FDI enterprises in fields of computers, electronics, components, machinery and equipment, spare parts, footwear etc. have recovered quite quickly. By beginning of December 2020, some FDI enterprises increased their revenue by 10-30%, even 100% compared to the same period previous year.

In 2020, White Feathers Internationa Company's revenue doubled compared to 2019, despite difficulties caused by the pandemic. Lim Chiew Seng, Director of the company, said that to gain export orders during this period required many factors. Vietnam's good control over the pandemic as well as brand reputation for international customers is a strength. In the coming time, the company will expand production and business scale. In particular, they focus on operating new factories, speeding up order processing for export markets. In order to timely meet the growing demand of customers, the company invested in a new factory. This investment will help to expand production line, expand stockpile of raw materials, timely meet the growth momentum. Currently the company's major markets are the US and Europe.

Representative of Gre Apha Electronic Company (VSIP 2A) said that revenue in 2020 increased by about 20% over the same period. In 2021, the parent company decided to transfer about 20% of orders from countries to factories in Binh Duong. Li Li, Director of the company, said that he was currently recruiting more workers to meet the demand of orders. They also expect that in the near future the production plant in Binh Duong would be expanded to meet the need  for relocating the parent company's factories to many neighboring countries.

Although they did not achieve impressive growth rates like FDI sector, many domestic enterprise found consumer markets, new products, new ways themselves to maintain and stabilize production, waiting for new opportunities to wake up after the pandemic. Hiep Long Company (Binh Chuan ward, Thuan An City) received many new orders, estimated to complete 25% of the whole 2021 target. Huynh Quang Thanh, General Director of the company, said that although the number of wood orders had flourished, the global value chain was affected by many factors causing market fluctuations. This was the problem that confronts enterprises, especially SMEs. A good news is that by the end of 2020, the company maintained growth of over 10% thanks to small orders. Mr. Huynh added that in the period of rapid transformation, not only the COVID-19 but also many other issues in the global market, the movement of supply chains is considered as the key to overcome challenges and seize investment, production and business opportunities in the future. Therefore, enterprises need to meet market demands for core competencies and new technology.

Prospects

Regarding the development orientation, Mr. Huynh said that currently the fight against the pandemic in Vietnam was very effective, so prospects and opportunities are quite clear. However, he suggested that banking industry need to have a more open policy for small and medium-sized enterprises to access loans, because their collateral is inadequate and its value is not high. To overcome this difficult time, businesses need to continue looking for new markets outside the local traditional market. Currently, enterprises are increasing trade promotion and working with partners to sign new contracts, diversifying the source of input materials.

It is expected that after the pandemic, the world economy would recover and Vietnam is considered as a potential for multinational corporations to shift their global supply chains to reduce dependence on some countries. In 2020, many countries in the world grew negatively, but Vietnam still maintained positive growth, controlled well the epidemic, reducing many losses for businesses. Therefore, Vietnam will be a country with many advantages for foreign enterprises to sign product supply contracts, cooperate to expand production and business investment. In particular, Binh Duong will be one of the attractive destinations.

Kazuhito Yamamoto, General Director of Taisei Bijutsu Printing Company (Ben Cat town) said that Binh Duong controlled the COVID-19 quite well and provincial economy still maintained positive growth, hence foreign customers are very confident. According to the forecast, when the pandemic is controlled, travel between countries is convenient, businesses in Binh Duong would continue to receive more orders. Therefore, enterprises in Binh Duong should be prepared in advance to sign cooperation.

Seeing the success of enterprises is the success of the province, Nguyen Hoang Thao, Deputy Secretary of Provincial Party Committee, Chairman of Provincial People's Committee, affirmed that departments, branches and municipalities implement policies to assist businesses, promptly solve business difficulties and problems to stabilize production and business. Binh Duong always creates favorable conditions, reforms administrative procedures so that enterprises could be assured of an opening investment and production. In the current situation, along with the innovation, the expansion of production scale, improvement of product quality, is really the main element for socio-economic development of the province. Enterprises need to really focus on ensuring the health safety of workers according to the guidance of health authorities on COVID-19 prevention and control, especially to take responsibility for strengthening the inspection and making medical declaration for foreign workers and experts coming to work in Binh Duong. Mr. Nguyen also asked the business community to continue uniting, turning towards the goal of raising incomes for workers, fostering the provincial economy in a modern and sustainable way.

 Reported by Tieu My - Translated by Ngoc Huynh