Creating Driving Force for Economic Growth

10:16:19 AM | 25/10/2021

Having been hard hit by the COVID-19 pandemic, but by adopting many synchronous solutions to support businesses, Bac Giang Department of Industry and Trade has obtained impressive achievements.

Expanding the export market

In 2020 and early 2021, despite being affected by the COVID-19 pandemic, Bac Giang's economic growth remained high, estimated at 6.4%, led by industry and construction which rose by 9.69%. The gross regional domestic product (GRDP) (current price) was forecast at VND56,380 billion (US$2.4 billion), fulfilling 43.8% of the plan. Bac Giang's foreign direct investment (FDI) inflow was ranked 9th nationwide. Industrial production continued to keep growing well, reaching VND266,765 billion (US$11 billion) in 2020, exceeding 25% of the set target. The total retail sales of consumer goods and services reached VND29,362 billion, meeting people's demand for consumption and trade.

Besides, by effectively making the most of opportunities from free trade agreements (FTAs), Bac Giang province's export has continuously grown impressively for years, averagely expanding 36.5% a year 2016-2020, with the value reaching US$11.2 billion in 2020, exceeding the target by 71%. In the first eight months of 2021, it was estimated at US$8.5 billion, or 57.7% of the plan. The import value was US$10.6 billion in 2020, as much as 58.9% higher than the target, and at US$9.1 billion in the first eight months of 2021, reaching 69% of the full-year plan. Its key export markets included China (accounting for 37.0%), South Korea (35.7%), the United States (15.1%) and India (10.1%), while main import markets were China (36.9%), South Korea (35%), Taiwan (5.4%) and Japan (5.2%). Major exports were computers, electronic products and components (28.2%), telephones and components (26.4%), apparels and footwear (15.1%) and electrical equipment (20.2%).

Its exports overcome technical barriers even in selective markets such as apparels to the United States and the European Union; and agricultural products such as fresh lychee, vegetables and fruits are imported into the US, the EU, Japan and Australia.

In particular, in 2021, facing unprecedented difficulties and challenges with the fourth outbreak of the COVID-19 pandemic in many localities, with Bac Giang being the largest epidemic contagion of the country, the Department of Industry and Trade advised the Provincial People's Committee to figure out three scenarios, with specific plans for each COVID-19 epidemic development, each market, each distribution and consumption channel. At the same time, the department successfully organized an online conference to promote international lychee sales attended by 30 domestic and international purchasing points (22 domestic and eight foreign points in China, Japan, Singapore and Australia), which was highly appreciated by central and local authorities at home and abroad.

Actively seeking solutions to business difficulties

The Department of Industry and Trade advised the Provincial People's Committee to adopt many business support solutions. Accordingly, the department actively informed and built programs and plans and coordinated with relevant agencies to help local companies in trouble. Specifically, it prepared infrastructure and investment locations, provided information for investors and enterprises to make new investments and expand business operations; completed technical infrastructure, and boosted vocational training and trade promotion.

Notably, administrative reform relating to business support is always a top priority. The province regularly reviews administrative procedures across agency and publicly publishes administrative procedures (together with forms, processes, fees and charges) on the website of the Provincial Public Administration Service Center for easy access and implementation by organizations and individuals.

In addition, trade promotion is focused. The department actively advises on and submits business support policies to the Provincial People's Committee to grasp opportunities and challenges when free trade agreements (FTAs) officially take effect. The agency continues to strengthen connections with Vietnam's Trade Offices and Trade Counselors abroad, foreign representative agencies in Vietnam for timely information on FTAs to help businesses understand and catch up with new regulations to make the most of FTA opportunities. In business support in trade promotion, the department has provided a lot of domestic and international market information to local businesses on the province’s website (www.bacgiang.gov.vn), the department’s website (www.bacgiangintrade.gov.vn), e-commerce exchange (www.san24h.vn), and social networks to facilitate businesses and manufacturers to connect suppliers and buyers of goods.

Mr. Nguyen Van Phuong, Deputy Director of the Department of Industry and Trade, affirmed that in order to support and accompany businesses in 2021, the department has focused on the five following groups of solutions: (1) Making good forecasts, applying flexible management, creating positive and comprehensive changes in all fields. (2) Further proposing solutions to remove difficulties for businesses. (3) Promoting industrial development, especially investment attraction in industrial zone development. (4), Reforming and improving efficiency of trade promotion, export market development and expansion. And (5), boosting administrative reform, improving effectiveness and efficiency of state management of industry and trade.

In 2021, the industry and trade sector of Bac Giang province aims to achieve industrial production value of VND271,357 billion (based on the constant price in 2010), up 17.6% compared to 2020 and VND319,167 billion (current price), up 19.6% compared to 2020. Total retail revenue of goods and services was VND34,032 billion, up 15.9%; export value was US$14.8 billion, up 32.2%; and the import value was US$13.3 billion, up 25.9%.

Source: Vietnam Business Forum