Many businesses operating in Da Nang have stepped up their own production and business activities and sought more export markets as soon as the first month of 2022. This year is expected to see positive economic signals when the supply chain is basically back on track and businesses are more proactive in adapting to the COVID-19 developments.

The production atmosphere has been bustling since the beginning of 2022 at many enterprises. Production activities are observed at the Daiwa Vietnam Co., Ltd. Photo: KHANH HOA

Fishery is one of the industries forecasted to thrive this year as key markets such as Europe, the U.S., Republic of Korea and Japan have recovered and recorded a growing demand, especially in January and February, 2022.

Besides, the supply of raw materials has recovered well over recent months, which is the good news to help businesses boldly increase their production capacity to complete old orders, as well as create momentum for the next quarters of the year as well.

Previously, according to a report released by the municipal Department of Industry and Trade, in 2021, seafood was one of the city’s key export industries to record an impressive growth rate, reaching US$202.5 million, up 11.9% as compared to 2020.

As revealed by Mr. Tran Van Linh, the Chairman of the Board of Directors of Thuan Phuoc Seafoods and Trading Corporation cum Chairman of the Da Nang Fisheries Association, in 2021, the company's revenue grew by 18% from 2020 and fulfilled 80% of the plan set out for 2021. Thanks to these encouraging results, the company gave employees a 13th month pay as a Tet bonus, equivalent to VND 9 - 10 million/worker.

Currently, a total of 1,800 Thuan Phuoc workers are speeding up the fulfillment of old orders which were initially planed to be completed in 2021 and at the same time, completing new ones set for this year.

This year is also witnessing Vietnamese seafood enterprises grasping many opportunities to boost production activities, aiming to achieve growth goals which are higher than those set in 2021 since the export development potential is still large, especially as important free trade agreements officially come into effect in the time to come.

In addition, after two years of responding to the COVID-19 resurgence, it has brought many valuable lessons for seafood processing and exporting enterprises, thereby helping to increase their initiative in implementing flexible and effective production and business plans and to become highly responsive to the unusual fluctuations of the supply chain.

“We still believe that seafood exports will grow in 2022 as the global demand for seafood still climb up. However, the biggest difficulty now is that the price of raw materials continues its upward trend, which may adversely affect the fulfillment of orders this year”, said Mr. Linh.

Meanwhile, in the field of textile and garment, the production atmosphere is bustling in many large local enterprises such as Hoa Tho Textile - Garment Corporation, March 29 Textile - Garment JSC and the Vinatex International JSC.

This sector also recorded a high export growth rate in 2021 with a total export turnover of US$460 million, up 11.7% as compared to 2020.

Workers are seen at the Da Nang Rubber Joint Stock Company in Lien Chieu District. Photo: M.QUE

Ms. Tran Tuong Anh, the Deputy General Director of Hoa Tho Textile -Garment Corporation, said that the number of orders received by the company at the beginning of this year increased significantly as compared to the same period last year.

Till date, the company has signed contracts for production until the end of the second quarter of 2022 and made plans to receive even more orders of a large value until the end of the year.

The positive point is that orders with products with high added value such as suits, work uniforms and workwear were exported to the US market last year despite the complicated developments of COVDI-19.

“As generally assessed, the production situation is now much “brighter” due to flexible pandemic prevention and control policies. In addition to the 11,000 employees currently working, the company plans to recruit more skilled and highly-qualified workers to keep up with the production schedule”, said Ms. Anh.

Meanwhile, Mr. Huynh Trinh, the Director of Da Nang Forestry Product Export JSC also said that the number of orders is very high, received from now until the third quarter of 2022.

Accordingly, the company produces an average of 15 wooden containers valued at US$20,000 each per month for export to the European market. In order to fulfill such a high volume of orders, last year, the company had to recruit more workers and the workers continuously worked overtime to keep up with production schedule.

The company has built a production plan as well as proactively sourced raw materials to ensure the fulfillment of orders from now until the end of this year. The main source of raw materials is acacia wood in central provinces and cities, so the transportation as well as storage is relatively convenient. The important task is to pay more attention to ensuring the strict practice of COVID-19 prevention and control so as to avoid disruption to production.

It can be seen that, right from the first days of the new year, production activities recorded at local enterprises, especially in important industries and fields, have taken place with new enthusiasm and new expectations.

The business community is highly determined to join with the local authorities and residents in completing the key goals set for 2022- the year of safe and flexible adaptation and effective control of COVID-19 and socio-economic recovery and development.

Reporting by KHANH HOA, MAI QUE – Translating by A. THU