Textile, garment and footwear enterprises strive to overcome difficulties and reach new markets

Export activities of the textile, garment and footwear industries nationwide are improving positively, with the growth rate expanding compared to the first months of the year. Enterprises in the textile, garment and footwear group of the province have also recorded strong growth results.

Song Hong Garment Joint Stock Company speeds up production of autumn and winter items for export.

Many textile and garment enterprises in the province set new records in business results. Typically, Song Hong Garment Joint Stock Company achieved revenue of VND 1,748 billion in the third quarter of 2024, an increase of 45% over the same period last year; minus expenses, net profit was more than VND 130 billion, equivalent to more than 2.5 times over the same period. This is the highest quarterly profit the company has achieved since the fourth quarter of 2019. The leader of Song Hong Garment Joint Stock Company said that the positive growth in business results in the third quarter of 2024 was thanks to the company signing many orders in the quarter and some orders in the second quarter of 2024 were shipped in early July 2024.

According to the Provincial Statistics Office: Textiles, footwear and leather are product groups with increased volume in the first 10 months of 2024 compared to the same period last year, of which ready-made garments increased by 18.29%; shoes and sandals increased by 17.63%; fabrics of all kinds increased by 8.40%... Key export markets such as the US, Japan, South Korea and China still maintained growth. Garments, footwear and leather are also among the main export items in the total export turnover of the province and contributed positively to the overall growth of the province's export turnover. In the first 10 months, the province's export turnover reached 2,349 million USD, an increase of 13.6% over the same period in 2023.

To achieve the above results, the province's textile and footwear enterprises themselves have made great efforts and constantly innovated in applying advanced technology, improving production processes and quality management to create products that meet domestic demand and conquer the international market with strict standards. In particular, the group of enterprises producing textile and footwear products for export has been proactive and flexible in operations, making the most of market opportunities; many enterprises have paid attention to identifying technically difficult products, small orders... but with high added value to produce, instead of cheap, popular products that are difficult to compete with. At the same time, they always proactively monitor, update, and forecast market information, develop possible scenarios and have appropriate plans for production and business activities. In addition to the self-efforts of enterprises, including actively investing, upgrading modern machinery systems, improving productivity and product quality, functional sectors also actively support enterprises in sustainable development. Programs such as international trade promotion, digital transformation in supply chain management have been and are being supported by the provincial Department of Industry and Trade for enterprises in the province to implement, not only helping to improve the competitiveness of enterprises but also gradually consolidating the position of Nam Dinh 's textile, garment and footwear industry in the market.

According to the Department of Industry and Trade, the current macroeconomic situation is quite favorable, the inventory of enterprises has decreased, showing positive signs for textile and footwear orders in the last months of the year. It is expected that orders will benefit when US consumer demand improves during the holiday shopping season. Demand and unit prices will only really improve from 2025 in a good scenario. With such favorable factors, the Vietnamese textile and footwear industry in general and Nam Dinh in particular are facing great market opportunities and affirming that it will continue to be a bright destination on the world textile and garment map. On the EU side, inflation is on a downward trend. In the near future, Europe is a "gloomy area" in terms of economic recovery and consumption demand in the medium term. As for Japan, this country is also changing its policy approach, accepting inflation and devaluation of the Yen to achieve economic growth. These factors have led to improved consumer demand in Vietnam's three largest textile and footwear export markets in the near future. In addition, from a national competitiveness perspective, political instability and policy inadequacies in direct competitors with Vietnam such as Myanmar and Bangladesh have helped textile and footwear enterprises receive orders shifting from these countries; many enterprises have orders until the second quarter, even the third quarter of 2025. In addition, according to the Department of Industry and Trade: Currently, the garment industry focuses on producing autumn and winter items for domestic consumption and export. The number of orders has increased significantly, and enterprises are continuously recruiting workers to meet production needs. The footwear industry, especially key FDI enterprises such as Amara Vietnam Footwear Co., Ltd., Golden Victory Vietnam Co., Ltd., Viet Power Co., Ltd., Yamani Dynasty Co., Ltd., continue to increase production volume for export; It is expected that in the last months of the year, the export market for leather and footwear products will be increasingly vibrant.

In the coming time, the Ministry of Industry and Trade continues to recommend that textile and footwear enterprises, in addition to paying attention to prices, product quality and delivery time, pay more attention to sustainable development criteria. In addition to large markets, traditional markets also need to pay attention to promoting product consumption in potential markets such as ASEAN, Russia, Canada, etc. To take advantage of and maximize the demand and purchasing power of the market and exploit diverse new markets, textile and footwear enterprises in the province also closely follow the direction of the functional sector, pay more attention to the increasingly higher requirements of large importers, especially the requirements on the ESG (environmental, social and governance) sustainability index and LEED (energy and environmental design) standards. Specifically, garment products exported to Europe must be made from cotton, polyester mixed with recycled fibers made from natural products, waste or surplus textile products. Textile, garment and footwear enterprises will continue to focus on developing science and technology and human resources; actively invest in renovating factories by installing rooftop solar power, using fuel in boilers from coal to electricity; at the same time, need to pay more attention to digital transformation strategies associated with the problem of investing in technology, digital human resources, data and risk control.

Article and photos: Thanh Thuy

Source: https://baonamdinh.vn/kinh-te/202411/doanh-nghiep-det-may-da-giayno-luc-vuot-kho-tiep-can-thi-truong-moi-6fe01b6/