BIDIFOOD Company is one of leading companies having high export turnover. Photo: BIDIFOOD Company’s goods is exported at Quy Nhon port. Photo: Viet Hien

* “Bumper months for export”

According to statistics of the Trade Department, Binh Dinh’s export turnover in the first 6 months of 2007 reached US$175,46 million, accounting for 62.7% of the yearly plan and a year-on-year surge of 35.8%.

The export turnover of provincial State-owned enterprises recorded $20.3 million, a surge of 23.6%; meanwhile, the export turnover of Central State-owned ones gained $28.4 million, a rise of 64%. Products having high exporting rate include agricultural products (a surge of nearly 107%), aquatic products and seafood (over 96%), mineral and building materials (about 46%), forest products (19.3%), and, particularly, wooden furniture which has an increase of 350% for physical volume of exports and 900% for value.

Binh Dinh Food Co., Ltd (BIDIFOOD) is one of enterprises having high export turnover. In the first 6 months of 2007, the company met many difficulties, such as the limitation for exporting rice, hard competition, and the price fluctuation. To overcome difficulties, the company changed the way of purchase by taking goods at appropriate times, freeing all inventories and quickly conducting the capital turnover. In the first half of 2007, the total export turnover of the company reached $21 million, a year-on-year surge of 81%, and its profit was nearly $4.7 million, an increase of 25%, according to the Chairman of BIDIFOOD’s Board of Directors, Ha Thanh Huynh. Other enterprises having high export turnover include Binh Dinh Pharmaceutical and Medical Equipment Company (BIDIPHAR) (a rise of 36.5%), PISICO Corp. (22%), Phu Tai Joint Stock Company (nearly 326%), and Ban Mai Mineral Co., Ltd (over 76%).

* Will export continue accelerating?

With the success in the first six months, Binh Dinh’s export enterprises will have motivation to speed up their business. An advantage for export woodwork processing companies is that they have many contracts due to the expansion of products and markets. Other companies also have export contracts all year round.

However, there are still many difficulties ahead. The problem is that enterprises and functional bodies have to try their best to complete the quota of the whole province’s export turnover of $280 million in 2007.

Currently, Binh Dinh Trade Department has had many practical solutions to finish the quota, such as: providing timely information for enterprises so that they can be active in their business, assisting them in registering the trademark and the ISO for their products to promote the competition in the integration period. The provincial Trade Department also cooperates with functional bodies to propose some supporting policies that are suitable to WTO commitments.

In 2007 Vietnam has practiced commitments when integrating WTO, so there would many difficulties and challenges alongside advantages for business activities. The competition among export markets and enterprises has become harder, particularly in lawsuit against dumping or technical barriers from other countries, said the director of Trade Department, Hoang Van Tuyen.

The provincial enterprises should promote the production capacity, install technical equipment, and apply all solutions to reduce the price and increase the quality and the competition of products, particularly export products that have their own advantages. Alongside this, they need to diversify products and concentrate on producing high value added products, such as wooden furniture, drug and post-titan products.

Enterprises also need to cooperate to establish groups or big enterprises to gather the capital, human resources and raw materials. Simultaneously, it’s necessary to establish the association for export enterprises in the province and actively become a member of the Central enterprises association to create favorable conditions for exporting activities.

• Written by Viet Hien
• Translated by Hong Quang