Management, application of modern technology, especially daring to invest in developing new products with high risks have helped some textile and garment enterprises successfully "ride the wave".
Escape but not by luck
Sharing at the press conference on the production and business situation of Vietnam Textile and Garment Group in 2024, Mr. Cao Huu Hieu - General Director of Vietnam Textile and Garment Group - said that in 2024, Vietnam's textile and garment industry achieved an export turnover of 44 billion USD, partly due to great luck.
When Bangladesh - Vietnam's textile and garment export competitor - experienced political instability, many partners moved orders out of this country and Vietnam, with its advantage of skilled labor, experience and long-standing reputation in garment production, received a stream of orders. Thanks to that, many domestic textile and garment enterprises, including members of the Group, have 'full' orders from July to December 2024.
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| Mr. Cao Huu Hieu - General Director of Vietnam Textile and Garment Group. Photo: Vinatex |
It is not wrong to say that it is lucky, because in the first half of the year, domestic textile and garment enterprises were still "sinking" in a state of sparse orders. As the leader of the Vietnam Textile and Garment Group said, some enterprises were forced to restructure their products to maintain production.
However, not every business is lucky enough to receive orders from Bangladesh, because these are basic orders, and high-end and fashion product manufacturing units such as May 10 and Hoa Tho will not be able to take advantage of them.
Although not receiving "luck", the fiber industry in 2024 has had a significant change. The fiber industry group alone only lost about 10% compared to 2023, the absolute figure is about 100 billion VND. Mr. Hieu said, the most notable thing is that while the fiber industry is losing money, there are still profitable units. These are all businesses with good governance, brands and especially have invested in researching new products with differences since 5-7 years ago, launched products in 2024 and were accepted by the market.
“ Phu Bai Fiber Joint Stock Company has been researching fiber products from recycled materials since 2016-2017, experiencing many failures, but now this type of fiber has become a high-value product of the company ,” Mr. Hieu gave an example.
Different, green and fast
Differentiation requires businesses to have strategic thinking, even accepting large short-term investments and no income to develop products.
For the Vietnam Textile and Garment Group, the sweet fruit also comes from this thinking when in July 2024 the enterprise put into operation a new product development center. This is a center that the Group has long cherished, associated with the "one-stop" strategy when developing products from the design stage.
“ Although the operation time is short, the center already has a large customer who has placed an order in 2024 and continues to negotiate for an order in 2025. Hopefully, from this success, in 2025, the Group will continue to invest in a new product development center for the fiber industry ,” said Mr. Hieu.
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| Producing new products with diverse components associated with green production helps textile and garment enterprises conquer the market. Illustrative photo |
He also said that if the fiber industry does not research and produce new products with a distinctive green and circular trend right now, it will lose. Conventional products have been competing very hard in the past two years, especially in the Chinese market, and will not even be able to compete on price. It is necessary to develop products with more components, using raw materials from recycled cotton.
“ The story here is speed, if not fast other competitors will offer this product first ” - the leader of Vietnam Textile and Garment Group emphasized.
It is known that, in addition to the new product development center, last year, the Vietnam Textile and Garment Group exploited new markets and niche markets with special, high-tech products such as fire-resistant fabrics and clothing, and researched and developed new types of filament core yarns and blended yarns. Fire-resistant fabrics and clothing are the Group's expected products in 2025 with an expected export turnover of about 4 million USD.
Although researching and developing new and different products, according to many experts, it cannot be associated with the trend of green production and sustainable growth.
In fact, in recent years, textile and garment enterprises have kept up with this trend very well. Particularly for the Vietnam Textile and Garment Group, 100% of yarn factories have used renewable energy, input materials from cotton have green certificates, have traceability, reuse water... Regarding production equipment, in addition to modern technology, enterprises pay great attention to energy consumption, because yarn production consumes a lot of electricity.
Thus, it can be seen that for the textile industry in general or the Vietnam Textile and Garment Group in particular, developing in a green direction associated with differentiation is the right direction and has been partly proven. However, with small internal capacity, especially lacking an important foundation of raw materials and high-quality human resources, textile and garment enterprises still have a very difficult path towards mastering the supply chain.
To do this, as Mr. Vu Duc Giang - Chairman of Vietnam Textile and Apparel Association shared, the efforts of enterprises are not enough but need the cooperation of State management agencies in policy building. In particular, policy stability helps enterprises feel secure in investing and developing.
| Producing products with diverse and different features and components to conquer the market is the goal of potential textile and garment enterprises. However, this journey requires not only capital but also speed, so timely support from policies is needed. |
Source: https://congthuong.vn/doanh-nghiep-det-may-vuot-song-thanh-cong-368235.html
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