Like other businesses across Viet Nam, those in Da Nang are gearing up for recovery for the rest of 2020 after many months of stagnation triggered by the adverse impacts by the coronavirus outbreak and hash weather conditions.

In the photo are workers at the 29 March Textiles and Garments JSC

In less than 3 months, exactly from August till mid-October, given its tremendous efforts and highly feasible plans, the Da Nang-based Huong Que Co., Ltd. has restored more than 70% of export market shares in Europe and some countries in South America. This encouraging result has made a more than 30% contribution to the company’s total revenue.

The year’s total revenue will not fall into the negative growth, and maybe, it will record a slight increase if there is no new wave of coronavirus reported in Viet Nam from now to the year- end, said Huong Que Director Nguyen Xuan Son.

Previously, in the teeth of the pandemic, the company took the initiative to take appropriate solutions as it can in a bid to prevent the pandemic-triggered production disruptions and ensure the smooth running of on-time payroll policies. At that time, it boldly switched to producing face masks for export to European countries.

Meanwhile, a number of large seafood exporters in Da Nang have grasped the opportunity to increase their market shares in Europe, the U.S., Japan and South Korea in light of the supply from some countries, Thailand for instance, against which Viet Nam has fierce competition has been interrupted due to the pandemic.

Chairman of the Board of Directors of the Thuan Phuoc Fisheries Joint Stock Company Tran Van Linh analysed: “Covid-19 caused a severe global supply chain disruption with some manufacturing sectors of many countries whereas the consumption demand, for seafood products for instance, still has remained high. Based this fact, we have accelerated the production of our products in order to meet our customer demand”. Thuan Phuoc’s revenue recorded this year is highly expected to be up by 5 - 7% against last year.

Instead of targeting the production of vestons for exporting outside Viet Nam amidst low numbers of orders due to the global complicated pandemic, the 29-3 Textiles and Garments Joint Stock Company is now on full course to boost the making of sports clothing for export to France and some other European countries, and medical protective gears for consumption in the US market from now until the year-end. Thanks to its appropriate business strategies, the company has remained on its strong feet in maintaining stable production activities and the payrolls for its staff.

In reality, not only does the gradual recovery of the export market and supply chains prompt financially strong exporters in Da Nang to quickly boost production and proactively develop appropriate plans for sustainable operation, but it also paves the way for many small and micro enterprises to make a rebound after many months of diminishing orders and revenue.

Since the start of this year, total value of Da Nang goods exports is likely to reach 1,405 billion US$, down by 5.2% when compared with the same period last year. Nevertheless, a slight increase is observed in some key export products, such as textiles, seafood products, handicrafts, wooden and finished rubber products, electrical equipment and electronic products.

Of special note, domestic businesses continued to assert their role as the driver of the city's export growth, shortening the gap with FDI ones operating here. The 11-month export turnover generated by the domestic productive sector hit a total of 641.2 million USD, only a bit lower than that of the FDI sector with 764 million US$.

According to projections by local economic experts, during the rest of this year, Da Nang exports will achieve a higher growth rate than recorded in the first months of this year thanks to a growing demand for year-end consumption, provided that the coronavirus is well controlled in such Da Nang’s main export markets as the U.S.A and EU countries.

By KHANH HOA – Translated by A.T