Receiving orders shifting from Bangladesh helped Vietnam's textile and garment industry successfully escape and achieve its export target in a difficult year.
Vinatex holds meeting to inform about production and business situation in 2024 - Photo: NGOC AN
On December 25, Vietnam Textile and Garment Group (Vinatex) held a meeting to inform about production and business activities in 2024 and implementation in 2025.
Mr. Cao Huu Hieu, general director of Vinatex, said that despite a year of storms and difficulties, which seemed to yield no results, the corporation and the textile industry still maintained growth momentum and no unit suffered losses.
Hit the target by moving orders
Accordingly, consolidated revenue is estimated at VND 18,100 billion, equivalent to 102.8%; consolidated profit is estimated at VND 740 billion, up 37.5% compared to 2023; Average income of employees is VND 10.3 million/month, up 8.9%.
Mr. Hieu shared that in 2023, the textile and garment industry had to go through many hardships. For the first time in nearly 30 years, export turnover decreased by more than 11%. The difficult trend continued in the first 6 months of 2024, when the world economy continued to decline, inflation increased, and political instability became more intense.
Accordingly, the orders that the business receives are mainly small, with strict requirements on quality and fast delivery time, and the unit price remains very low.
Especially when the fiber industry has not shown any positive signs, the market is gloomy, selling below cost price still results in losses. This reality makes the group's leaders have to meet many times, calculating response plans if the target is not met.
However, the situation in the last 6 months of the year had an unexpected reversal, mainly due to some "luck". Mr. Hieu said that the unstable situation in Bangladesh caused many strikes, forcing customers to change direction, including Vietnam.
Up to now, textile and garment enterprises have taken advantage of the market and have orders until the end of the first quarter, even the second quarter of 2025.
The fiber industry has many solutions to reduce costs, apply innovation and flexibly convert products, and seek some niche markets.
Therefore, although the overall fiber industry is still losing money, it is only about 10% of 2023, meaning a loss reduction of up to 90%.
According to Mr. Hoang Manh Cam - Deputy Chief of Office of Vinatex, compared to competitors, Vietnam has achieved the best growth rate, at over 10% and it is expected that by the end of 2024, total export turnover will reach nearly 44 billion USD.
With this result, Vietnam is only behind India when this country achieved a growth of nearly 7%. China had a total export turnover in 11 months of 273.4 billion USD, an increase of only 2%; its rival Bangladesh's export growth decreased and only exported 27.7 billion USD.
Many good prospects for 2025
Commenting on 2025, Mr. Cam said that growth signals will be better when major import markets such as the US and EU recover economically, people's spending needs improve with better prospects for the textile and garment industry.
Responding to Tuoi Tre Online ’s question about the sustainability of shifting orders from Bangladesh, Mr. Hieu acknowledged this as an opportunity and luck. However, orders from Bangladesh are mainly basic, low-priced items with competitive advantages from wages, so not all units can take advantage of it.
According to Mr. Hieu, Bangladesh's labor and salary costs are low, only 30% of Vietnam's, ranging from 100-120 USD/month, while ours is 400 USD/month. Therefore, there are not many value-added orders, but these orders open up opportunities for businesses making basic products.
"In 2025, these orders will definitely decrease and Bangladesh will get them back. In fact, there was a month when their exports dropped to 1.6 - 1.7 billion USD, but now they have increased to 3 billion USD/month, proving that they are attracting orders again.
Therefore, next year there will not be much room to exploit textile and garment products from this country, but the general market outlook is better," Mr. Hieu commented.
Turnover of 44 billion USD mainly from foreign enterprises
The turnover of 44 billion USD is mainly FDI, Vietnamese enterprises do not have a high market share. Therefore, if Vietnamese enterprises do not invest in the origin of raw materials, this agreement will certainly bring advantages to FDI enterprises.
Reality proves that a series of investment waves from Japan and Korea are shifting to Vietnam.
“The story of many years that we have been bottlenecked by is the raw materials from fabric. It is not that we do not care about investment, but it is very difficult to develop, especially when environmental regulations are becoming more and more strict, large investments are required and human resources for weaving and dyeing are increasingly scarce,” said Mr. Hieu.
Source: https://tuoitre.vn/det-may-viet-nam-thoat-hiem-thanh-cong-nho-cac-don-hang-bat-ngo-20241225105043228.htm
Comment (0)