Increasing added value for the textile industry

Garment production for export at Garment Corporation 10.

Currently, textile and garment enterprises have orders until November and are continuing to negotiate for the following months. In addition to boosting exports and quickly reaching the targets set for 2025, enterprises are also implementing many solutions to increase productivity and enhance product value.

Facing the pressure

General Director of Hoa Tho Textile Joint Stock Corporation Nguyen Ngoc Binh said that, in the face of unfavorable market fluctuations, the unit has implemented a series of solutions to stabilize production and promote exports. The efforts of the entire system have helped the unit's revenue in the past 9 months reach 4,202 billion VND, equal to 83% of the yearly plan; pre-tax profit reached 329 billion VND, equal to 91% of the yearly plan.

To complete the annual revenue target of more than 5,225 billion VND, the unit will promote research, monitor and maximize the exploitation of equipment performance, labor productivity, and improve production and business efficiency. The enterprise will focus on improving product quality and orders, while orienting the source of goods in accordance with the production capacity of each factory; research and build smart factory models, model factories for the future development stage, avoiding the risk of falling behind the world's technology trends, etc.

Mr. Nguyen Ngoc Binh commented that the cotton, fiber, and yarn market has not shown any signs of a breakthrough in the last months of the year, but the garment market is expected to increase slightly in both price and orders when entering the peak shopping season for holidays and Tet. For the US market, it is expected that consumer goods prices will increase, garment purchasing power will decrease, leading to slower and fewer orders; the EU and Japanese markets tend to reduce output and have stricter requirements on green products and environmental certification.

“Not only do orders and unit prices tend to decrease, but there is also increasingly fierce competition among businesses regarding labor resources, especially high-income businesses such as high-tech, real estate, tourism services, etc. In particular, the increase in minimum wage "The new roadmap from January 1, 2026 will affect labor costs, requiring businesses to be proactive in improving welfare policies, vocational training and automation to stabilize labor and promote production of goods," Mr. Nguyen Ngoc Binh emphasized.

According to General Director of Garment Corporation 10 Than Duc Viet, in the past 9 months, the unit's revenue reached 104% of the plan, up 14% over the same period in 2024, in which revenue mainly came from exports, followed by domestic revenue and the service sector. Existing orders are until the end of November, some items until the end of the year.

Businesses are also under a lot of pressure due to a decrease in supply and low unit prices due to the impact of US tax policies and geopolitical instability in the world.

To complete the revenue target of 5,055 billion VND, profit of more than 135 billion VND, the unit will continue to closely follow market developments, find new sources of goods, rearrange production lines, prioritize progress and quality when the market is bad as it is now, and at the same time research solutions and propaganda to attract workers,... General Director of Vietnam Textile and Garment Group (Vinatex) Cao Huu Hieu said that after countervailing tax policy The US's entry into force has led to a 20 to 30% decrease in orders from many businesses due to a sharp decrease in purchasing power in this market.

The coming months will continue to see a decline in textile demand in the US due to the combined impact of tax policies and over-ordering in the first half of the year. This shows that businesses are facing many challenges due to market fluctuations, especially the US market, which accounts for more than 40% of the total export turnover of the Vietnamese textile and garment industry.

Improve position in the chain

Mr. Cao Huu Hieu also analyzed that in the first months of the year, the impact of the US tariff policy was not large because customers accelerated their orders before the tax took effect. But at present, the impact of this policy has been enough to "permeate" businesses, when orders are mainly placed monthly, many businesses do not have enough orders for November, while in previous years there were orders until the end of the year, even until the end of the first quarter of the following year. For Vinatex, thanks to the flexible application of solutions and close monitoring of market developments, the unit has achieved positive results.

In the past 9 months, the unit's revenue reached nearly 14,500 billion VND, equal to 79% of the yearly plan and 110% compared to the same period; pre-tax profit reached 1,040 billion VND, completing 114% of the yearly plan, double compared to the same period in 2024.

According to statistics from the Vietnam Textile and Apparel Association, the total export turnover of Vietnam's textile and garment products in the first 9 months reached nearly 34.8 billion USD, an increase of more than 7.7% over the same period, of which garments accounted for 27.8 billion USD, the rest were fabrics, fibers, yarns, accessories and geotextiles. With the demand for year-end shopping, especially during holidays and Tet, the industry will soon reach the export target of 48 billion USD.

Favorable factors such as Vietnamese textiles and garments being present in nearly 140 countries and territories will help the industry maintain its growth momentum in the coming time. However, the textile and garment industry is also facing many challenges due to its heavy dependence on imported raw materials, especially from China.

For example, raw materials for the yarn industry such as cotton must be imported 100%, fiber imported from 90 to 95%; businesses mainly do processing, have not developed stages that create high added value such as design, brand building and distribution due to lack of financial and human resources.

Next, to enjoy incentives from the free trade agreement which Vietnam has signed, requires meeting the criteria on product origin according to regulations.

One of the competitive advantages of Vietnam's textile industry in the past was cheap labor, but now it is gradually decreasing as large orders and low processing prices tend to shift to countries with cheaper labor. To increase competitiveness, businesses must improve productivity, invest in modern, highly automated equipment, and change their production organization model and management methods to shift to high-end, specialized, high-value-added products.

It is necessary to continue diversifying product designs, markets, and customers as well as proactively sourcing raw materials for domestic production by planning and forming industrial park Concentrate, supply chain. It is necessary to build product development centers, sample creation, etc. to boost production, increase efficiency, thereby enhancing the position of Vietnamese textiles in the global supply chain.

Source: https://baoquangninh.vn/nang-cao-gia-tri-gia-tang-cho-nganh-det-may-3382146.html