Dong Nai’s export growth slows in first five months

Tuesday, Jun 04, 2019 15:33

Textile and garment products prepared for export at Bien Hoa City, Dong Nai Province. — Photo

The export turnover of enterprises operating in the southern province of Dong Nai in the first five months of 2019 hit US$7.7 billion, representing a year-on-year rise of 3.4 per cent, according to the provincial Department of Industry and Trade.

In May alone, the total export turnover reached $1.69 billion, 9.8 per cent higher than the previous month, and up 1.5 per cent compared to the same period in 2018.

Import and export activities in Dong Nai are mainly led by foreign-invested enterprises, accounting for 85 per cent of the province's total import and export value.

In the first months of 2019, a number of key exporters of leather, textiles and mechanical products reported slower growth compared to 2018.

The department attributed the locality’s slowing export turnover to the impacts of global trade protection policies.

Director of the department Duong Minh Dung said the US-China trade war had caused countries in the region to build tariff barriers to protect their domestic goods and minimise imports, thus affecting Viet Nam's exports.

The provincial Association of Exporters said orders from now to the end of the year for large enterprises operating in the leather and shoe industry in Dong Nai had decreased from 10-15 per cent, while those in the garment industry dropped by 7 per cent.

Meanwhile, local producers of wood and wooden products in Dong Nai reported they had received orders until the end of 2019 but their partners were asking for discounts, adding that this caused many difficulties for them as the prices of electricity and gasoline had increased, raising production costs.

Although Dong Nai’s export turnover in the first five months increased slowly, the locality still enjoyed a trade surplus of $1.2 billion.

The locality’s export turnover is still expected to reach over $20 billion, with a trade surplus of $2.6 billion. — VNS

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