Textiles have orders until early 2025

Orders return but difficulties still surround the textile industry - Photo: QA

Textile and garment exports to reach 44 billion USD by 2024

In contrast to the "starvation" of orders at this time last year, this year Dony Garment Company Limited in Ho Chi Minh City is rushing to produce, workers are constantly working overtime to complete orders for the peak season at the end of the year.

Speaking to Tuoi Tre, Mr. Pham Quang Anh, director of Dony Garment Company Limited, said that Dony has so far filled its orders until the fourth quarter of 2024 and is negotiating new orders until March 2025. "About 70 - 80% of orders for the first quarter of 2025 have been finalized. Notably, the company's revenue in August increased by 51% compared to the same period last year. Business results in 2024 could reach a 30% increase, double the initial target of 15%," Mr. Quang Anh happily said.

With increased profits, in addition to the usual salary and bonus policies, the company plans to organize flu vaccinations for all employees and support HPV vaccinations for female senior employees.

Meanwhile, Thanh Cong Textile - Investment - Trading Joint Stock Company (TCM) also recorded impressive business results. According to the latest report, cumulative revenue in the first eight months of 2024 reached more than 107 million USD, up 17% over the same period in 2023, equivalent to 68% of the annual plan. The company's after-tax profit increased sharply by 35%, reaching more than 8 million USD, exceeding the plan by 118%.

In addition to exporting traditional products, TCM leaders said the company is actively expanding its portfolio of environmentally friendly and high-value products to increase the product value chain. The company is also looking to exploit more potential markets to boost exports.

Meanwhile, Mr. Pham Van Viet, vice president of the Ho Chi Minh City Textile, Embroidery and Knitting Association, said that currently, businesses in the association are all full of orders until the end of the year, and some businesses even have orders until the first quarter of next year.

Data from the Vietnam Textile and Apparel Association (VITAS) also shows that the total export turnover of the textile and garment industry in the first eight months of 2024 has exceeded the 28 billion USD mark. To reach the target of 44 billion USD for the whole year, the whole industry needs to achieve an average of about 4 billion USD per month from now until the end of the year. With the recent positive situation, the association assesses the possibility of achieving this target as very high because the second half of the year is the peak time for orders and production during Christmas and Lunar New Year.

Opportunities from interest rate reduction

Textiles and garments are one of the key industrial production sectors that are enjoying many advantages in export activities. Because after the Fed lowered interest rates by 0.5% in early September, when inflation in the US and EU tended to decrease, this helped stimulate consumption in the two major markets consuming Vietnam's textile and garment exports with the expectation that orders will improve in the near future.

Along with that, natural disasters, political instability, and policy inadequacies in some competing countries continue to be opportunities for Vietnamese textile and garment enterprises to receive shifting orders. Along with seasonal factors, festivals and the end of the year, discount policies and consumer stimulus of companies will also bring a more bustling year-end shopping season. On the other hand, transportation costs continue to decrease, helping businesses save costs.

Le Tien Truong, Chairman of the Vietnam National Textile and Garment Group (Vinatex), said that the Fed’s interest rate cut has helped boost consumer sentiment in the US due to lower borrowing costs, reduced impact of credit card interest rates, and boosted confidence in the economy. However, monetary policy often has a slow impact (interest rate changes take several months to fully impact the economy), leading to pressure on consumption that is expected to last until the end of 2024.

Orders are expected to benefit from improved US consumer demand during the holiday shopping season, but unit prices have not improved. Mr. Truong said that demand and unit prices will only really improve from 2025 in a good scenario.

The hard part is not over yet.

Mr. Vu Duc Giang, Chairman of VITAS, said the increase in orders was mainly due to the shift from other countries to Vietnam, not due to increased market demand. Many businesses have focused on developing green and sustainable technology and production such as using renewable energy, saving water and reducing emissions.

Source: https://tuoitre.vn/det-may-co-don-hang-toi-dau-nam-2025-20241009084215526.htm