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FDI enterprises pour more capital into Vietnam

Date: 7/24/2023 9:51:53 AM

Although import and export activities in the ’industrial capital’ of the Southeast are still facing many difficulties, there are still positive signs when many factories expand investment with long-term commitment.

Not only businesses that expand their scale need to recruit more workers, some businesses have also started recruiting workers again.

Many businesses hope that the economy will soon overcome the difficult period so that they can restart production and recruit more workers.

Businesses face difficulties, tax revenue decreases

Mr. Nguyen Thanh Binh - Deputy Director of Binh Duong Customs Department - said that through a survey at many businesses in the area, most businesses are still facing many difficulties due to lack of orders, effects of war, inflation in the world...

This is the first time in many years that the income from import and export in Binh Duong has encountered so many challenges.

Since the beginning of the year, the number of businesses going to the customs office in Binh Duong to carry out procedures has decreased in both the number of declarations and the value. Preliminary statistics from the beginning of the year to June 15, customs revenue in Binh Duong only reached VND 7,125 billion, down more than 28% compared to the previous year.

Although half of the way has been completed, compared to the estimated revenue of 20,200 billion VND in 2023, so far, it has only reached more than 35%...

The decline in import and export figures also reflects the "health" of the business community. Mr. Nguyen Liem - Chairman of Binh Duong Woodworking Association - said that the domestic wood industry has encountered a "double crisis" lasting from last year to now.

Consumption demand in major export markets such as the US, Europe... all decreased, causing businesses not to have export orders.

In addition, the supply chain was broken due to armed conflicts, epidemics, etc., causing enterprises to lack raw materials, increase production costs, and reduce international competitiveness.

Mr. Pham Van Tuyen, deputy director of the Department of Labor, War Invalids and Social Affairs of Binh Duong province, said that through discussions with associations, they all hope that by the end of the second quarter of 2023, orders will be better, orders will return, but now at the end of June, the situation is still very difficult.

Businesses in the textile and apparel association, the leather and footwear association, etc., all reported that orders were reduced by more than 40%. Many businesses had to temporarily close and lay off workers.

Many businesses raise capital and recruit workers

Although the overall economic picture is quite bleak, businesses all hope that this period will soon pass, many businesses take advantage of this time to restructure and plan development for a longer period...

On June 26, Cicor Group (Switzerland) inaugurated a factory in VSIP 1 Industrial Park (Binh Duong province) producing electronic and electromechanical products and semi-finished products for export. With this capital increase, this group has raised its investment capital in Binh Duong to 15 million USD.

Previously, a representative of Polytex Far Eastern VN Co., Ltd (Bau Bang Industrial Park) - which has disbursed more than 1.37 billion USD - said that although the general economic situation is still difficult, it still sees new opportunities, so in the third quarter of this year it will invest another 250 million USD, becoming the largest FDI enterprise in Binh Duong province .

Polytex Far Eastern Vietnam is also one of the enterprises with the largest value in carrying out import and export procedures in Binh Duong province.

In order for the business to expand, Mr. Yeh Ming Yuh - General Director of Polytex Far Eastern Vietnam - said that businesses need to help remove obstacles in the project approval process, support the investment procedures for substations and solar power plants, etc.

Ms. Nguyen Kim Loan - Chairman of the Binh Duong Provincial Confederation of Labor - said that in addition to businesses attracting more workers after expanding production, there were a number of other businesses that registered to recruit more workers.

For example, Yazaki EDS Vietnam Co., Ltd. (manufacturing car electrical wires...) has just sent an official letter asking for support to recruit nearly 800 more workers, a sports shoe manufacturing company in Thuan An city is expected to recruit about 1,000 more workers from now until the end of the year.

Let’s overcome difficulties together

Mr. Vo Van Minh - Chairman of Binh Duong Provincial People’s Committee - said that the local authorities are always ready to accompany and listen regularly to the opinions of businesses to overcome difficulties together.

With problems such as electricity planning for production, project approval, fire prevention and fighting appraisal, etc., local authorities will actively solve problems within their local authority, in addition, they will also propose central agencies to promptly remove and accompany businesses.

When factories in Binh Duong operate stably and develop, it will not only create a sustainable source of revenue for the budget but also create livelihoods for people from many provinces to work and live.

Room waiting for workers to return

The lack of orders from businesses caused tens of thousands of workers to leave Binh Duong temporarily to return to their hometowns to wait for jobs to return. Surveying many motels in Tan Uyen, Thuan An, and Ben Cat towns... showed that many motels were empty and had to be closed instead of the crowded and bustling scene before.

Ms Tham (Chanh Phu Hoa ward, Ben Cat town) said that in the past, the family’s inn consisting of 1 kiosk and 4 rooms was always full, but from the end of last year until now, only 2 rooms have been rented.

The economy is difficult, there are no jobs, so workers also have to cut their spending to the maximum. Everyone is waiting for the factory to have orders again so that the workers can have jobs, the workers’ dormitories are more crowded.

Dong Nai: import and export turnover decreased by more than 20%

On June 26, Mr. Tran Quoc Tuan - Director of Dong Nai Statistics Department - said that in the first 5 months of 2023, the export turnover of the locality was estimated at 8.52 billion USD, down 20.4% compared to the same period in 2022 (10.7 billion USD).

In which, many items fell sharply such as wood products down 40%, footwear down 13.38%, textiles down 12.7%, machinery, equipment and tools down 11.6%...

Dong Nai’s import turnover also dropped sharply, in the first five months of the year it was estimated at 6.2 billion USD, down 23.6% compared to the same period in 2022. Generally, in the first 5 months of the year, Dong Nai had a trade surplus of 2,245 billion USD, an average of 450 million USD/month.

According to Mr. Tuan, exports fell sharply due to the decrease in purchasing power in major markets such as the US, EU, Japan, and South Korea, leading to a decrease in the volume of orders.

A LOC

Ba Ria - Vung Tau: decrease in budget revenue

According to a report by the People’s Committee of Ba Ria - Vung Tau province, in the first 6 months of 2023, the total budget revenue of this locality is estimated at 44,123 billion VND, reaching 49.8% of the estimate, down 20.9% over the same period in 2022.

In which, revenue from oil and gas is estimated at 16,450 billion VND, down 21.3% over the same period. Import and export tax revenue is estimated at 8,542.5 billion VND, down 23.3% over the same period; domestic budget revenue decreased by 19.5% over the same period...

The deeply reduced import-export tax revenue is considered one of the major factors affecting the total budget revenue in Ba Ria - Vung Tau province.

In which, export turnover (except oil and gas) was estimated at more than 2.5 billion USD, down 12.01% over the same period last year, because most of the local key export products such as footwear, textiles, iron and steel... all faced difficulties, export turnover decreased deeply.

Import turnover also only reached $3.1 billion, down 6.45% over the same period, due to high prices of raw materials on the world market, a decline in domestic demand...

(Source:tuoitre.vn)