Producing garments for export at Viet Tien Garment Joint Stock Corporation.

Market recovery

After nearly a year of "broken, broken" supply, customers canceled, postponed, extended delivery time due to the negative impact of the Covid-19 epidemic, so far textile enterprises have gradually "overcame difficulties". When the number of orders is increasing, economic efficiency is improved and stable income and jobs are guaranteed for employees. Assessing the efficiency of production and business of enterprises, Deputy General Director of Garment 10 Bach Thang Long Corporation said that the total revenue of the unit in the past six months reached VND 1,433 billion, down 20% compared to the same period last year. profit after tax reached 33.8 billion dong, up 2.8% over the same period thanks to cost savings. In the face of unstable developments of countries in the region that produce textiles and garments such as Myanmar, Cambodia, etc., in the past time, the number of orders to Vietnam has been relatively high along with the order value as well. has been raised to help businesses operate more efficiently. Sharing the same view, General Director of Bac Giang Garment Joint Stock Company (LGG) Luu Tien Chung said that the market in the first half of the year improved, with many orders coming in, helping businesses stabilize production and complete the set targets. go out. However, if the epidemic is not brought under control soon, businesses will suffer losses in both revenue and production efficiency. Textile and garment enterprises that process according to partners' orders will be fined, lose processing money, and units that follow the FOB method (purchase of raw materials - production - semi-finished products) will suffer much greater damage if the partner refused to receive the goods due to delay in delivery.

According to Chairman of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex) Le Tien Truong, Vietnam's textile and garment exports in the past six months reached nearly 19 billion USD, up more than 20% over the same period, exceeding the same period in 2019. (when there was no Covid-19 epidemic). This has proved an early recovery in the market when it is forecasted that it will take the end of this year to return to the level of 2019, even the third quarter of 2022. This recovery, in addition to the demand factor, also has a supply-shifting factor, because a group of large textile and garment exporting countries such as India, Bangladesh, Cambodia suffered from a large-scale epidemic, and businesses could not operate. While in Vietnam, by the end of April, the disease control situation is quite good, enterprises can promote full speed for production. Besides the garment industry, which has enough orders even though the unit price is still low, the special bright spot comes from the yarn industry. After 24 consecutive months of difficulties, low demand, and many times of selling below cost, from October 2020, the situation of this industry has brightened up in both demand and selling price. The efficiency in the first six months of the year can offset all the losses in the two years of 2019, 2020, and turn the yarn industry back into an industry that contributes more than 60% of the Group's consolidated efficiency, even though it is only 12 units. The company has a scale of about 7,000 employees, accounting for less than 10% of direct labor and less than 5% if including level 2 garment units. Thereby bringing the Group's total revenue equivalent to the same period but completed profit. more than 70% of the year plan, growing about 190% over the same period, equaling 140% of the same period in 2019.

Tallying and packing exported shirts at 10 Garment Corporation Photo: DANG KHOA

Facing new challenges

According to Vinatex Chairman Le Tien Truong, besides the achieved results, enterprises are currently facing new risks from the negative impact of the Covid-19 epidemic, such as the occurrence of cases in enterprises. garment production; Many enterprises with large production capacity of the Group, based in the South, are facing the risk of having to work at a distance, mobilizing a low rate of labor (as of July 10, there were more than 10 thousand unskilled workers). can go to the factory); items with strengths that have not yet recovered; the yarn industry contributes greatly in efficiency but has high sensitivity to the market, its business position is not sustainable; Textile and garment have good market opportunities, but if progress is not guaranteed because of the risk of epidemics, economic efficiency may be reduced. Therefore, in order to proactively produce and promote exports, it is required that enterprises strictly implement disease prevention and control measures, and at the same time increase their supply capacity in good market conditions due to short-term shifts. come back Vietnam. Flexibility to use low-level business methods such as tailoring for hire to reduce the risk of material supply and working capital with the goal of achieving the highest possible turnover. There is a solution to use the production capacity of the product area that has not yet recovered in a reasonable manner, maintain human resources and minimum fixed costs, etc. Sharing the same view, Chairman of the Vietnam Textile and Apparel Association (Vitas) Vu Duc Giang said that besides taking the initiative in the source of raw materials for domestic production to take advantage of opportunities brought by new-generation trade agreements, businesses need to increase investment in products. chain, research and develop markets to promote export of goods, fulfilling the set target of reaching export turnover of 39 billion USD. At the same time, it is hoped that the State will soon control the epidemic, deploy vaccination on a large scale for workers so that enterprises can stabilize production and export of goods.

Chairman of the Board of Directors of Hung Yen Garment Corporation (Hugaco) Nguyen Xuan Duong added, besides actively investing in modern equipment, expanding production; training and improving the qualifications of employees to meet high-quality and fastidious orders of customers in the post-Covid-19 era, what businesses are most worried about right now is the ability to control and control the disease. The market in the first months of the year prospered, enterprises continuously received orders from the US and EU, but production and business efficiency still depended greatly on the development of the epidemic... If the epidemic is soon controlled along with Abundant orders and available capacity will be suitable conditions to boost production and expand export markets in the near future. Similarly, Deputy General Director of Garment 10 Bach Thang Long said that the general signal of the world market is getting better because countries have vaccinated and consumer demand has increased after two years of being affected by the pandemic. sick. This is a great opportunity for domestic textile and garment enterprises to take advantage of signing orders and boosting exports. However, that is an opportunity, whether or not it can be captured depends greatly on Vietnam's disease prevention and control. If done well, the opportunity to promote the export of goods will be large and vice versa, the number of orders will be transferred to other countries, at which time enterprises will not have orders to do.

In addition to the efforts of enterprises, textile and garment enterprises hope that the State will soon take the initiative in the source of vaccines to vaccinate workers, avoiding the spread in the community. Thereby creating favorable conditions for enterprises to invest safely, stabilize production, and at the same time, have specific policies for the development of textile supporting industries, building concentrated textile and garment development industrial parks, ... to create a pedestal for enterprises to develop.

MINH ĐUC

https://baomoi.com/xuat-khau-det-may-hoi-phuc-da-tang-truong/c/39671976.epi

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