Textile and garment enterprises diversify markets

Mr. Pham Quang Anh - Director of Dony Garment Company Limited - said that the company's production and business activities are currently quite positive. As of the end of August 2024, the company grew by 51% over the same period.

Regarding the reason for the company's growth, Mr. Pham Quang Anh said that it was due to the company expanding into new markets. Besides traditional markets such as the US and the Middle East, Dony has found customers in nearby markets such as Singapore, Malaysia, Thailand, Cambodia, etc.

“ These markets may not sound fancy but they have many advantages. Close geographical distance, reduced transportation costs, reduced delivery time, plus similar consumer habits and aesthetic tastes make it easier to meet demand, ” said the director.

Dony Garment Company Limited achieved high export growth thanks to market diversification. Photo: Dony

On the other hand, market diversification helps businesses avoid negative impacts from economic downturns and reduced consumer demand in major markets. At the same time, it avoids increased transportation costs due to recent conflicts in the Red Sea region...

Not only Dony, textile and garment exports have been flourishing since the beginning of the year, Mr. Vu Duc Giang - Chairman of the Vietnam Textile and Apparel Association - said that in the first 9 months of 2024, the industry reached 38.4 billion USD in export turnover. Of which, large markets still account for a significant proportion such as the US from 39-40%, followed by the EU, Japan, China...

Vietnam Textile and Garment Group is also one of the enterprises that achieved good results in the first 9 months of 2024 when the group's consolidated revenue is estimated at VND 13,036 billion, equal to 100.7% over the same period in 2023, reaching 72.8% of the plan; export turnover reached 1,448 million USD, equal to 107% of the same period last year. Average income per employee reached VND 10.13 million/person/month (equal to 107.5% over the same period in 2023).

However, analyzing the export growth picture in depth, the director of Dony Company said that the market has improved but not significantly. In 2023, brands had very low inventories, so this year, it compensated for the increase in orders, not due to a sharp increase in consumption. In fact, orders in July and August have shown signs of slowing down.

On the other hand, some people think that the increase in textile orders is due to the shift from Bangladesh, but that is not the case. The conflict in Bangladesh has just happened recently, while it takes customers 3-6 months, or even 1-2 years to shift orders. Therefore, if there is a real shift, it will have to be at least in the second half of this year and early next year.

Sharing about the market outlook for the last quarter of 2024, Mr. Pham Quang Anh commented that for Dony, the situation is still relatively stable. Currently, the company has enough orders until the end of March 2025. The company is still looking for new orders, while making efforts to diversify its consumption markets to avoid "putting all eggs in one basket" and maintain production and export growth. "The market rarely fluctuates overall, but only fluctuates in regions. Therefore, to avoid risks, businesses need to diversify their markets," Mr. Pham Quang Anh emphasized once again.

With the Vietnam Textile and Garment Group, the group's leaders determined that member enterprises need to continue to take drastic actions, improve production capacity, and practice thrift to ensure stable production and business operations, especially for raw material production enterprises that have been facing difficulties over the past 30 months.

From an industry perspective, Mr. Vu Duc Giang commented that free trade agreements are making a major contribution to the growth of the industry. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership in particular has created great opportunities for the Vietnamese textile and garment industry to access new markets such as Canada, Australia, and New Zealand, and also helped businesses adapt to the purchasing methods of importers in the bloc. Therefore, it has created very clear growth for the textile and garment industry, exporting to intra-bloc countries and especially the Americas.

A representative of the Vietnam Textile and Apparel Association also stated that in the last months of the year and the following years, the textile and garment industry will continue to exploit incentives from free trade agreements to promote production and exports for the industry.

Source: https://congthuong.vn/doanh-nghiep-det-may-da-dang-hoa-thi-truong-350282.html