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Hanoi's exporters outperform FDI firms in Jan-Sep
Son Nguyen - Le Nam 16:26, 2022/10/18
Between January and September, Hanoi's domestic companies earned a total of US$7.1 billion from exports, while FDI firms sold $6 billion worth of products to overseas markets.

Local exporters see strong output growth and account for a larger part of Hanoi’s total exports than FDI businesses in the past nine months, data from the Department of Industry and Trade shows.

Electronic devices produced at Hanoi's Thach That Industrial Park for exports. Photo: Thanh Hai

According to the local department, export turnover increased by 19.6% on-year to nearly US$13.1 billion in January-September.

Of the figure, Vietnamese companies based in Hanoi have exported $7.1 billion worth of products, and foreign direct investment (FDI) firms' number is $6 billion, Nguyen Kieu Oanh, Deputy Director of the Hanoi Department of Industry and Trade, said.

"Both domestic and FDI exporters have seen strong growth in their products, but FDI firms no longer overwhelmingly outperform domestic firms as they used to," Oanh said.

"The narrow difference between domestic and FDI businesses shows Vietnamese companies have made a remarkable recovery on the international market," she said.

Data from the Department of Industry and Trade indicates the best export values seen in textile and garments, computers and electronics, footwear and leather products, and wood and woodware in the past nine months.

Specifically, footwear and leather exports soar 62.4% on-year to $1.5 billion; textile and garment exports gain 30.5% on-year to $2.04 billion; computer and electronics exports rose 26.4% to nearly $1.8 billion.

Notably, oil and gas exports rose 2.4 time-fold to reach $1.06 billion from the figure recorded in January-September last year. Other exports such as agricultural products and machinery and appliances post slight gains.

Amid difficulties brought by the pandemic and the unpredictability of the global socio-political confrontations, strong efforts of local companies and the drastic administration of Hanoi authorities have facilitated exports to grow significantly, making the city one of the five largest exporting localities of the country.

The results prove companies have taken advantage of the recoveries in key export markets such as the US, Japan, the European Union (EU) and China. In addition, Vietnamese companies have exploited several free trade agreements (FTAs) between Vietnam and its partners to expand their markets.

Since the beginning of the year, Hanoi-based companies have undertaken some strong measures to overcome difficulties, maintain and stabilize their operations, mapped out various plans to limit risks, minimize damages and explore new opportunities in the new conditions.

According to Hapro's Deputy General Director Le Anh Tuan said.BRG Group's Hanoi Trade Joint Stock Corporation (Hapro), one of the major retail businesses in the city, has sought new markets and developed new products amid the closure of overseas markets and orders.

He said that the company has strived to achieve the dual goal of preventing the pandemic and maintaining revenue growth.

 Peanut processing at the Hanoi Trade Joint Stock Corporation (Hapro) for exports. Photo: Vu Sinh

“Hapro has developed stable sources of supplies and built a processing plant. The company also explores opportunities brought by the FTAs to boost its exports,” Tuan said.

“Hapro’s products are now available in 80 countries and territories across the globe.”

General Director of May 10 Corporation Than Duc Viet said the company seeks chances from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).

He said that the company targets to raise its exports to the EU in the near future while studying several new markets in Africa.

According to economic specialist Nguyen Minh Phong, Hanoi companies and authorities should work together on feasible solutions to boost the export of software, information and telecommunication, and building materials, which are vital future exports.

Acting Director of the Hanoi Department of Industry and Trade Tran Thi Phuong Lan said that the city had launched several trade promotion programs to support local companies in finding overseas markets and expanding their lists of export markets.

“Local businesses are given access to bank loans, incentives and high technologies to increase their competitiveness,” she said.

The support from local authorities has helped businesses progress at minimum costs, she said, adding the companies have also made efforts to build product brands and gain trust from overseas consumers.

“The department will focus on effective implementation of the Plan on the international integration of Hanoi in 2021-2025 and others,” Lan said.

“In the future, the Hanoi Department of Industry and Trade will continue to promote trade activities so that local companies will seize the opportunities brought by trade agreements between Vietnam and other countries and organizations,” she said.

TAG: Hanoi exports FDI covid-19 business economic growth
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