In the first 5 months of the year, the total export turnover is estimated to reach $136.17 billion USD, a decrease of 11.6%, equivalent to $17.93 billion USD compared to the same period in 2022. Accounting for over 70% of the total export turnover, FDI enterprises are facing numerous challenges. These difficulties stem from factors such as the pandemic, global conflict, and changes in the global supply chain.
For Mavin, one of the major corporations in the Agriculture and Food sector, the challenges faced in the first half of 2023 included efforts to reduce production costs due to rising raw material expenses, as most costs in the agriculture and food industry have increased. In this situation, Mavin must maintain low production costs to ensure the company's profitability and safeguard the interests of shareholders. Consequently, for the time being, Mavin has decided to withdraw from the export market amidst the challenging market conditions caused by the impact of the Covid-19 pandemic and focus on the domestic market. This move aims to shorten supply chains and help the company establish specific operational plans, avoiding being passive in response to the market's economic situation.
According to the Chairman of the Mavin Group's Board of Directors, Mr. David John Whitehead, Mavin is also exploring the application of circular economy models on livestock farms as a solution for the current situation. Additionally, the company has made one of the most significant decisions in recent years by implementing digital transformation into its production and livestock activities. "We employ automation and robotics in our factories to assist in the finishing process of products. Moreover, we also utilize hand-held devices on livestock farms, enabling staff to input data directly and have it transmitted to the headquarters in real-time," shared Mr. David.
According to experts' assessments, the export situation will improve, but it will take time. Although there will be certain difficulties, this period will also bring about new opportunities for FDI enterprises in Vietnam, such as Mavin.
For more details, watch the report on overcoming export difficulties of FDI enterprises on the 9:00 PM Vietnamese News on July 5, 2023, broadcasted on VTV4 channel.