City's exports keep flourishing until year-end

By DA NANG Today / DA NANG Today
October 23, 2019, 16:46 [GMT+7]

After the first two quarters of the year showing signs of slowdown in Da Nang’s exports, the 3rd quarter saw impressive growth, thereby creating a positive signal for the progress of manufacturing enterprises in the remaining months.

City’s exports keep flourishing until year-end
The city’s export turnover, especially in the key sectors, saw many prosperous results in the January-September period. In the photo are workers at the 29-3 Textiles and Garments JSC.

According to the latest figures released by the municipal Department of Industry and Trade, the city’s commodity export turnover recorded between January and September was estimated at 1,286 million US$, up 6% versus the year-ago period.

Many positive changes have been seen in the export of the key items, for instance, textile and apparel export turnover recording 312.5 million US$, up about 6.3% over the same period last year, and seafood products generating 145 million US$, up about 5%.

In the 3rd quarter, the Da Nang Rubber JSC (DRC) saw positive changes in terms of both revenue and profit as its export activities were much better than previous months.

In detail, DRC’s rubber exports to its main consumer markets, including Brazil, the USA, Malaysia and India, have grown well. According to its recent financial report, in the 3rd quarter, the company’s net revenue reached more than 970 billion VND, up 9% against the same period last year.

The 3rd quarter’s gross profit of DRC also increased sharply, recording a rise of more than 49% against the same period last year, equivalent to more than 162 billion VND.

In a similar vein, the seafood industry also gained positive results in the review period, thereby accelerating the progress for the last months of the year.

Tran Van Linh, the Chairman of Thuan Phuoc Seafood and Trading Corporation, said, between January and September, the company’s export output exceeded by 14 - 15% compared to the year-ago period. 

The company is now accelerating its production activities to meet the high demand for seafood products in the last 3 months of the year with such forthcoming special occasions as Christmas, New Year, and Tet.

It is predicted that, by the end of this year, the company’s export turnover will have climbed by 12 - 20%, with sales volume exceeding by 10 - 12%, and revenue increasing by 4 - 5% compared to 2018’s figures.

In his perspectives, Nguyen Ha Bac, the Acting Deputy Director of the municipal Department of Industry and Trade, remarked, the encouraging results from the city’s export activities were mainly attributed to the good impacts of some free trade agreements. Notable are the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – CPTPP), and the EU-Viet Nam Free Trade Agreement (EVFTA), which is scheduled to come into effect late this year or early next year.

These much-awaited agreements are much likely to bring great opportunities and stimulate businesses to boost their production activities.

In particular, the city’s textile industry is now grasping opportunities for the sake of its development, expanding export markets and maintaining a stable growth.

Bustling working ambiance is reported at the 29-3 Textiles and Garments JSC.
Bustling working ambiance is reported at the 29-3 Textiles and Garments JSC.

As for the seafood industry, in August, the US Department of Commerce (DOC) announced the preliminary results of the 13th period of review (POR 13), exempting Vietnamese shrimp imports from antidumping tariffs. The antidumping duty is the best recorded in 13 years, which also demonstrates that Vietnamese exporters have not dumped shrimp on the U.S. market.

Accordingly, a total of 31 Vietnamese seafood exporters are eligible to enjoy a 0% antidumping tax rate, 2 of them are based in Da Nang, namely the Thuan Phuoc Seafood and Trading Corporation and Frozen Enterprise No 32.

Meanwhile, in the face of the USA’s imposition of tariffs on Chinese tires and rubber products, JSC's rubber products have fought it easier to penetrate into overseas markets, being able to compete with Chinese-made ones.

From now till late this year, the city’s exporters are focusing on speeding up their production activities. However, main export industries, especially such labour-intensive industries as garment and assembly, are facing some difficulties including a shortage of labourers, production premises, and capital.

Tran Van Linh, the Chairman of Thuan Phuoc Seafood and Trading Corporation, said, what made his company most worried is the scarcity of raw materials as well as the difficulty in recruiting a large number of employees.

Meanwhile, unpredictable developments from the USA-China trade war has also promoted China, one of the Vietnamese fishery industry’s large markets, to switch from unofficial cross-border trade with the purchase of large quantities as previously to official channels which require stricter technical regulations regarding the origin of goods, raw material growing areas and other issues. Actually, these strict requirements have hindered the export of many Vietnamese items, including aquatic products.