State-owned enterprises expand production and export

The market in 2023 faces many difficulties. Photo: Vinatex

Northern Food Corporation (Vinafood 1) in 2022 achieved quite positive business results, with the total profit of the Corporation estimated at 283 billion VND, equaling 101.3% of the plan. In addition, the rice export volume of the Corporation was estimated at 700,000 tons. As a result, export turnover was calculated at 310 million USD, equaling 105.27 % of the plan.

In 2023, a representative of Vinafood 1 stated that the Corporation would strive to maintain its position as one of the major rice exporters. In particular, the specific solutions given are persistent debt negotiations with Cuba to keep the market, increased work and exchange for removing obstacles and maintaining relations with Iraqi partners, and closely following the policies and needs of the Philippines and Malaysia markets to increase the amount of rice winning tenders. In addition, the Corporation will also focus on solutions to foreign affairs and strengthen trade promotion to expand foreign trade and retail markets in the direction of increasing the proportion of fragrant rice and high-quality rice in the export structure.

However, Vinafood 1's leadership also frankly admitted that the world economy is in a particularly difficult period when it has to face at the same time very difficult problems such as the economic decline associated with inflation, more and more obvious and extreme climate change, new needs and new consumption patterns.

This situation affects Southern Food Corporation - Vinafood 2. This business exports about 2.8-3 million tons of rice annually, with an annual export turnover of over 1 billion USD, and sales of over 30,000 billion. From 2013 to 2021, Vinafood 2 continuously suffered losses but prospered with a profit of more than VND88 billion in 2022. According to Vinafood 2, this achievement resulted from the following solutions to adapt to the post-pandemic new market with flexible measures in production and business. Therefore, this achievement needs to be promoted in 2023.

In the textile and garment sector, the "turbulent" assessment of 2022 is still there; the world's total demand for textile products is forecast to grow only from 2.5-4%. However, according to Mr. Cao Huu Hieu, General Director of Vietnam National Textile and Garment Group (Vinatex), most new units will have orders by the end of February 2023. However, it is forecast that orders of the garment industry will recover in the second quarter of 2023, although there will be fierce price competition from competitors such as Bangladesh, India and China. Therefore, to cope with difficulties and ensure the good implementation of production and business plans from the beginning of the year, ensure cash flow and prepare resources for the market rivalry, Vinatex has set out many plans.

Specifically, promoting the development of the Group's production chain of knitted products can enable them to proactively supply raw materials, reduce yarn inventories, and increase added value for the final products of the chain. In addition, Mr. Hieu said, businesses also have to follow the market regularly, customers and production plans to make quick decisions in receiving orders and converting products according to market demand, consistent with the factory's production resources, focus on improving the production system and production management, actively implementing digital transformation and giving priority to maintaining the quality of yarn products to create a competitive advantage for Vietnamese yarn in the export market. In particular, to expand exports, enterprises must research new products and markets to catch up with the trend of advanced green production, meeting the standards of large customers and large markets.

Similarly, Vietnam Chemical Industry Group (Vinachem), in 2023, Vinachem set a revenue target of more than VND 63,100 billion, an increase of 1.5% compared to the estimated implementation in 2022. According to Mr. Nguyen Phu Cuong, Chairman of Vinachem's Board of Directors, to achieve the above results, the Group will strengthen trade promotion activities in domestic and foreign markets and actively participate in the world market by participating in conferences. In addition, international fairs find out the needs, approach customers and promote and introduce products to customers, thereby keeping and increasing export market share.

At the Vietnam Coffee Corporation (Vinacafe), the representative of this business leader also emphasized the solution of research, development and expansion of potential markets, stabilizing the focal point of the coffee export business, including deep processing and green coffee at the parent company.

This solution not only helps businesses keep export momentum but also aims to achieve the revenue target of VND 1,960 billion in 2023, a profit of VND 13.5 billion, and overcome the loss of business results in 2022.

According to the Committee for Management of State Capital at Enterprises, the production and business activities of state-owned groups and corporations remain stable, basically completing the annual plan; the total value of state capital is preserved and developed; total revenue, profit, budget payment, value of development investment capital and the average income of employees increased; no risky investment projects causing large losses and endangering loss of state capital have arisen. At the regular Government meeting in February, Prime Minister Pham Minh Chinh asked state-owned corporations and corporations to step up development investment, especially large-scale new investment projects with high pervasive efficiency. On the other hand, it is necessary to apply technology and focus on digital transformation, green transformation, circular economy, and climate change response.