Textile and garment enterprises respond to market fluctuations

Workers sewing export shoes at Hai My Phu Tho Industrial Company Limited, Soc Dang Craft Village Industrial Cluster, Soc Dang Commune, Doan Hung District.

At this time, many textile and garment enterprises in the province have received enough orders until the end of the second quarter of 2025 and are negotiating for the third quarter of 2025. However, in the first quarter, orders tend to speed up delivery to limit the impact (if any) of US tariff policies, while orders in the second quarter of 2025 tend to slow down, because of waiting for US tax policies.

Mr. Shih Sheng Feng - Deputy Administrative Director of Hai My Phu Tho Industrial Co., Ltd. located at Soc Dang Craft Village Industrial Cluster, Soc Dang Commune, Doan Hung District, specializing in the production of leather shoes for export, said: “In 2024, the company will export 3.6 million pairs of shoes. This year's output is expected to reach 85% of last year's due to the impact of the US tariff policy. On April 3 (Vietnam time), when the US announced new reciprocal tax rates and tax imposition plans, many customers temporarily suspended orders, causing the market and production situation to stagnate. However, as soon as the information about the temporary suspension of the tax was announced on April 10, customers accelerated production and delivery progress, requiring orders to be completed within 90 days. The company has also proactively developed short- and long-term response solutions, focusing on negotiating with customers in the spirit of friendly sharing, seeking export markets, optimizing production management, and speeding up production rate of signed orders in the second quarter".

Faced with the above developments, textile and garment enterprises have also identified this as a special period, so they must carry out production and business with a sense of urgency but still remain calm and clear-headed. Reality shows that market fluctuations and high tax rates are not new to Vietnam's textile and garment industry, which has experienced many storms but still firmly overcome them, affirming its position as the second largest exporter in the world .

Coming to YIDA Vietnam Co., Ltd. located at Song Thao Town Industrial Cluster, Cam Khe Town, Cam Khe District, we witnessed the urgent and active production atmosphere of the workers. Through research, we learned that the Company is a member of Crystal Group, Hong Kong (China) specializing in manufacturing Denim products for export to markets: Europe, America and Asia... In the first quarter, the Company produced more than 3 million products.

Mr. Cheng Chi Fai - CEO of the Company's factory shared: "We have identified that challenges like the present require a spirit of perseverance, courage, commitment, and readiness to work at the highest efficiency, without panic or worry. The company tries to build a flexible working method and response scenario for the worst market. To boost exports, the company identifies improving production capacity as a key factor. That means we need to recruit more workers and improve work efficiency through stronger investment in automation equipment and tools."

Along with production activities, the Trade Union of textile and garment enterprises organized the launch of Workers' Month 2025 with the spirit of promoting labor and production spirit, maximizing output with 90 days of rapid work. Leaders of units and grassroots Trade Unions participated in propaganda and mobilization so that workers could understand market developments, not panic, not waver but make great efforts, determined to complete orders of the second quarter before July 5, 2025.

Along with the production campaign, textile and garment enterprises strive to understand the supply chain of raw materials, classify each item and market that is at risk of being affected by new tax policies to have a basis for negotiating with customers and finding suitable directions in the coming time. At the same time, enterprises diversify products, supply chains, and expand markets to avoid dependence on some existing markets. Along with updating information, promptly grasping the situation and giving flexible and realistic instructions from all levels and sectors, enterprises wish and propose to the State and Government policies to support enterprises and workers, ensuring stable production, employment and income for workers.

Trinh Ha

Source: https://baophutho.vn/doanh-nghiep-det-may-ung-pho-voi-bien-dong-cua-thi-truong-233589.htm