Flexible to market fluctuations
Faced with negative market developments, domestic textile and garment enterprises have tried every means to stabilize production and maintain jobs and income for workers.
Mr. Than Duc Viet - General Director of May 10 Corporation (May 10) shared that May 10's strength is shirts, but in 2023, this product line will suffer the heaviest losses. May 10 has to make orders for pants, polo shirts, and T-shirts at the shirt factory. Shirts used to account for 60% of the company, but now only account for 39%.
The “work from home” trend, along with factors such as exchange rates, inflation, geopolitics, and war, have and will continue to affect May 10’s customers. This puts the company in a position where it must redefine its strong products. May 10 currently requires each factory to do well in 3 products.
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| Textile and garment enterprises continue to cope with small, difficult orders. |
Mr. Pham Phu Cuong - Chairman of the Board of Directors of Nha Be Garment Corporation Joint Stock Company (Nha Be Garment) stated that businesses have never faced such difficulties as they do now, with a sharp decline in the market, small orders, and falling prices... To cope with the market situation, Nha Be Garment's vests have been moved to local factories for production, while in Ho Chi Minh City, they produce seamless lacoste and hunting fashion with processing prices that can reach 30-50 USD/product.
May Nha Be is ready to “attack” difficult items, not accepting orders over 15% of production capacity… based on the region, geography, and worker skills to put the product line into production. Therefore, in early 2023, May Nha Be produced 8 product lines, but is currently producing 10 product lines.
Increase productivity, focus on product quality
In the fourth quarter of 2023, the world textile and garment market is assessed to have positive changes. In particular, the US and Chinese markets recovered well, the purchasing managers index was above 50 points (higher than forecast); inflation in the EU in September 2023 decreased by 4.3%.
Regarding Vietnam's textile and garment exports, export turnover in September 2023 to the US and Chinese markets increased by 2% and 11% respectively over the same period; the towel-household industry continued to maintain advantages in raw material prices and output markets; the garment industry showed signs of increased customer exchanges and orders...
However, the problem for textile and garment enterprises is marketing, labor productivity and heavy competition from rival countries.
Mr. Tran Huu Phong - Chairman of the Board of Directors of Vinatex Phu Hung Joint Stock Company said that units need to redefine the market more clearly, have determination with the set goals. For businesses with markets, it is necessary to improve quality to affirm the position of the business.
Mr. Nguyen Van Phong - General Director of Hue Textile and Garment Joint Stock Company commented that 2024 will be a year of great price competition. Prices will not be better than the average price in the last 6 months of 2023.
Customers will require fast and very fast delivery, small orders, high product complexity, diverse designs, and very strict quality requirements. Customers are very interested in product quality and choose businesses to sign long-term cooperation contracts. Therefore, businesses need to pay attention to labor productivity, invest more, deeper, and more timely in automation equipment. At the same time, businesses also pay attention to management methods and improve workers' skills.
Sharing the same view, Mr. Nguyen Xuan Duong - Chairman of the Board of Directors of Hung Yen Garment Corporation - JSC (Hung Yen Garment) said that the current world market situation is very difficult, the prices of oil, fuel, and food have all increased, reducing consumer demand, including textiles.
In 2024, the unit price of processed goods will hardly increase, and may even decrease. Therefore, Hung Yen Garment has begun to orient and research to continue improving productivity, accepting both high-quality orders and processing and labor protection orders. In the current difficult situation, businesses need to invest in high automation, improve the capacity of workers, reduce some capital management costs, etc.
Representing the fiber industry, Ms. Tran Thi Kim Chi - General Director of Phu Bai Fiber Joint Stock Company said that in the coming time, we must calculate carefully, continue to produce high quality, good fibers, reduce costs, and choose customers. In particular, Phu Bai closely follows the market, recognizes which products are in demand and will increase production. With such a viewpoint, in 2024, Phu Bai is not too subjective but also not pessimistic in the face of the current unpredictable fluctuations.
Faced with difficulties and challenges for the remaining months of 2023 and 2024, the leaders of the Vietnam Textile and Garment Group said that in the current uncertain trend, businesses should diversify their markets and be careful in diversifying their products because it also involves equipment investment. When researching the market, it is necessary to determine the short-term and medium-term to adjust orders.
With a large gap in labor productivity between garment enterprises, the leaders of the Vietnam Textile and Garment Group believe that it is necessary to quickly narrow it to improve competitiveness in the market. At the same time, it is necessary to accelerate and strengthen solutions such as digitalization, scientific production organization, market research, etc. Only then, by 2024, will enterprises be able to partly overcome difficulties.
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