According to the statistics of Thanh Hoa Department of Industry and Trade, the province currently has nearly 300 enterprises operating in the textile and garment industry, providing employment for about 150,000 workers.
Although the main consumption market for Thanh Hoa’s textile and garment industry, which is the United States and EU countries, has declined sharply from the second half of 2022 to the present, businesses have actively approached new markets such as Asia, Southeast Asia… At the same time, diversifying products; accepting low-priced orders to maintain employment for workers.
Many textile and garment enterprises in the province have enhanced interaction, exchange of management experience, techniques, technologies to cooperate with suitable orders for the production capacity of factories; investing in machinery, technology, and improving labor productivity. As a result, in 2023, Thanh Hoa’s textile and garment enterprises produced more than 508 million products, up 3.4% compared to the same period. It is noteworthy that all businesses have already signed orders for the first quarter of 2024, a positive signal of order recovery. This is an opportunity for Thanh Hoa’s textile and garment industry to grow in 2024, striving to achieve a production target of 530 million products.
After the Lunar New Year holiday, many textile and garment companies in Thanh Hoa have started production to meet the orders that have been placed. Like Truong Phat Manufacturing, Services and Trading Co., Ltd in Nong Cong district with more than 300 workers, these days the company is working overtime, increasing shifts to meet the schedule of export orders in 2024.
Although the production plan for 2023 of this company only reached 80%, equivalent to exporting more than 3 million products, but signing orders to export clothes to Russia in 2024 is a positive signal, helping the company stabilize production and create jobs for workers. At present, the company is building a new factory with a maximum capacity of 5 million products and plans to recruit an additional 1,000 workers.
Similarly, South Fame Garments Co., Ltd in Thuong Xuan district still managed to sign orders with European countries, the United States, and Japan despite the many fluctuations in the world situation. In 2023, the company still ensured the production of 5 million products as planned and maintained employment for over 1,800 workers in 3 production workshops. Currently, the company has also proactively secured orders for the first and second quarters of 2024.
Furthermore, SOTO Co., Ltd in Tien Trang commune, Quang Xuong district has signed multiple orders to ensure long-term employment for workers until August 2024. However, due to the 30% decrease in order prices compared to before, the profit has also decreased compared to the same period. This somewhat affects the income of workers, even though they work overtime, the salary is only from 7 to 9 million VND/person/month, lower than before.
Although there are positive signals of order recovery, in the current difficult economic context, Thanh Hoa’s textile and garment enterprises still face many obstacles in 2024. Mr. Vu Cong Thang, Director of Truong Thang Export Garment Joint Stock Company in Nong Cong district shared that businesses in this industry are facing many challenges such as low prices due to intermediaries, along with the shortage of labor and limited credit policies for businesses. From these difficulties, the goods of textile and garment enterprises become disadvantaged in competition with foreign enterprises.
In addition to the above difficulties, Mr. Trinh Xuan Lam, Chairman of Thanh Hoa Province Textile and Garment Association, stated in an exchange with VnEconomy: “Currently, the shortage of orders is not a concern for textile and garment enterprises in the area, but there are still many difficulties such as low prices, high transportation costs, and delays that shorten the time to fulfill orders, so businesses have to work hard to ensure the plan. As a result, the operating costs increase, but the profits of the enterprise do not increase. However, Thanh Hoa’s textile and garment enterprises are still determined to strive for a growth rate of 10-15% this year.”
