According to many companies, thanks to the effect of the signed trade agreements, the production and export have been growing smoothly and have reached and impressive numbers.
Foods and candy at Tet
For the confectionery and food companies, the end of the year is their main production season and is the golden opportunity to boost sales and profits.
At Bibica Joint Stock Company (Bibica), from November 15th, they have officially launched the Tet 2019 production season with with the message "Essence of Vietnamese Tet". Bibica’s representative told us that this New Year, the company will launch 65 kinds of confectionery with the total amount planned to be of 3,000 tons, an increase by 20% compared to the same period last year.
Manufacture export garments at Dong Nai Garment Corporation.
According to Bibica, with the participation of many large foreign companies in the confectionery industry, the domestic confectionery market will be bustling with more choices for consumers. According to prediction, the prices for confectionaries this year’s Tet shall change quite a lot but Bibica still retains the same price for more than 95% of their products, the remaining products would only have their prices increased slightly by 3 -5%. "We have a wide distribution network at over 100,000 locations and 3,000 large and small supermarkets nationwide. Bibica is one of the leading companies in the Vietnamese confectionery industry. With 21 consecutive years voted to be high quality Vietnamese goods, we shall continue striving to serve our customers the best we can.” Representative of Bibica said.
Same things are happening with other items, many companies have planned to stock goods for the last months of the year. CP Vietnam Corporation has prepared sufficient stock to supply the market, especially during the peak period before Lunar New Year in 2019. In addition, according to the representative of the CP Vietnam Corporation, the Company still reserves about 20% in case of local shortage due to disease or other reasons.
As for beverages, fruit juice, Thien Trieu An Production and Commercial Co., Ltd (Bien Hoa city) is also ramping up its production to increase output by about 20% compared to normal months. Representatives of the company said that they would continue with the local Trade Promotion Agency of the province to participate in fairs and exhibitions to promote its fruit juice brand “Ever” originated from Dong Nai.
Garment and Textile benefitting from favorable conditions
Garment and Textile is one of the industries predicted to be struggling by the effects of the US-China trade war. However, according to the companies, this business sector is having an easier time. According to Mr. Vo Thanh Tuan, Director of An Phu Thinh Joint Stock Company (Long Thanh District), the current advantage of the garment and textile industry mainly originates from the impact of the upcoming free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership - CPTPP and Vietnam-EU Free Trade Agreement (EVFTA).
At An Phu Thinh Joint Stock Company, by the end of October 2018, the production of gloves increased by 160% compared to 2017. In the last two months of this year, the company concentrates production to reach the yearly output. double the previous year. The company is also planning to invest 60 million pairs of gloves in 2019.
Over the past few years, due to its boldness in approaching the latest technology in the world via investing in 800 IGK glove knitting machines and automatic overlock machines, productivity of the production line in An Phu Thinh Joint Stock Company has tripled compared to the old generation of machine. Therefore, the company could reduce the production costs and improved product quality to meet export standards of Japan, Australia and the US ... "Currently, the demand from the international market is very high, especially is Japan so the company must accelerate in raising production capacity. We are open to cooperation with other local garment factories in the province in processing products for us to reach the production plan of making 60 million pairs of gloves in the next year, "said Mr. Vo Thanh Tuan, director of An Phu Thinh Joint Stock Company.
In the same fashion, for Dong Nai Garment Corporation (Donagamex) - a big company in the province's garment industry – its production value is anticipated to increase by 10% in 2018 compared to 2017, the turnover would reach about 1,100 billion VND. In terms of export markets, Japan, the US, Europe and South Korea are its main markets, with Japan accounting for 45% of Donagamex's exported products. According to managers of the company, the export situation of company is relatively favorable due to the effect from the trade agreements that Vietnam has signed with the related countries. Donagamex also has orders until the end of quarter I-2019 and is currently in the process of signing contracts up to October next year. "The export market is very favorable, but the company encounters a problem which is the shortage in labor personnel. The labor force has decreased by 10% compared to 2017. In order to compensate for this shortage, the company has invested in some modern and automatic production lines, thus productivity still improves nonetheless. The income of the workers has also been increased accordingly. This is also a condition for the company to boldly restructure and sustainably develop in the upcoming years," General Director of Donagamex Mr. Bui The Kich said.
04 Items that are worth over $ 1 Billion
According to the Department of Industry and Trade, by the end of October, the export activities of the entire province reached 15.2 billion in turnover, an increase of 11.3% over the same period last year. Among the items there were 4 that were worth over $ 1 billion in export value. Specifically, footwear reached over 3 billion USD, increased by about 9.5% over the same period last year. Textiles and garments reached 1.6 billion USD, increased by about 8.3% over the same period. Fiber, yarns were estimated at 1.3 billion USD, increased by about 14.8% over the same period last year. Wood and wood products were estimated at 1.1 billion USD, up about 4.8% over the same period last year.