On May 5th, the 133rd Canton Fair came to an end. A total of 163 enterprises from Yuecheng District participated in the Canton Fair, with 236 booths. Both the number of exhibitors and booths reached a record high. According to statistics, the intended transaction volume of participating enterprises reached 150 million dollars, an increase of 15% compared to the 126th Canton Fair (autumn 2019).
When returning from the Canton Fair, the first thing each exhibitor did was to prepare samples according to customer requirements. Shaoxing Rungen Textile Co., Ltd., located in Doumen Street, is one of them. "This Canton Fair is the first off-line exhibition fully recovered after the epidemic, a good opportunity to meet old customers and communicate with peers, and an important platform for us to explore new markets and new customers." Wang Genlin, general manager of Shaoxing Rungen Textile Co., Ltd., told reporters, "This time, we have two or three interested customers, with an estimated sales amount of 2 million yuan. Now it is the stage of sample confirmation."
While seeing opportunities, Wang Genlin also admitted that the export situation this year is relatively severe, especially in the traditional manufacturing industry. Due to factors such as sustained weak consumer demand in the European and American markets and prolonged international geopolitical conflicts, export business has been greatly affected. "Since the second half of 2022, orders have declined precipitously, which is the Collective memory of Yuecheng enterprises for the changes in the export situation in the past year."
Minsheng Group Shaoxing Pharmaceutical Co., ltd. is a pharmaceutical enterprise specializing in antibacterial, anti-inflammatory, and antiparasitic raw materials. The enterprise integrates research, development, production, and sales, with an annual output value of over 300 million yuan, of which nearly half is exported. General Manager Zhang Tao told reporters that after the decline in export volume in the second half of last year, the year-on-year export sales from January to April this year decreased by more than 15%. In his view, the logic behind the evaporation of orders was simple: "Under the fierce competition of domestic homogenization, industries are shifting to some Southeast Asian countries, and the global economic weakness has led to a sharp decline in ordinary people's consumption, The company invests over 20 million yuan annually as research and development funds, with a goal of developing 3 to 5 new varieties each year. However, drug research and development has a long cycle, high investment, and uncertain results, which usually take 3 to 5 years to produce results.”
In addition to increasing research and development investment to develop new products, Minsheng Group Shaoxing Pharmaceutical Co., ltd. will actively participate in professional exhibitions both domestically and internationally this year. "In the second half of the year, we will go to Europe to participate in the world's largest and most professional pharmaceutical industry professional exhibition, CPHI, to focus on the incremental markets of old customers, but also actively look for emerging markets, such as the 'the Belt and Road' countries, Africa, etc." said Ren Hong, deputy manager of the sales department.
How did companies actively respond to weak external demand and declining orders? Zhang Tao said that the company will make full use of its industrial advantages, "It is the direction of the company in recent years to enter the field of new materials, such as electronic chemicals, photoelectric materials, etc. By using the" continuous flow "process, the company will set foot in pharmaceutical entrepreneurship fields, such as Synthetic biology, so as to enhance the competitiveness of products."
When it came to improving the core competitiveness of products, Wang Genlin, as the head of a well-known foreign trade enterprise in the Yuecheng textile industry, also has a deep understanding. We are taking the path of specialization and refinement, "he proudly introduced the company's ultra fine denier fabric, which is mainly exported to Arab countries, "The profit margin of this product is more than 10%. We have achieved the best single product among similar products in the market. From a piece of silk to a piece of cloth, we have done a good job in quality control throughout the process, and learned from Japan's advanced technology to achieve the best quality. We have followed the Product differentiation route, so that our peers can compete to imitate but cannot surpass." Wang Genlin said confidently that the textile industry is an emerging industry with the support of research and development and technology.
The exports in the "three carriages" are an important driving force for the national economy and play an important role in supporting regional economic growth. This year, foreign trade as a whole is under great pressure. It is necessary to stabilize the scale and optimize the structure, while maintaining the Political base of foreign trade scale, and enhance the comprehensive competitiveness of foreign trade. In addition to the government's introduction of relevant support policies and guidance, the awareness of concern, innovation, and solidarity among enterprises themselves is also a positive force supporting them to overcome the economic downturn. Relying on the spirit of unyielding, integrity, excellence, and solidarity of the Vietnamese businessmen, the enterprises and entrepreneurs in Yuecheng have acted in a just and practical manner, fulfilling their responsibility to the country and society, and contributing "export" power to promote high-quality economic development in the region.