Positive outcomes from adaptation and international economic integration.

In line with the inevitable trend of a market economy , Thanh Hoa province is strongly orienting and supporting international economic integration. The involvement of state agencies, as well as the efforts and experience of businesses, have yielded quite positive results. Along with the flourishing attraction of foreign direct investment (FDI), Thanh Hoa's import and export activities are also demonstrating their competitiveness in a constantly fluctuating market.

Positive outcomes from adaptation and international economic integration. Export production at Thanh Hoa Seafood Import-Export Joint Stock Company (Le Mon Industrial Park).

Since the beginning of 2024, import-export businesses in Thanh Hoa have faced new challenges as sea freight rates have increased many times compared to the end of the previous year. For the European market, the prolonged conflict in the Red Sea has caused sea freight rates to increase by 80%, even up to 300% compared to December 2023. Affected by the overall market, freight rates to Asia have also increased significantly due to delays in container traffic and congestion at some ports in the region. In this context, many businesses have proactively adapted with various specific solutions, tailored to their production, business goals, and market orientations.

At Thanh Hoa Seafood Import-Export Joint Stock Company, the company exports an average of 50 containers of seafood per month, mainly to the European market under CIF contracts (the seller pays for shipping). Along with negotiating, sharing, and supporting shipping costs, the company has also explored several nearby and domestic markets to reduce expenses. Fluctuations in market share, prices, and transportation conditions are constant market changes that require the company to be proactive in adapting. Sharing difficulties with customers will inevitably affect the company's profits; however, it is a necessary solution when the company wants to retain traditional customers and build credibility to develop new customers.

According to information from the Department of Industry and Trade - the permanent agency of the Committee for International Economic Integration and Export Program Steering Committee - various activities related to international economic integration have been implemented since the beginning of the year. Along with thematic discussions on disseminating information about international integration and implementing relevant legal regulations, the Department of Industry and Trade has coordinated with departments and divisions of the Ministry of Industry and Trade to hold conferences to raise awareness about international economic integration, especially information on markets covered by Free Trade Agreements (FTAs) and measures to prevent disputes and fraud in international trade for state management officials and businesses in the province. In particular, intensive training courses on new generation Free Trade Agreements (EVFTA, CPTPP, RCEP, UKVFTA), directly connecting businesses with Vietnamese trade missions in various countries, have proven effective in helping businesses find the "right" and "suitable" markets to boost exports.

Thanks to these efforts, in the first eight months of 2024, the export of goods by businesses in the province still achieved significant growth, with a turnover value of over 3.9 billion USD, an increase of 20.7% compared to the same period last year and reaching 65.9% of the annual plan. Several items saw high export volumes, such as: garments, footwear, cement, and petrochemical products. Also in the past eight months, FDI attraction continued to thrive with 17 projects, totaling 367.8 million USD in registered capital, a 1.76-fold increase in the number of projects and a 26.9% increase in registered capital.

Efforts to attract investment and official development assistance (ODA) project funding have been strongly promoted. In addition to the two ongoing ODA projects, since the beginning of the year, the Provincial People's Committee has received 18 new programs, projects, and non-project initiatives with a total committed aid capital of over 9 million USD. To date, there are 56 foreign non-governmental organizations operating in the province; of which 40 programs and projects are currently being implemented, with an estimated disbursement value of approximately 2.7 million USD for the first six months of 2024.

According to the assessment of the Steering Committee for International Economic Integration and the Export Program Steering Committee, in the coming period, several more specific solutions will continue to be strongly implemented to overcome some limitations in awareness and integration capacity of businesses in the province. Accordingly, Thanh Hoa province aims to continue consolidating and strengthening cooperative relations with provinces and cities with traditional ties, embassies, development agencies, and major international organizations; effectively implement the contents of cooperation agreements signed between Thanh Hoa province and foreign localities and partners; and research, select, and establish cooperative relations with new potential localities and partners in countries and territories with advantages in production and application of clean and high technologies, such as Europe and North America.

In addition, Thanh Hoa province will seriously and effectively implement the central government's directives on international economic integration, especially by disseminating information and providing training on the new generation Free Trade Agreements that Vietnam has signed, such as CPTPP, EVFTA, EAEU FTA, and UKVFTA. This aims to provide businesses, organizations, and individuals with information on import and export standards, import quality, trade barriers, goods, and trade defense measures of partner countries in these agreements, helping businesses better understand and promote import and export activities.

In addition, state agencies will implement national and local trade promotion programs, and develop e-commerce to increase the transaction capacity and market expansion opportunities for businesses in the area; proactively approach large, potential corporations to encourage investment, especially in logistics and inland container depot (ICD) investors; focus on attracting domestic and foreign investors with strong potential and brands to invest in projects with modern technology, high technological content, environmental friendliness, efficient resource utilization, and products with competitive advantages in the province's six development pillars; at the same time, pay attention to small and medium-sized investors with high and clean technology from Japan, South Korea, the United States, and Western European countries.

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