According to Vietnam Textile and Garment Group (Vinatex), in the first quarter of 2023, in addition to the Japanese market, which continues to show a positive growth rate, textile and garment exports to other major markets such as the United States, the EU and China will continue. sustained decline. While the US market declined for the sixth consecutive month, the first quarter of 2023 saw a 30% contraction over the same period, with export sales reaching just US$3.1 billion. Likewise, export sales to the EU market in the first quarter fell 12% over the same period, reaching US$820 million; The Chinese market shrank by 33% and reached USD 680 million.

“Food” ORDER TO KEEP WORKERS

At the 2023 Banking Panorama Forum, Mr. Truong Van Cam, Vice President and Secretary-General of Vietnam Textile and Apparel Association (Vitas), said that 85-86% of textile and apparel industry products are export-oriented, so any fluctuations in the global economy will affect this industry affect. At the end of the first three months of the year, companies in the textile and clothing industry reported a sharp decline in business results, poor in both sales and profits. At the start of the second quarter, textile and apparel exporters continued to report negative growth as orders fell by 25-30% over the same period.

Mr. Vu Duy Han, Director of Truong Son Thinh Textile Co., Ltd (Me Linh Industrial Cluster, Thai Binh); A company specializing in the production of clothing for export to the Korean, American and European markets expressed concern, “This year, our company faces many difficulties. Most worrying is the low level of partner order completions. Small and small, the Since the unit price is low and we are able to “eat every meal” and try to secure jobs for more than 700 employees, the company is almost not profitable. The lack of orders also makes it impossible for us to launch a new factory with an investment value of more than 50 billion Dong.

Similarly, Mr. Doan Tien Dung, general manager of Nam Ha Garment Joint Stock Company, also said that the textile and apparel companies have never faced the situation of such sharp and sudden drop in orders as they are now. “Orders are only on a monthly basis, the average decrease is 50-60% compared to 2019, therefore the income decreases accordingly. Companies have to find new markets. Manufacturing products is not their forte as long as there are results that create jobs for employees. “Some companies are coming back to seek opportunities in the domestic market, but it’s not easy,” Dung said.

With major textile and apparel export markets such as the US and Europe holding large inventories and purchasing power having plummeted, Vietnamese textile and apparel companies are still trying to find enough ways to keep production going. Mr. Bach Thang Long, permanent deputy general manager of Garment 10 Corporation, said, “At this time, we do not have the right to choose, all products can be made by our company sewing machine. End or low-end merchandise. Not only Garment 10, but also other textile companies. The key now is to maintain production and keep the workforce until the market recovers.”

Sharing the experience of overcoming difficulties, Mr. Pham Van Viet, General Manager of Viet Thang Jeans Co., Ltd (VitaJean) said that the company has repositioned itself in terms of products and markets, and has even entered more niche markets. , niche products. “Products that companies have not accepted before will now be used again. “In the short term, companies will continue to enter the Australian and Canadian markets – markets that require large numbers of products at reasonable prices,” Mr. Viet said.

In order to reach many customers, Viet Thang Jean has used online and e-commerce applications to exchange and ship samples to customers, saving both cost and time, and giving customers an opportunity to evaluate the sample better than before and adjust.

Mr. Nguyen Tien Phuong, chairman and general manager of Tan De Company (Thai Binh), is also trying to find solutions to overcome difficulties, saying that the company has greatly innovated the technology towards automation and digital transformation in human resource management, production up to the transaction, order signing. At the same time, the company is striving to become more environmentally friendly and increase brand awareness in order to meet the criteria of its partners. Although the current signed orders have decreased compared to last year, the company is still committed to ensuring enough jobs for more than 18,000 employees and to maintain a positive growth rate.

At the seminar “Financial Solutions for Export Companies” held at the end of April, Ms. Nguyen Thi Tuyet Mai, Deputy Secretary-General of Vietnam Textile and Apparel Association (Vitas), said that despite many difficulties, but according to information from many companies, recently the The number of partners from Europe, Northeast Asia, Southeast Asia … who want to find out about clothing products tends to increase rapidly compared to the previous months. It is therefore to be expected that the export volume will increase in the second half of the year compared to the beginning of the year.

The content of the article was published in Vietnam Economic Review No. 21-2023 on May 22, 2023. Welcome readers to read below The:

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