Despite many difficulties, the province’s exporters have stably operated, reaping positive results since early this year. Still, they are forecasted to face more challenges ahead in the last six months of 2010.
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My Tai Company’s laborers at work. Photo V.H
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First-half hardship overcoming
Many exporters in Binh Dinh have made all-out efforts to overcome difficulties in the first six month of 2010. Tri Tin Co. Ltd, for example, had to suffered bad effects of the global financial crisis and economic recession, particularly the 2009’s storm; however, the company has strived to stabilize its operation, improving the quality of its products and expanding more markets.
Its business has, therefore, not only showed signs of recovery but gained high growth. The company’s export turnover value has reached nearly US$6.5 million since early this year, a rise of 400 percent against the same period last year.
The Binh Dinh Aquatic Products Joint Stock Company has also made a concerted effort. Facing the barriers of the IUU (illegal, unreported and unregulated fishing) law and other regulations on aquatic and sea products, the company made a breakthrough, increasing its export turnover value up to US$13.9 million, accounting for 151 percent compared to the 2009’s corresponding period.
The province’s exporters have proved their stability and had considerable growth, according to the Department of Industry and Trade. The province’s export turnover value was estimated to reach nearly US$235 million in the first six months of 2010, bringing the province’s total export value to nearly US$235 million, accounting for over 67 percent of the yearly target and up 36 percent from a year earlier, of which the non-State owned enterprises’ export turnover saw a value of US$218 million, Notably, some commodity groups fetched more than US$178 million, including forest products (US$145 million), aquatic products (US$19 million), minerals and construction material (US$14 million).
More new challenges
The achievements of exporters deserve to be acknowledged. However, many experts said that the province’s export development is not actually sustainable as the growth of export turnover value mainly focuses on non-State owned enterprises whose export revenue accounts for 92.7 percent; whilst, State-owned sector and foreign-invested one saw only export revenues of 3.2 and 4.1 percent respectively.
Binh Dinh is expected to reach an export turnover value of US$350 million in 2010, a rise of 11.3 percent over 2009. The first-six-month export proved this figure is attainable; still, many difficulties are still waiting for exporters ahead.
The global financial crisis and economic recession will still have effects on the country’s economy, including the operation of exporters, to some extent. Some key industries, such as aquatic products, leather footwear, woodwork, and minerals, will face more new challenges.
As for the woodwork export sector, woodwork exporters will continue to meet many trade and technical barriers in the U.S and European markets, particularly the Lacey Act and FSC-CoC regulations, according to President of Forest Products Association of Binh Dinh, Nguyen An Diem.
Also, fishermen and aquatic products exporters in Binh Dinh will be tired of follow the regulations on the catch certificate set by the European Union (EU)’s new IUU law while Vietnamese leather-made products will continue to suffer the EU’s anti-dumping tax of 10 percent.
As for the minerals processing and exploitation in Binh Dinh, the export turnover value of the sector is hard to grow if the export tax rate and the preferential import tax rate for titanium ore and refined titanium ore are not amended.
However, with all-out effort, the province’s exporters are expected to overcome all difficulties to reap great results. The export turnover value of nearly US$235 million in the first six months of 2010 is the springboard for further development.
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