Make the most of the "golden time"
According to the Bac Ninh Provincial Statistics Department, in the first seven months of the year, the province's textile, garment, and footwear export turnover is estimated at over 1.3 billion USD, an increase of 38.87% compared to the same period last year. The main reason for this increase is the significant recovery in consumer demand for textiles and garments in major markets such as the United States, Europe, and Japan after a difficult period, leading to a strong increase in export orders for Vietnamese businesses, including those in Bac Ninh.
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Production line at Daum&QQ Vietnam Co., Ltd. (Hiep Hoa commune). Photo: Do Quyen. |
Furthermore, textile and garment businesses in Bac Ninh have actively sought and expanded into new markets; invested in research and development, creating high value-added products. Many businesses have also invested in modern technology and automated production processes, helping to optimize costs, improve productivity, and enhance product quality. Business management has also improved, enabling them to quickly seize market opportunities…
In particular, the temporary imposition of a 10% retaliatory tariff by the United States on Vietnamese goods for 90 days (starting April 9, 2025) is considered a "golden opportunity" for businesses to boost exports and achieve their targets sooner. Accordingly, textile and garment businesses have accelerated production to meet customer demand to the fullest extent. Mr. Nguyen Duc Thang, CEO of Dap Cau Garment Corporation in Vu Ninh ward, shared: "As soon as the US imposed a 10% retaliatory tariff for 90 days, customers urgently requested delivery within a short timeframe. The leadership of Dap Cau Garment Corporation proactively renegotiated with customers in the spirit of sustainable cooperation, optimizing production capacity to increase product output and value. Currently, the Corporation has 3 companies and 1 garment factory under its direct management with nearly 100 production lines, providing stable employment for 3,500 workers. In the first 7 months of the year, the unit's revenue is estimated at 400 billion VND, an increase of 14% compared to the same period last year. We have enough orders to last until the end of the third quarter and are negotiating for the fourth quarter."
Similarly, many other garment businesses in the province have identified the 90-day period during which the US temporarily imposed a 10% retaliatory tariff as a crucial time to accelerate production and meet important orders by early July. Businesses have reorganized production, implemented reasonable overtime measures, and launched system-wide emulation campaigns to quickly achieve their targets.
Proactively responding to new challenges.
Recently, the United States announced reciprocal tariffs with many partner countries ranging from 10% to 41%, with Vietnam at 20%. This figure is significantly lower than the initially projected 46%, considered a positive sign and an acceptable tariff level in the new context. Many businesses in the textile and garment industry have proactively implemented solutions and responded promptly and appropriately to the new tariff policies, such as: diversifying customer partners and product lines; innovating technology and improving labor quality; focusing on investing in green production and circular production; and fully complying with rules of origin, which are prerequisites for entering the US market.
| According to the Bac Ninh Provincial Statistics Department, in the first seven months of the year, the export turnover of the province's textile, garment, and footwear industries is estimated at over 1.3 billion USD, an increase of 38.87% compared to the same period last year. |
At the same time, businesses should proactively renegotiate contracts with partners, negotiate to adjust costs, or share the costs arising from tariffs. In the long term, businesses should take advantage of opportunities from new-generation free trade agreements that Vietnam is a party to, such as the Vietnam-Europe Free Trade Agreement and the Comprehensive and Progressive Trans- Pacific Partnership Agreement, to expand markets to Europe, Japan, and South Korea, reducing dependence on a single market.
Ms. Pham Thi Tra Giang, Production Director of DHA Co., Ltd., Luong Tai commune - a company specializing in the production of export garments - shared: “In the coming time, the company will focus on strengthening its internal capacity by training human resources, applying modern technology to support the production process to reduce costs and enhance competitiveness. We will also focus on exploring and expanding into new markets such as South Korea, Japan, and Canada… in order to gradually reduce our dependence on a single market.”
Thuan Thanh International Fashion Joint Stock Company, located in Song Lieu ward, has also invested in specialized machinery; applying AI and robotics technology in design, model development, and production… At the same time, it aims to exploit the domestic market and export to Europe and member countries of the Comprehensive and Progressive Trans- Pacific Partnership Agreement.
Mr. Nguyen Van Phuong, Deputy Director of the Department of Industry and Trade, stated that the United States has long been a major export market for Vietnamese textile and garment businesses. The US imposition of a 20% retaliatory tariff on Vietnamese goods poses a challenge to Vietnamese businesses in general, and the textile and garment industry in particular. However, amidst the challenges, there are also opportunities, as this pressure forces businesses to diversify their export markets, reducing dependence on one or a few large markets. It also provides an opportunity for businesses to reassess their capital capacity, technology, improve productivity, product quality, and management efficiency. In fact, despite the volatile global trade and economic conditions in July and the first seven months of the year, the total export value of the textile and garment industry continued to grow well.
With the proactive efforts of businesses, it is projected that the province's textile and garment export turnover will continue to achieve positive results in the new context, contributing to the local economic growth.
Source: https://baobacninhtv.vn/bac-ninh-da-dang-thi-truong-nang-suc-canh-tranh-cho-nganh-det-may-postid424113.bbg
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