The world trade will provide huge export opportunities for Dong Nai’s enterprises. At present, the province’s major export markets are Asian countries and these exports account for between 45 to 65 per cent of the total export value of the province.
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| Mechanical manufacturing industry is forecasted to be the next big trend |
* Advantages:
The world trade will provide huge export opportunities for Dong Nai’s enterprises. At present, the province’s major export markets are Asian countries and these exports account for between 45 to 65 per cent of the total export value of the province.
Among major export items which have the potential to raise their export volume are coffee and rubber. Besides, other key export products including wood and wood products, garments, footwears, hand-made pottery, electronics and refrigerators, washing machines and other household appliances can reach a wider range of markets and they will be able to reach more countries around the world.
The WTO accession will bring benefits for foreign invested companies. The Dong Nai provincial government will create and maintain a favorable environment for the investment in order to attract more foreign investment into the province. It is forecasted that a new wave of foreign indirect investment (FII) will flow into Dong Nai in the coming years. It is expected that the provincial government will welcome investment in such fields as banking sector, banking services, insurance, education, telecommunications, transport, medical care and distribution networks. Furthermore, the province will see new investment in entertainment projects and commercial and retail sales projects within the area in the near future.
* Challenges:
However, the WTO accession will place a competitiveness burden on industrial enterprises in Dong Nai and enterprises may not be able to sustain competition due to low technology involved in their manufacturing process. At present, Dong Nai’s industrial products are able to compete with other products in the international market mainly due to low labor cost. The province’s exports will face tough competition from foreign exporters with higher labor cost.
In recent years, a great deal of attention and investment has been focused on trading and service sector but not a sufficient condition to achieve sustainable growth. The province has no large-scale shopping malls or entertainment venues. Besides, tourism has not reached the ambitious targets set for it because investments in tourist industry are still low. Meanwhile, Dong Nai’s agriculture also faces particular challenges with backward cultivation methods and limited irrigation capacity and other problems.
* Solutions:
In order to take advantages of opportunities as well as cope with challenges, Dong Nai will stimulate the development of upstream industries and focus on fostering auxiliary industries. At the same time, the development of a modern service sector should be given top priority. Besides, Dong Nai will strongly encourage foreign investment in high-tech industries, auxiliary industries, financing, healthcare, education and training… The provincial government will facilitate and offer incentives for the development of key industries like chemical industry and mechanical manufacturing industry with on going advances in both size and technology. The province needs to train human resources for mechanical manufacturing industry that is forecasted to be the next big trend. And the provincial government will relax restrictions of policy and improve investment environment to attract more foreign enterprises to invest in Dong Nai.
Reported by Nguyen Phuong
