Vinatex's garment enterprises have enough production orders until the end of the third quarter of 2024

Exports are gradually improving. At this time, most of Vinatex's garment enterprises have signed orders until the end of the third quarter and are continuing to negotiate and sign contracts for the fourth quarter of 2024, which is the peak production season for Christmas and New Year orders.

Mr. Cao Huu Hieu, General Director of Vinatex, informed about the production and business results for the first 6 months.

Enterprises in the system of Vietnam Textile and Garment Group (Vinatex) have had many improvements in production and business activities, most garment enterprises have had enough production orders until the end of the third quarter of 2024.

This information was shared by Vinatex leaders at a press conference on production, business and export situation in the first half of 2024.

In the first 5 months of 2024, Vietnam's textile and garment exports reached nearly 16 billion USD, up 5% over the same period last year, in which the bright spot for exports was in the US market when Vietnam's textile and garment industry rose to the top of the garment export market share, surpassing China and leading in growth rate among the 3 largest textile and garment exporting countries in the world.

Specifically, in the first 5 months of 2024, China's exports decreased by 2%, reaching 66 billion USD; Bangladesh's increased by only 3.9%, reaching 21.7 billion USD (Bangladesh in May 2024 decreased sharply by 16%).

Analyzing further, a representative of Vinatex said: "The improvement of Vietnam's textile and garment industry in the first 5 months of the year did not come from the improvement in the world's demand for textile and garment products, but rather from a certain shift in orders from other countries to Vietnam, combined with the exchange rate advantage when VND depreciated 5% against the USD since the beginning of the year, while the currencies of competing countries remained almost unchanged against the USD."

Orders are better, but the price level is still not stable. Mr. Cao Huu Hieu, General Director of Vinatex said: “Compared to 2023, suppliers and orders have established a new price level and now businesses are having to follow that price level, so unit prices are still 20% lower, even 50% lower than in 2019, the year before the Covid-19 pandemic.

For the fiber industry, export orders to major markets such as China, Türkiye, South Korea, etc. have approached the break-even point. If production costs can be reduced, profits can be achieved.

It is forecasted that in the last 6 months of the year, textile and garment demand in major consumer markets will not improve, interest rate cut plans in these markets are unclear, while competing countries are expected to devalue their currencies by 15%-20% to support exports, so businesses will be under pressure to compete on unit prices in the context of unit prices that have been low for the past 2 years and have not improved.

On the other hand, shipping costs, wages, electricity bills, bank interest rates, etc. are forecast to continue to increase, which will directly impact the production and business performance of enterprises.

Mr. Hieu said: "Vinatex will continue to be flexible in operations, take full advantage of market opportunities, identify technically difficult products, small orders... but high added value to produce instead of cheap, popular products that are difficult to compete with, and regularly monitor and update, forecast market information, develop possible scenarios and have appropriate plans for production and business activities."

The goal is to reach the finish line in 2024 with consolidated revenue reaching 17,900 billion VND, equal to 101.63% compared to 2023, consolidated profit reaching 550 billion VND, equal to 102.13% compared to 2023.

Faced with fierce competition in the market, many businesses in the fiber industry have had to flexibly switch to blended and recycled fiber products, which are not their strengths, to find new directions in niche markets besides traditional cotton fibers.

With the parent company, to promote new business opportunities, Vinatex and Coats Group (UK) signed a memorandum of understanding (MOU) on the production of fire-resistant fabric clothing with exclusive technology from Coats Group. The goal in the first year is to bring to market fire-resistant fabric products with a value of 5 million USD.

It is known that in July 2024, the first orders to Indonesia with 5,000 meters of fabric will be exported, followed by orders of 50,000 meters of fabric for the Middle East market, 5,000 meters of fabric for the Indian market and continue to be offered to other markets.

Source: https://baodautu.vn/doanh-nghiep-may-cua-vinatex-du-don-hang-san-xuat-toi-het-quy-iii2024-d218227.html