| Domestic textile market: Not an easy cake to eat Textile enterprises "know themselves and their competitors" to proactively seize opportunities from the production shift |
2 months, export growth 15%
According to data from the General Statistics Office, in the first two months of 2024, the textile and garment group achieved 5.2 billion USD in exports, an increase of 15% over the same period last year, ranking 4th in the group of products with the highest turnover in the country.
This result was achieved thanks to the global textile and garment consumer market gradually warming up from the end of 2023. At the same time, the domestic textile and garment business community struggled to find orders.
Mr. Pham Quang Anh - Director of Dony said that Dony's orders are enough for production until the second quarter of 2024. " Recently, a Middle Eastern customer has scheduled a quote for an order of about 2 40-foot containers. This is a traditional customer and also promises a good start for 2024 ," said Mr. Pham Quang Anh.
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| Exports increase by 15%, textiles await new orders |
Director Dony also said that in terms of quantity, the company's orders in the first quarter of 2024 were not as many as in the same period in 2022 but were double that of 2023. The current order price is still quite low, the company mainly works to make a profit to retain customers, stabilize labor and production in the long term, not "waiting" to make a lot of profit.
Similarly, TNG Investment and Trading Joint Stock Company (TNG) has signed export garment orders until the first half of 2024 thanks to many major partners selling out their inventory and even placing new orders.
With that positive situation, in 2024, TNG plans to increase total capacity by 15% by deploying 45 more sewing lines and recruiting 3,000 more workers, starting from March 2024. In addition, the company will move two garment factories, Viet Duc and Viet Thai, into Son Cam Industrial Park to increase connectivity with supporting factories, thereby improving overall efficiency.
TNG has just announced its business results for February with revenue of 347 billion VND, down 7.5% over the same period, but the cumulative revenue for the first two months of the year increased by nearly 13% to 871 billion VND.
Although the export results in the first two months of the year were positive, Mr. Pham Xuan Hong - Chairman of the Ho Chi Minh City Textile, Embroidery and Knitting Association said that most of the orders were prepared by businesses before Tet. Currently, businesses are urging to find orders to run enough for the first quarter of 2024. " Hopefully from the second quarter of 2024, the order situation will be better, " said Mr. Pham Xuan Hong.
Mr. Hong also informed that currently, some large buyers are planning to move their supply chains out of China. Vietnam is one of the options, so domestic enterprises expect orders to be "brighter" in the near future.
Timely support from the Ministry of Industry and Trade
As an important export industry of the country with high turnover and creating jobs for a large number of workers, textiles and garments always receive attention and support from the Ministry of Industry and Trade. The Ministry has supported many enterprises to participate in international fairs and exhibitions at home and abroad to find new buyers and new distribution chains. At the same time, it has supported enterprises to access new information on the sustainable development requirements of importing countries.
At the end of February, the Ministry of Industry and Trade for the first time coordinated to organize the 2024 International Exhibition on Textile and Garment Technology (VIATT 2024). The exhibition has a scale of over 500 booths of more than 400 domestic and international enterprises from 16 countries and territories around the world.
The exhibition creates favorable conditions for textile and garment enterprises in Vietnam to participate in trade connections with international enterprises, participate in the production chain of global textile and garment companies, forming links throughout the value chain from raw material and accessory production to final products. At the same time, it encourages major brands in the world to transfer technology, management experience and participate in the process of developing raw material and accessory supply sources to form a domestic supply chain.
In addition, according to Mr. Vu Ba Phu - Director of the Trade Promotion Agency (Ministry of Industry and Trade), the Ministry also has many policies to support textile and garment enterprises to be able to transform green and transform digitally in the coming time.
According to Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, the recent return of orders shows that the textile and garment industry is continuing to recover. To achieve the export turnover target, from now until 2030, the textile and garment industry will gradually shift its focus from rapid development to sustainable development and circular business. From 2031 to 2035, it will develop effectively and sustainably according to the circular economic model; perfect the domestic value chain and participate in a high-value position in the global supply chain.
In 2024, the Association is proposing a scenario to achieve an export turnover of about 44 billion USD on the basis of many markets and orders returning. It is forecasted that our country will sign a number of trade agreements with a number of other countries, this is a positive factor when the global playground is fully opened, the Vietnamese textile and garment industry will spread according to the market, according to the trade agreement.
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