In the first quarter of 2023, the business performance in Vinh Phuc industrial zones grew impressively and helped upgrade the investment and business environment in industrial zones, said Mr. Nguyen Xuan Phuong, Director of the Vinh Phuc Industrial Zones Management Board, in an interview granted to Vietnam Business Forum’s reporter.
In the first quarter, the local textile and garment industry earned US$73.43 million, up 17% year on year
In the first quarter of 2023, tenants in Vinh Phuc industrial parks achieved many optimistic business results. Could you please tell us more about this?
In the first months of 2023, slowing global economic growth, weakened consumer demand and increased cost burdens hurt the business performance of companies, including tenants in Vinh Phuc industrial zones, especially industrial manufacturers and processors. Fortunately, with the timely action of provincial authorities to assist them to deal with emerging difficulties as well as their effort to overcome those difficulties, their business performance continued to stay stable and grow in the first quarter of 2023. Their key revenue, export and tax payment indicators increased over the same period of last year, specifically as follows:
In the first quarter of 2023, foreign direct investment (FDI) firms reported the estimated revenue to grow 15% year on year to US$2,847.73 million, the export value to climb 12% to US$2,037.66 million and the tax payment value to jump 10% to VND1,772.15 billion. Domestic direct investment (DDI) companies reported an estimated revenue of VND3,811.98 billion, an export value of VND300.35 billion and tax payment amount of VND125.2 billion, which rose 6%, 223% and 5% over the same period of 2022, respectively.
In the first quarter, FDI and DDI companies in Vinh Phuc industrial zones employed 3,841 workers, bringing their total workforce to 131,871 people, of which local workers accounted for 73,966, or 56.1% of the total workforce).
Could you tell us more specifically about the performance by industry in Vinh Phuc industrial zones?
By industry, tenants in industrial zones fared very well in the first quarter of 2023:
Automotive and motorcycle manufacturing and assembly industry: Revenue was estimated at US$187.02 million, up 15% year on year; export value at US$66.15 million, up 12%; and tax amount at VND177.02 billion, up 2%. To date, companies in this industry are employing 1,647 workers, 48 people more than that counted on December 15, 2022.
Automotive and motorcycle parts industry: Revenue was estimated at US$159.52 million, up 12% year on year; export value at US$65.48 million, up 10%; and tax amount at VND151.08 billion, up 11%. To date, companies in this sector are hiring 8,761 workers, 255 people more than from December 15, 2022.
Electronics and supporting industry: Revenue was forecast at US$2,053.28 million, up 15% year on year; export value at US$1,695.35 million, up 12%; and tax amount at VND1,161.68 billion, up 11%. At present, companies in this industry are employing 86,299 workers, an increase of 2,514 people over the number on December 15, 2022.
Textile and garment industry: Revenue was projected at US$73.43 million, up 17% year on year; export value at US$66.02 million, up 14%; and tax amount at VND23.69 billion, up 13%. Presently, textile and garment companies are hiring 17,382 workers, an increase of 506 people compared to December 15, 2022.
Construction material manufacturing industry of Prime Group: Revenue was estimated at US$24.62 million, up 17% year on year; export value at US$2.76 million, up 14%; and tax amount at VND73.19 billion, up 13%. To date, this sector is generating jobs for 976 workers, an increase of 28 people compared to that on December 15, 2022.
Given the first quarter performance, would you tell us about tasks and goals set for tenants in Vinh Phuc industrial zones in the second quarter of 2023?
Based on the actual results in the first quarter of 2023, some key indicators needed to be completed by tenants in industrial zones in the second quarter of 2023 include:
For FDI companies: Revenue is estimated at US$3,019 million, up 6% from the first quarter of 2023; export value at US$2,139 million, up 5%; and tax amount at VND1,843 billion, up 4%.
For DDI companies: Revenue is forecast at VND4,000 billion, up 4% versus the first quarter of 2023; export value at VND330 billion, up 9%; and tax amount at VND131 billion, up 4%.
Tenants in industrial zones will create new jobs for about 2,000 workers, both locals and migrants.
Thank you very much!
By Nguyet Tham, Vietnam Business Forum
Vietnamese
