Despite being heavily affected by the complex development of the COVID-19 pandemic in the world , in the first 4 months of 2021, Da Nang exports enjoyed an impressive growth rate of 10.4% over the same period last year. In which , exports by domestic businesess increased by 10.2% over the same period while foreign-invested enterprises posted  a rise of 10.6% in exports.

Exports by domestic businesess in the first 4 months of 2021 saw positive signs. Picture is taken at Central Region Export Joint Stock Company. Photo: KHANH HOA

Double-digit growth

According to a report of the Da Nang Department of Industry and Trade, in the first 4 months of 2021, the value of exports from Da Nang amounted to an estimated USD 514 million, up 10.4% over the same period in 2020.

In detail, textiles and garments contributed an estimated USD 143 million to the Da Nang economy, up 10.4%, seafoods with an estimated USD 63 million, up 10.5%, handicrafts and wood products with an estimated USD 6.1 million, up 10%, children's toys with an estimated USD 26.6 million, up 10.4%, finished rubber products with an estimated USD 21.7 million, up 14%, motors, electrical equipment and electronic products with an estimated USD181 million, up 10.4%.

Exports from domestic businesses in the first 4 months of 2021 were estimated at USD 235.3 million, up 10.2% over the same period in 2020. Meanwhile, the value of exports from FDI businesses climbed by to 10.6% to hit an estimated USD 278.7 million.

According to the analysis from the municipal Department of Industry and Trade, textiles, garments, seafoods, handicrafts, wood products, and finished rubber products are the top export commodities of Da Nang.

The positive results have been attributed to great efforts of exporters in Da Nang amid the coronavirus crisis, and they have played a vital role in driving the city’s economy growth.
The textile and clothing industry in Da Nang faced many difficulties in 2020, and the sector has returned to growth since the first quarter of 2021 thanks to its increasing orders.

Well-known companies in this industry such as the Hoa Tho Textile and Garment Joint Stock Corporation, the March 29 Textile - Garment Joint Stock Company, experienced impressive growth in revenue from domestic sales and exports.

Da Nang Rubber Joint Stock Company has been among the largest payers of corporate taxes in the city for years. In recent months, exports from this compay continued to recover. The company earned about VND 800 billion in net revenue in the first quarter of 2021, while its pre-tax profit surpassed 2021 target by about VND 66 billion, a rise of 41% over the same period in 2020.

The company targets to earn VND 4,130 billion in revenue, of which, pre-tax profit is nearly VND 474 billion, up 13.3% and 47.8% respectively compared to 2020.

Especially, shrimp products are one of the top export commodities of Da Nang. The city's largest seafood companies such as Thuan Phuoc Fishery and Trade Joint Stock Company and Central Region Seafood Joint Stock Company saw positive signals in revenue in the first quarter of 2021.

Particularly, Thuan Phuoc Seafood and Trade Joint Stock Company was named among the top 10 seafood companies in Viet Nam with the highest export turnover in February 2021 by the Vietnam Association of Seafood Exporters and Producers (VASEP).

According to Mr. Truong Phi Cuong, Deputy Director General of Vina Da Nang Joint Stock Company, the exporting market for timber and wood products is quite stable, and exports from his company mainly to the US and European countries in the first 4 months of the year increased between 6% and 8%. However, the price of input materials is currently on an upward trend, which will result in an increase in production costs.

Currently, textiles, seafood products, handicrafts, finished rubber products are the top export commodities of Da Nang. Picture is taken at Hoa Tho Textile and Garment Corporation. Photo: KHANH HOA

Tackling the pandemic and keeping production stable

Ms. Le Thi Kim Phuong, Director of the Da Nang Department of Industry and Trade, highlighted huge efforts made by domestic businesses to increase their contributions to the Da Nang economy, gradually narrowing the gap between them and FDI enterprises.

During the 2017-2020 period, goods from Da Nang businesses have been exported to more than 120 countries and territories  worldwide, accounting for about 65%-70% of the city's total export turnover.  Their goods have conquered such overseas markets as the EU, the United States, and Japan.

Mr. Nguyen Tien Quang, Director of the Vietnam Chamber of Commerce and Industry (VCCI) - Da Nang Branch said that Da Nang businesses have made great efforts in driving their innovations, and helping their products such as rubber, textiles, seafood access international markets which are under competitive pressure from exporters in China, Japan, Korea, Thailand, and more.

Besides, the Da Nang government has issued supporting policies on trade promotion in a large scale and methodical manner. Free trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and others have gradually taken effect. They have brought benefits to Vietnamese exporters, including those in Da Nang.

Da Nang businesses are striving to realise their dual goals of tightening the measures to control COVID-19, and proactively taking steps to achieve their growth target in 2021.

Reporting by KHANH HOA – Translating by H.L