2023 is forecast to be a difficult year for exporters as the world economy shows signs of recession, leading to decreased demand for goods and food. However, Da Nang's exporters are making every effort to seek more orders and reach new customers.

Production activities at the Son Tra District-based Danifoods Company. Photo: Q.T

In the last months of 2022, businesses involved in the seafood sector faced difficulties when the inflation situation heavily affected import markets. Also, the demand for seafood imports in the international market dropped sharply and the inventory was still high, so importers reduced or stopped new orders.

Besides, sources of imported raw materials were interrupted, whilst the hike in gasoline prices caused fishing groups around the world to reduce the number of fishing vessels in the fourth quarter of 2022.

As for domestic raw materials, fishermen went seasonal fishing, affecting the production of enterprises, and interest rates were on rise.

These are the reasons why many businesses are pessimistic about the export situation in 2023.

Mr. Tran Van Linh, Chairman of the Board of Directors of the Thuan Phuoc Seafood and Trading JSC, said that in 2022, the number of employees at the company decreased to 3,000 from 4,000.

However, earlier this year, the company re-recruited a number of job positions to ensure the progress of orders for its partners.

However, purchasing power in the company's two traditional markets of Japan and the United States, has not fully recovered yet owing to fluctuations in exchange rates and a lack of capital. At the same time, the global economy is in recession, whilst inflation continues to go up, all leading to a decrease in consumption demand. Therefore, the company expects that its sales volume in the first quarter of the year will be lower than the same period last year.

"We continue to improve product quality to retain our traditional partners, waiting for the rebound of the seafood industry in the next quarter" Mr. Linh said.

However, the rapid reopening of China's economy from COVID-19 lockdowns is brightening the outlook for exporters in Da Nang, and worldwide as a whole.

A representative of the D&N Foods Company (Danifoods) said that China’s reopening of land borders after nearly three years of lockdowns to combat the COVID-19 pandemic is good news for Viet Nam to increase the export of products.

China is a market with huge consumption power. When the world's second largest economy opens its door, international tourism in Japan, Hong Kong (China), and the United States will show signs of a strong and steady recovery. Therefore, according to the assessment, the company's number of orders is likely to increase significantly. In addition, the company is expanding its market to Muslim countries such as Malaysia with the aim to develop new partners.

Meanwhile, at the Huong Que Production-Processing-Import Export Trading Company, with its nursing slippers and shoe insoles accounting for 35% of export market share, workers have worked overtime until 9 pm every day for more than one month in an effort to complete large orders for export to South America.

In late February and early March, the company will export 5 containers of goods, a 4-fold increase compared to previous time.

Mr. Nguyen Xuan Son, Director of the company, informed in the third and fourth quarters of last year, the number of orders from importers tended to decrease due to the negative impact of high inflation in key export markets such as the EU, Japan, and South Korea. Also, the high stock volume at domestic retail systems reduced the company’s production and export activities. In addition, the prices of raw materials and accessories increased continuously since the beginning of the year, making the costs of enterprises rise by about 20-25%, especially logistics costs for export enterprises.

“Currently, the large number of orders makes us quite hard but happy. In 2023, the company also tries to seek new partners and markets to have many export orders, thereby creating regular jobs for employees" Mr. Son noted.

Faced with difficulties and challenges, many city-based enterprises have adjusted their production and business plans, diversified forms of market access and expansion, and taken the advantages of the Free Trade Agreements (FTA) to promote the export of goods.

Mr. Nguyen Huu Hanh, Deputy Director of the municipal Department of Industry and Trade, said that as the focal point for international economic integration and implementation of FTAs, the city’s industry and trade sector has been coordinating with relevant agencies to widely publicise full-text documents on the EU-Viet Nam Free Trade Agreement (EVFTA) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to businesses.

Importance will be attached to boosting investment promotion and attraction activities, as well as synchronously implementing support policies for businesses, he added.

Reporting by QUYNH TRANG - Translating by M.DUNG