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| Trade promotion activities supporting businesses have played a crucial role in expanding the reach of Hue's products |
Budget revenues from import-export sector reaches 177.26% of the budget forecast
Import-export operations have increasingly played a vital role in driving GRDP growth, attracting foreign investment, and creating local employment. Following the enactment of Resolution No. 38, which introduced several pilot mechanisms and policies for Thua Thien Hue's development, the sector’s importance has grown significantly. Under this resolution, the central government annually allocates up to 70% of increased import-export revenues, compared to projected targets, to fund local infrastructure projects. Consequently, growth in import-export activity also propels local infrastructure investment.
This momentum has contributed to steady growth in the sector over the past two years.
In the first 11 months of this year, export turnover reached approximately $1,125.6 million, up 22.7% compared to the same period last year. Key export items included garments, wood and wood products, rubber, fiber, textiles, and seafood. Import turnover also increased by 50.9% year-on-year, reaching $938.1 million. The main imported goods supported production and export activities, such as raw materials for textile production, machinery, equipment, tools, and auto components.
The growth in the import-export sector has significantly contributed to increased budget revenue from these activities. In 2023, revenue from import-export operations reached VND 630 billion, exceeding projections by 13.5%. By December, the sector had generated VND 1.099 trillion, equivalent to 177.26% of the budget forecast, 159.28% of the performance target, and an 86.9% increase compared to the same period last year. This additional revenue provides a substantial financial resource for infrastructure investment in the coming year.
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| Textile businesses contribute to creating jobs for the locals |
Attracting FDI to drive export growth
The growth in import-export activities reflects the positive outcomes of effectively utilizing Free Trade Agreements (FTAs). Additionally, policies supporting local businesses in trade promotion activities, connecting with international suppliers, distributors, and importers - both directly and online - have significantly contributed to the robust growth of the export sector.
A representative of Phu Hoa An Textile Investment Joint Stock Company noted that the company faced considerable challenges in export operations during 2022 and 2023. However, orders have gradually improved in 2024. Along with market recovery, tax policies and related administrative procedures have provided substantial support to businesses, alleviating burdens, particularly in financial matters.
Moreover, the pilot policy supporting shipping lines to establish container transport routes and entities handling containerized goods at Chan May Port has played a crucial role in facilitating customs clearance and enhancing import-export activities.
Data from the Department of Planning and Investment indicates that over two years of implementing this policy, Chan May Port received a total of 104 container ship arrivals, with a throughput of 10,591 TEUs (equivalent to 158,865 tons of cargo). Among these, 61 ships were qualified for financial support, with disbursements amounting to VND 12.81 billion. Additionally, a support fund of VND 1.814 billion was allocated to businesses, organizations, and individuals transporting goods via containers to and from Chan May Port.
These policies have undoubtedly provided significant assistance to businesses in the import-export sector. However, when compared to other localities in the region, the potential advantages of import-export activities in this area have yet to be fully utilized.
Mr. Tran Van My - General Director of Scavi Group's Central Management Center and Chairman of the Hue FDI Club emphasized that Thua Thien Hue needs to upgrade its infrastructure, particularly by developing seaports with connections to more international shipping routes and increasing shipping frequency for better convenience and reduce export transportation costs. He also highlighted the importance of focusing on cost-effective logistics services to shorten transit times, ensuring competitiveness with domestic and international ports, thereby enhancing the province's appeal for investment. The province also needs to establish specialized industrial zones to foster mutual support and collaboration among industries; reform administrative procedures, particularly in customs clearance, to reduce the time required for import-export processes.
According to Ms. Nguyen Thi Bich Thao, Director of the Center for Investment, Trade Promotion, and Enterprise Support, the province is prioritizing the attraction of industries that play a pivotal, groundbreaking, and far-reaching role within its economic and industrial zones. To achieve this, the province has focused on planning efforts, preparing large-scale clean land reserves to proactively attract secondary investors, and investing in connectivity infrastructure and logistics. These efforts aim to draw FDI businesses to Hue, driving comprehensive transformation in increasing budget revenues, job creation, and enhancing production capacity.