As orders rise, Vietnamese textile firms see better prospects in 2024
In the face of unpredictable volatility, Vietnam's companies are investing in technology, innovation and production to meet the targets they have set themselves, whilst keeping a close eye on market trends.
Orders continued to rise in the second quarter, signaling a return to positive business performance for Vietnamese textile companies, local insiders have said.
| Production at Garment 10 Company. Photo: Khac Kien/ The Hanoi Times |
Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, said: “"Orders are picking up again, contributing to the gradual recovery of businesses.”
The latest data from the General Department of Customs shows that the total textile and garment export turnover reached over $9.53bn in the first quarter of 2024, an increase of 9.62% compared to the same period in 2023, he highlighted.
So far this year, global textile and garment manufacturers and suppliers have consistently chosen Vietnam for production and orders, raising expectations that export turnover can reach US$44 billion as planned, Giang said.
Garment 10 Corporation has experienced a remarkable recovery due to its strong focus on both export and domestic market development. CEO of Garment 10 Corporation, Than Duc Viet, reported that the company's total revenue reached VND1.13 trillion ($44.5 million) in the first quarter, a significant uptick of 24.2% compared to the same period last year. Export revenue also surged by 28.27% to VND1 trillion ($39.3 million).
The company has a large number of orders in hand for the second quarter, and there is an expectation that some types of orders will continue into the third quarter.
In its plans for 2024, the enterprise has several major projects in place, such as the Garment 10 Centurion chain of fashion centers and a system of stores in most provinces and cities. In early April, the company opened a Garment 10 Centurion store in Hanoi's Dong Da district, bringing the total number of its sales showrooms to 300.
At Dong Xuan Knitting Single Member Company Limited, fabric orders have started to increase, with the expected monthly production of the dyeing and weaving factory reaching 100-130 tons. The company has also received textile orders up to August this year.
Nguyen Dang Loi, CEO of Dong Xuan, said that in order to secure orders, the company has been steadily innovating and developing new fabric lines in line with customers' tastes and requirements. The company also has a high level of compliance with quality, social and environmental requirements.
According to Cao Huu Hieu, CEO of Vietnam National Textile and Garment Group (Vinatex), market challenges have a direct impact on businesses. But thanks to the group's determined and proactive management, efforts and flexibility, Vinatex achieved an estimated 20% year-on-year increase in sales and profit in the first quarter, he stressed.
In the face of continuing tough conditions, the textile and garment industry has made efforts to capitalize on opportunities in both domestic and international markets to increase sales, according to the Vietnam Textile and Garment Association.
Enhancing self-reliance capability
In the face of unpredictable volatility, Vietnam's companies are investing in technology, innovation and production to meet the targets they have set themselves, whilst keeping a close eye on market trends.
According to the CEO of Garment 10 Corporation, the company is under pressure to increase investment to meet the demands of green transformation, expanding producer responsibility, ESG (environmental, social, and governance) practices, digital transformation, and others. In addition, rising transportation costs due to tensions in the Red Sea region have cut into the company's profits.
"We continue to explore and tap domestic and international markets, diversify products and customers, focus on research and development of new products and materials to handle difficult orders and complex product structures, and ensure short delivery times with better profitability," he said.
Luong Van Thu, CEO of May Dap Cau Joint Stock Company, said the company will reorganize production, increase technology investment and minimize costs in order to achieve its sales target of VND800 billion ($31.4 million) in 2024, with orders signed by the middle of the third quarter.
"By maintaining investment in technology and the high skills of its workforce, Dap Cau Garment JSC is confident of securing new orders, maintaining production and stabilising the livelihood of its employees," he said.
Vinatex's CEO emphasized the importance of prioritizing solutions to secure orders, quickly seize opportunities and promptly manage production and business situations through forecasts and updates.
Efforts will be made to boost productivity, reduce costs, apply advanced management solutions, and undertake key projects to increase production capacity, including the fireproof fabric production project and the Nam Dinh fiber project, he said.
Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, believes that the industry needs to address raw material shortages in the long term. This will help companies become more self-sustaining, allowing them to take advantage of the production shift to Vietnam and further integrate into the global textile and garment value chain.
The association called on the Ministry of Industry and Trade to provide immediate guidance on the implementation of Vietnam's Textile, Garment, Leather and Footwear Development Strategy to 2030, with a vision to 2035, to enable localities to plan their own schemes and attract investment.
