Good signs from commodities exports

Efforts to reduce barriers, boost local manufacturing, and improve trade promotion and export markets have resulted in good import-export activity from the opening days and months of the new year.

Workers at Hangyang Company operate machinery that make SSD hard drives.

In the early days of 2024, the production labor environment at export firms in the province is highly lively. Many firms placed export orders till the end of the first quarter, and even into the second and third quarters of this year. Hanyang Co., Ltd. is a typical example from Phu Ha Industrial Zone (IZ). Specializing in the manufacture and processing of memory modules for servers and personal computers (including desktops and laptops), as well as the manufacture and processing of SSD hard drives, the Company expects to export approximately 5 million Memory Module products and 329 thousand SSD products per month by 2023. In 2024, the company plans to create 70 million Memory Modules and eight million SSDs. At this stage, the company expects to receive manufacturing plans from clients within the next six months. The company has guaranteed roughly 60% of the amount for memory modules and about 50% for SSDs. The average monthly output is around six million Memory Module items and 700,000 SSD goods.

Workers place products in the warehouse to preparation for shipping.

In 2023, common difficulties and obstacles throughout the world had a direct impact on the production and business operations of firms in general, and Hanyang Co., Ltd. specifically. However, as a result of its efforts to overcome challenges with several successful solutions, the company has exported more than USD5.98 billion. In only the first two months of this year, the Company exported over USD1.1 billion; in February 2024, the Company exported over USD630 million with over 6.4 million goods. Mr. Choi Dong Hyeon, General Director of Hanyang Co., Ltd., stated: "In 2024, with the arrival of numerous contemporary technologies, the volume of data rises, therefore processing speed must also increase. As a result, it is projected that both consumer and company output would grow. The Company’s current average production accounts for about 80% of its overall output capacity. We are working to increase the number of orders we receive and provide additional local job opportunities. To fulfill market demand, our company employs around 1,700 people and operates on a two-shift, three-shift schedule to guarantee compliance with Labor Law restrictions. Furthermore, overtime is done within the permitted limitations to ensure corporate viability."

JNTC Company employees run dryers throughout manufacturing.

By 2023, JNTC Vina Company at Thuy Van Industrial Park focused on boosting the manufacturing of four tempered glass goods, including phone glass and vehicle glass, with a production capacity of up to 160 million units. Continuing the development momentum of 2023, it is predicted that in 2024, JNTC Vina would expand production to raise the number of goods shipped to over 200,000,000, resulting in a revenue of around USD300,000,000. JNTC Vina has signed customer orders until July 2024. JNTC operates with mobile phone glass accounting for 90% of its main capacity. Phone spectacles' capacity will grow by 50% in 2024. Due to the peculiarities of electronic goods that demand expanding output in a short period of time, it is estimated that the Company will increase its workforce by around 4,400 people in the future to satisfy requests.

Although industrial production was hampered by the lengthy Tet vacation at the start of the year, output fell dramatically; nonetheless, due to company initiative in production, worldwide growth grew when compared to the same period. The industry maintains a high level. Specifically, focusing on a number of primary items such as: manufacturing electronic devices, computers, and optical products; producing spare parts and accessories for motor vehicles; producing chemicals and chemical products; and increasing beverage production from 9.6% to 26.55%... In contrast, sectors such as non-metallic mineral manufacturing, print and copy records, leather and associated goods, mattresses, cabinets, tables, and chairs, rubber and plastic products, paper and paper products, and so on are on the decline. In the first two months of 2024, the whole province exported about USD1,880 million and imported more than USD1,843 million.

Workers inspect export orders.

Along with problems and challenges, it is projected that in 2024, the province’s import and export operations will remain prosperous thanks to assistance from elements such as: In major economies such as the United States and Europe, inflation is slowing, and inventories are steadily dropping.

Furthermore, numerous policies to eliminate barriers to production and business businesses are still being actively and simultaneously implemented, which will assist the business community in promoting production and business in the future. In 2024, it is expected that many large-scale projects will start new investment and expansion in the province; it is expected that over 35 new investment and expansion projects will be completed, such as: expansion project of Vietnam Future Innovation Co., Ltd.; the new project adds additional lines of business to BYD Electronics Co., Ltd.; INST Magnetic New Materials Vietnam Co., Ltd.; Lidong Vietnam Co., Ltd.; Chih Hui Lighting Enterprise Co., Ltd.; Thien Phu Biotech...

Mr. Nguyen Viet Dung, Director of the Department of Industry and Trade, stated: Phu Tho will continue to closely follow the direction of the Provincial Party Committee, People’s Council, Provincial People’s Committee, and Ministry of Industry and Trade, including promoting State management of import and export activities. Coordinate with departments, branches, municipalities, and appropriate agencies to help firms overcome challenges. Strengthen information and propaganda campaigns regarding possible markets, and broaden the hunt for new markets. Encourage firms to take use of obligations under FTA Agreements, particularly the CPTPP, EVFTA, and UKVFTA Agreements, to promote exports; Businesses receive timely information about new demands, laws, and industry trends. Strive for an export turnover target of USD12.5 billion each year, with imports reaching USD11.5 billion.

Thuy Hang