Garment export enterprises strive to accelerate

Recently, the garment export market has continued to recover faster, thanks to which many garment enterprises in Thai Nguyen province have established orders until the end of the third quarter of 2024, or even the whole year. Currently, enterprises are focusing on boosting production to meet the demand for quantity and delivery time as committed.

Sewing export goods at TDT Investment and Development Joint Stock Company - Dai Tu Branch. Photo: VV

For many months now, garment production activities for export at TDT Investment and Development Joint Stock Company (headquartered in Phu Binh district) have been very busy. Up to now, the unit has established enough orders until the end of 2024. According to the company representative, the orders are mainly exported to the US, South Korea, Canada... and increased by about 30% compared to the same period last year. This is a positive signal to help the company gradually overcome difficulties and soon complete the yearly plan.

To meet the number of orders and keep on schedule, currently, 2/2 of TDT's factories located in Phu Binh and Dai Tu districts are operating at 85-90% of their design capacity; the unit also recruited 200 new workers.

Similarly, TNG Investment and Trading Joint Stock Company, Thanh Hung Garment Joint Stock Company... have also signed orders until the end of the third and fourth quarters of 2024. Mr. Nguyen Viet Hanh, Director of Thanh Hung Garment Joint Stock Company, excitedly said: Compared to the same period last year, export garment orders increased by 20-30%, and order value also increased by 5-10%. Currently, we have invested in a number of additional sewing lines and modern equipment to meet production needs, striving to reach the 2024 revenue (equivalent to 4.5 million USD) ahead of schedule.

According to the functional sector, from the beginning of the year until now, the province's garment output is estimated at 48.9 million products, up 21% over the same period. The garment export market is on the path of recovery and has shown signs of improvement. Specifically, traditional export markets such as the US, Europe... are actively curbing inflation.

The remaining warehouses of fashion brands have therefore also decreased, increasing purchasing power. In addition, Vietnamese garment enterprises, including Thai Nguyen, are also receiving orders from other countries due to the 5% decrease in the exchange rate of the Vietnamese Dong (VND) compared to the US dollar (USD) since the beginning of the year, while the currencies of competing countries are almost unchanged compared to the USD...

Seizing the opportunity, garment enterprises have made efforts and focused on restructuring the market. Along with maintaining traditional markets (such as the US and Europe), many enterprises have expanded their search for export markets to Russia, South Korea and some Asian countries. Some garment enterprises have begun to restructure and invest in technology, green transformation to meet buyers' requirements, improve competitiveness; and convert processing methods to other methods. A typical example is TNG Investment and Trading Joint Stock Company.

Mr. Nguyen Van Thoi, Chairman of the Board of Directors of TNG Investment and Trading Joint Stock Company, said: Currently, TNG has implemented transparency in all Environmental - Social - Governance (ESG) information according to the Global Reporting Initiative standards and is currently meeting 17 sustainable development goals. The entire factory and office of TNG textile are aiming for green standards such as LOTUS or LEED.

TNG Investment and Trading Joint Stock Company has invested in many types of automatic machinery and equipment to improve labor productivity and reduce input costs in the production of export garments.

TNG Textile and Garment's Board of Directors said that this year the Company will continue to accelerate the implementation of the roadmap towards the goal of 100% zero carbon emissions and increase the proportion of renewable energy use. Orders have been filled until the end of this year. In particular, the number of FOB orders from traditional customers such as Decathlon, Asmara, TCP or Columbia have all recovered strongly in the context of gradually decreasing inventories in the US...

In addition to the achieved results, according to experts, garment enterprises are still facing some difficulties and challenges. That is, textile orders have recovered but the processing unit price is still very low, the order volume is small but the delivery time requirement is shortened. The costs of raw materials and logistics are still too high in the context of Vietnam gradually losing its advantage of cheap labor.

Furthermore, most export markets today strictly control the supply chain from labor sources to environmental impacts. Strict requirements from the origin of raw materials, meeting green certification for factories, products using recycled fibers to ensure circular economy standards.

In particular, in the trend of global integration and sustainable development, Vietnam has been participating in many new generation FTAs ​​with a strong commitment to NetZero, the textile and garment industry is facing pressure to reduce harmful emissions in the production process; improve labor resources and the environment, raw materials, save energy and green the production chain, supply chain...

In the above context, experts recommend that garment enterprises focus on and promote the building of their own product brands, replacing exported products that still have to bear the names of other major brands in the world; focus on digital transformation, aiming for smart production; take advantage of the strategic advantages of the development of the Vietnamese textile and footwear industry until 2030, with a vision to 2035 approved by the Government and the opportunities brought by FTAs...

Source: https://baothainguyen.vn/kinh-te/202406/doanh-nghiep-may-xuat-khau-no-luc-tang-toc-50515f7/