Movement, adaptation and integration

Production activities at My Phuong Food Company Limited. Photo: HUU ANH

Choose the right direction

Recently, Danang Rubber Joint Stock Company (DRC) has focused on producing and exporting radial tires instead of bias tires. DRC has increased the capacity of its radial tire factory to about 1.2 million products/year with the expectation of expanding its market share in the United States from 1.3% in 2024 to 2.1% in 2029, while maintaining a stable 7.5% in the Brazilian market.

Although it will only enter the passenger car radial tire segment (PCR) in 2023, DRC has recorded positive results when it achieved break-even gross profit in the second quarter of 2025. With expected sales growth of an average of 30.7% per year in the period 2025 - 2029, PCR can become a new turning point for the business.

“Thanks to optimal production costs and a capacity expansion strategy, DRC radial tires have risen to enhance their competitiveness in the international market, targeting large foreign markets such as the United States and Brazil. This is both an opportunity and a big challenge, as the global game not only requires low prices but also scale, technology and brand,” said Mr. Le Hoang Khanh Nhut, General Director of DRC.

This November is the peak export season of Huong Que Production - Processing - Import-Export Trading Company Limited (Hoa Khanh Ward). The company is currently exporting to 12 European and American countries with a planned output of more than 15,000 products, an increase of 20% compared to previous months. The main products for export are shoe insoles and sandals, accounting for 40% of the company's total products.

Mr. Nguyen Xuan Son, Director of the company, said that in addition to the city's support, the enterprise proactively takes solutions to achieve sustainable exports.

Accordingly, the company focuses on training a team of employees with in-depth expertise in export management, foreign languages, understanding of local culture, and a thorough grasp of policies, technical barriers, tariffs, etc. At the same time, improving and maintaining product quality, upholding the core values of the enterprise.

The integration of cultural elements is also promoted by businesses, because each country has its own consumer culture and domestic tastes. Businesses promote consumption channels, such as selling on cross-border e-commerce platforms and working with commercial counselors abroad.

Adapting to the new context

Hoa Tho Textile and Garment Corporation sets a revenue target of VND5,050 billion and pre-tax profit of VND350 billion in 2025. Of which, export turnover is targeted to grow by 3% to USD255 million. The corporation's major markets are currently the United States, Europe, and Japan.

In the final months of the year, businesses will focus on promoting market activities, maximizing equipment performance, labor productivity, improving quality and improving production and business efficiency, especially at factories with room for growth.

According to business representatives, in the fourth quarter of 2025, demand and prices are expected to increase slightly thanks to the peak season and imports from China and South Korea. Domestic fabric orders have increased significantly to meet garment export demand, leading to an increase in demand and prices for yarn and dyeing.

During this period, businesses also face many fluctuations, such as the US market is expected to see an increase in consumer goods prices, causing a decrease in garment purchasing power, slower and fewer orders; the European and Japanese markets are expected to plan to reduce output for spring orders in 2026, with stricter requirements for green products and environmental certification.

At the same time, the unskilled labor force in the Central region continues to fluctuate due to the attraction and competition of high-tech, real estate, and tourism industries. At the same time, increasing the regional minimum wage from January 1, 2026 according to the new roadmap will increase labor costs, requiring textile and garment enterprises to be more proactive in improving welfare policies, vocational training, and automation to stabilize the workforce.

After 3 years of targeting the international market, up to now My Phuong Food Company Limited (Hoa Khanh Ward) has exported products to more than 10 countries, such as China, Korea, Japan, the United States... The production capacity is about 3 tons of products per day, of which up to 50% of the output is for export.

Ms. Mai Thi Y Nhi, co-founder of My Phuong Food Co., Ltd., said that the company has started participating in cross-border e-commerce channels for the past 3 months. This is a great opportunity, opening up a new path to access the international market. However, there are still many difficulties that the company is facing such as: needing personnel to operate the platform, proficient in foreign languages, investing in images, content, and advertising.

“We chose to start with the Alibaba platform because we had support from the Trade Promotion Agency ( Ministry of Industry and Trade ) and were trained thoroughly, starting with the most basic tasks such as rewriting product descriptions, building images to respond to customers according to international standards. We consider this a channel to build a long-term export brand, not just "closing orders quickly". But if we want to go the long way, we must invest systematically and deeply, doing it correctly and sufficiently, this is a sustainable path for Vietnamese businesses to step out into the world with their true value", Ms. Nhi shared.

Source: https://baodanang.vn/chuyen-dong-thich-ung-va-hoi-nhap-3310114.html