Shifting to domestic market, Danang businesses expect to navigate 'storm'

Many businesses in the central city of Danang have shifted to the domestic market to cope with export difficulties, gradually stabilizing production and ensuring jobs for workers.

Despite being affected by an export decline, Ba Loc ABL Co., Ltd., an adhesive and industrial abrasive cloth producer in Hoa Khanh Industrial Park, Lien Chieu district remains confident of reaching its 2023 plan.

Director Nguyen Thanh Phuoc said that this year, the company’s export segment was greatly affected by falling orders. To maintain operations, it has proactively sought domestic customers. During the year, many businesses operating in the same field had to shut down due to difficulties, providing opportunities for the firm to access more domestic customers, not only in the central region, but also the North and South.

"Even though export orders have fallen, thanks to the domestic market, we are still confident of achieving our target," Phuoc said.

Similarly, mechanical manufacturing company Phuong Quan, located in the expanded Hoa Khanh Industrial Park in Lien Chieu district, also suffered a decrease in export orders. However, thanks to focusing on the domestic market, the firm has retained all its workers and has orders placed for 2024.

"Despite the export decline, our company still boldly invests in machinery to create new products serving domestic consumer demand in the coming time. We expect the domestic market to develop well in 2024," said deputy director Phan Duy Phuong.

In 2023, paper producers such as Hoa Binh Carton Packaging Co., Ltd. in Hoa Cam Industrial Park, Cam Le district have also been "hit" by headwinds in the domestic and world economic situation.

However, thanks to quickly shifting to the domestic market, the business has operated stably, ensuring jobs and incomes for employees, and especially growing annual business results.

Vo Thanh Son, director of the company, said that the company's main products are exported to major markets such as the EU, the U.S., Japan, and South Korea.

“Our firm will definitely complete its yearly business targets with revenue growth of at least 7-10% compared to 2022,” he said.

Optimistic 2024 outlook

According to Son, the packaging industry requires constant innovation and diversity of designs. Besides, the company’s products are exported to demanding markets, so the technology content in the products must be high, and competition with similar products is fierce.

Recently, the firm has invested nearly VND4 billion ($164,900) in machinery and equipment to meet customer requirements. At the same time, it has achieved International Organization for Standardization (ISO) and Forest Stewardship Council (FSC) certificates for the packaging industry.

"Investing at this time is certainly very difficult, but if we don't invest, we will not survive and we would be crossed out," Son said.

Showing optimism about the market prospects in 2024, Ba Loc ABL Co., Ltd. has also invested in a closed production system to anticipate the market growth next year.

"We invested in machinery not only to meet production requirements, but also to serve the market recovery," Phuoc said.

Sharing the same view, Huynh Van Thi, director of P.A.D, an artistic design company in Hoa Vang district, said machinery investment helps the firm save production time, especially at present which is the season for 2024 orders.

"Investing in machinery at this time aims to increase output and keep up with our partners' orders. Besides, new machinery will create more beautiful and better quality products," he added.