With just over a month left until the end of 2024, domestic textile and garment enterprises are actively producing, meeting delivery times and finishing as planned.
Up to now, the Company Textile Thanh Cong Trading Investment (TCM) received about 92% of the revenue plan for orders in the fourth quarter of 2024 and about 90% of the revenue plan for orders in 2024. In addition to exporting traditional products, the company has been promoting product diversification, especially environmentally friendly products, recycled products and high-value products, to enhance the product value chain.
In addition to traditional markets, TCM is continuing to expand its customer base in markets with much room for growth, as well as seeking and expanding new customers and markets to increase export revenue, while promoting the development of the current domestic market. With the forecast that the textile and garment export situation will be more positive in the last months of the year and based on the level of order receipt, TCM's leaders are hoping to achieve the business plan set out this year.
Similarly, Song Hong Garment Joint Stock Company in the third quarter of 2024 achieved revenue of VND 1,748 billion, an increase of 45% over the same period last year; minus expenses, net profit was more than VND 130 billion, equivalent to more than 2.5 times over the same period last year. This is the highest quarterly profit the company has achieved since the fourth quarter of 2019. A representative of Song Hong Garment Joint Stock Company said that the positive growth in business results in the third quarter of 2024 was thanks to the company signing many orders in the quarter and some orders in the second quarter of 2024 were shipped in early July 2024.
As a 'giant' in the textile and garment industry, the production and business activities of the Vietnam Textile and Garment Group are also quite positive. The group's export turnover in the first 9 months of 2024 increased by more than 7% compared to the same period in 2023. The group's production and business results in the 3 quarters of the year also showed more positive signs than the previous year with revenue completing 73.6% of the plan, up 2% over the same period; profit equal to 80% of the plan, up more than 70% over the same period. The Group's ability to reach the target in 2024 is considered to have a 'bright chance'.
According to Mr. Pham Xuan Hong - Chairman of the Ho Chi Minh City Embroidery Association, from the end of the first quarter to the beginning of the second quarter of 2024, orders from domestic textile and garment enterprises have changed positively, thanks to which, export turnover has maintained a stable growth momentum. Thanks to that, Vietnam's textile and garment exports are forecast to reach 44 billion USD in 2024.
Leader Vietnam Textile and Garment Group also commented that most of the industry's major export markets have shown positive signs of recovery. For the US market, on September 18, the FED lowered interest rates for the first time since March 2020, GDP in the second quarter of 2024 was at 3%; inflation in August 2024 was at 2.5% year-on-year, the lowest level since March 2021; retail sales in August also increased by 2.11% year-on-year.
The European economy is also gradually being controlled close to the target, with August inflation at 2.4%, the lowest since June 2021; retail sales increased slightly. For the Japanese market, GDP in the second quarter of 2024 increased by 2.9% year-on-year, up 7% from the previous quarter, although inflation remains high, household spending tends to increase slightly.
The garment export market in the first 9 months of the year has recovered due to the shift of orders from China, Bangladesh, and Myanmar to Vietnam. Inventory in key markets such as the US, Europe, and Japan has tended to decrease compared to the same period last year, combined with an increasing purchasing power, creating a recovery in demand for orders from partners. It is expected that garment orders in the fourth quarter of 2024 and the first quarter of 2025 will continue to be abundant, but unit prices have not improved significantly. In the long term, when the policy of cutting interest rates in major markets really has a positive impact on the economy, creating stable jobs and purchasing power, unit prices will improve.
It can be seen that thanks to the increase in orders, the textile and garment industry's exports are gradually stabilizing after a crisis in 2023. According to data recently released by the General Statistics Office, in the first 10 months of 2024, textiles and garments ranked 4th in the group of products with the largest export turnover in the country with 30,572 billion VND, an increase of 10.5% over the same period.
However, as shared by Mr. Pham Quang Anh - Director of Dony Garment Production Company Limited with Cong Thuong newspaper, the increase in orders is not entirely due to market demand but also due to importers increasing inventories. Therefore, this signal, although positive, is not necessarily "bright".
Forecasts for the last months of 2024 show certain positive signals, however, businesses are advised to be extremely cautious, closely manage production and business activities in line with the set plan, identify and prevent risks well, and avoid any unexpected situations in order to complete the annual plan and catch up with the trend in 2025.
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