In the first two months of the year, textile and garment exports have shown positive signs, with exports in many key markets rebounding. This is a good opportunity for businesses to increase production and promote exports.
Signs of recovery
In 2023, the Vietnamese textile and garment industry faced unprecedented difficulties as the volume of orders fell sharply and export turnover decreased by more than 10% compared to 2022.
However, the production-business results in the first two months of this year showed that many businesses have received orders until the end of the second quarter, signaling optimistic opportunities for the recovery of consumer demand for the textile and garment industry in 2024.
Sharing about the company’s activities, Mr. Tran Nhu Tung, Chairman of the Board of Directors of Thanh Cong Investment and Trading Corporation, said that the company has received about 98% of orders for the first quarter and is negotiating orders for the second quarter.
“With the positive signals from the market in recent months, businesses will gradually overcome difficulties and promote exports in the future,” Mr. Tung informed.
Similarly, at TNG Investment and Trading Joint Stock Company, the amount of orders for the unit has been signed until the end of June, in which many large partners in the US such as Columbia, The Children’s Place, Sportmaster, and Costco are currently negotiating and signing contracts with suppliers of textile products.
 Tong Cong Ty May 10 employees at the production lines. (Photo: Duc Duy/Vietnam+)
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With the increase in the amount of orders, the unit plans to increase total capacity by 15% by deploying an additional 45 sewing lines and recruiting 3,000 workers, starting from March.
Meanwhile, Mr. Nguyen Duc Tri, Chairman of the Board of Directors of Hoa Tho Textile Joint Stock Company, also acknowledged the market opportunities when signs of recovery of consumer demand for this product have begun to emerge in some places.
Deepening investment
Vietnam’s textile and garment industry is one of the key export industries, with export revenue accounting for over 80% of the total production value of the entire industry. Therefore, it is also the industry most directly and heavily affected by the global economic, political, and social situation.
Assessing the market signals in the coming time, Mr. Bui Van Tien, General Director of Vietnam Tien Textile Joint Stock Company, said that the unit has identified and is ready to overcome difficulties and challenges, while building targets for revenue and profit that are higher than in 2023.
In addition, Viet Tien continues to target flexible solution models in all areas arranged efficiently, restructure cooperation relationships, and make high-efficiency investments to enhance the connection with businesses, build the development brand of Viet Tien to a new height.
Furthermore, businesses continue to develop in depth, invest in new machinery, equipment, new technologies, focus on developing a high-quality management team and workforce; transform the business production model towards lean and suitable for the new development stage to bring high efficiency and meet consumer demand.
According to Mr. Cao Huu Hieu, General Director of the Vietnam Textile Group, it is expected that the global textile demand in 2024 will reach USD 715 billion, a slight increase compared to 2023 but still lower than 2022.
Therefore, the focus task in 2024 of the group is to firmly implement the best solutions that have been set out and continue to monitor and forecast the situation to flexibly respond. In all cases, when determining prolonged difficulties, conventional solutions are ineffective, companies need to consider the restructure equation. Review and reorganize the organization structure, optimize the systems, minimize the indirect labor rate, and focus on the market work.
With a growth rate of 15% in the first two months of 2024, Deputy Minister of Industry and Trade Phan Thi Thang believes that the export market signal of the textile and garment industry has shown signs of recovery compared to 2023, especially, all factories have started the year with a high rate of workers returning to work, providing a favorable premise for the textile and garment industry to strive to achieve an export turnover of USD 44 billion this year, a 9% increase compared to 2023.
Seize the market opportunities to boost exports. (Photo: Duc Duy/Vietnam+)
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However, facing increasingly high market requirements, the leadership of the Ministry of Industry and Trade has advised companies to promote development in depth, actively seek, and participate in the global textile and garment supply chain, focusing on stages that bring high added value such as design, production of input raw materials, especially fabric, developing distribution system, step by step upgrading the position in the production chain.
For the target set until 2030, exports continue to be the main driving force, important for the development and growth of the textile and garment industry, diversification of export markets, and maximum development of the domestic market; increasing domestic production rate, increasing added value for Vietnamese fashion products; Developing the Textile and Garment industry tied to protecting the ecological environment… Ms. Phan Thi Thang suggested that companies focus on developing a complete textile and garment production chain on a large scale; investing in modern equipment, high automation, and digital transformation; real-time automatic management, clean, environmentally friendly production,…
Duc Duy
