In the first 10 months of 2022, the total import and export turnover of goods in Da Nang was estimated at more than US$2.9 billion, up 15.2% over the same period in 2021. Merchandise trade balance in the 10-month period continued to maintain a trade surplus.

However, according to the forecast of the export business community in the area, the export situation from late 2022 to 2023 will face many difficulties due to global economic fluctuations, requiring Da Nang businesses to make even more efforts to further maintain production and business activities and guarantee workers' lives.

Production activities at the Hoa Tho Textile and Garment Corporation. Photo: Q.TRANG

Decrease in order numbers

Mr. Nguyen Xuan Son, Director of the Huong Que Production-Processing-Import Export Trading Co., Ltd. said that in the last months of the year, orders from importers tend to decrease due to the negative impact of high inflation in key export markets such as EU, Japan and South Korea. Also, high inventories in the domestic retail system have reduced the company’s production and export activities.

In addition, the prices of raw materials and accessories have increased continuously since the beginning of the year, making the costs of enterprises increase by about 20-25%, especially logistics costs for export enterprises. Fortunately, the export partners of the company still order regularly, so the unit only sees the 25% decrease in the number of orders.

“We are making every effort to guarantee jobs for our workers. Currently, the company’s employees still maintain their jobs to ensure the delivery schedule for partners. On November 17, we exported to Germany a container of goods"said Mr. Son.

Meanwhile, the Hoa Tho Textile and Garment Corporation cannot avoid difficulties and challenges due to the impact of geopolitical factors and the world economic situation. Included are a disruption in raw material supply, increased input costs, inflation rises, and a significant decrease in consumer demand. All these factors have affected orders, product prices and efficiency of the corporation in the last months of 2022.

As of October 2022, the Da Nang Rubber Joint Stock Company (DRC) earned more than US$100 million in exports, reaching nearly 90% of the year’s plan.

However, market work has been carried out quite well for both yarn and garment industries. Grasping opportunity of the market to recover positively after the COVID-19 pandemic, the sales department of the company has actively exploited orders to ensure production according to specialisation for factories.

According to Mr. Le Hoang Khanh Nhut, General Director of the DRC, domestic enterprises in general and DRC in particular were affected by the galloping increase in raw material prices due to supply disruptions. In addition, logistics costs reach a record increase globally, and the purchasing power of domestic and foreign markets has decreased unprecedentedly.

“Despite these challenges, DRC has focused on diversifying export markets, proactively sourcing input materials, investing in capacity expansion and enhancing product quality to increase competitiveness in the market. This helps the company proactively respond to the actual situation, promptly respond to goods for the market, ensure production and business plans and labourers’ lives" revealed Mr. Nhut.

The city's industry and trade sector needs to step up trade promotion to further promote 'Made-in-Da Nang' products. IN THE PHOTO: Customers and businesses visit the booths at 'The week of promotion to stimulate shopping demand' programme in Da Nang 2022 on November 10. Photo: Q.T

Many solutions to promote export activities

Faced with the difficult problem of a sharply declining export market, while input costs are high, businesses proactively offer many solutions to try to reduce costs of cost of input materials and intermediate stages, and limit the increase in selling prices of products instead of much relying on foreign partners or waiting for inflation to go down.

Mr. Nguyen Duc Tri, Chairman of the Board of Directors of the Hoa Tho Textile and Garment Corporation, said that in the coming time, his unit will complete the Center for Research and Development of Garment Products to be more proactive in designing and developing samples, purchasing raw materials, and producing and supplying products to the market.

At the same time, the corporation will prioritize promoting digitalisation and application of information technology in all aspects of operations.

Meanwhile, Mr. Le Hoang Khanh Nhut underlined a need for the Department of Industry and Trade and relevant agencies to promptly implement policies and programmes to develop supporting industries, as well as organise more supporting industry connection programmes in Da Nang and across the country. The purpose is to facilitate businesses to access domestic raw materials to ensure input quality, low prices and low transportation costs.

Deputy Director of the Department of Industry and Trade Nguyen Huu Hanh said, in order to create momentum for exports in the last months of the year, especially to exploit well in major markets such as the US, Europe and Japan, besides solutions to help businesses remove difficulties, the Department of Industry and Trade continues to update and promptly notify businesses of information and recommendations from the Ministry of Industry and Trade and related ministries and agencies on operating mechanisms, import and export policies, useful information on markets and commodities, technical measures for import and export goods.

Importance will be attached to supporting enterprises to remove difficulties and obstacles relating to import and export activities, as well as widely publicising in-depth trade remedies to improve the self-protection ability of enterprises when participating in export markets.

Reporting by QUYNH TRANG - Translating by M.DUNG