Manufacturing enterprises have gradually recovered domestic and export orders - Photo: N.HIEN
Enterprises expect orders to gradually increase again at the end of this year and early next year, ensuring jobs for workers after a long period of limited production.
Orders return to textiles
As one of the enterprises with a stable number of orders in recent times, Mr. Pham Quang Anh, director of Dony Garment Company, said that this enterprise was lucky to have a "crowding" of orders until the end of September, mainly because the inventory of the previous year of partners gradually decreased, the enterprise had to prepare a reserve of goods.
Besides, Vietnam benefits from the shift of orders from other countries, especially more orders from the US due to the devaluation of the Vietnamese currency against the USD and Vietnam has a tax advantage over China.
In addition, this company also has partners negotiating new orders. If successful, there will be orders until the end of this year.
However, Mr. Quang Anh said that most of the orders are not large, partners only place orders 1-2 months in advance instead of large orders and negotiated quarter to half a year in advance as before, because customers are still cautiously monitoring market developments as well as worrying about the pressure of handling inventory.
Meanwhile, despite increasing output, profit margins per product remain low, only 60-70% of the golden age. "Businesses are focusing on increasing output to compensate for profit margins and retain customers in a context where the economy is expected to remain difficult," said Mr. Quang Anh.
The leader of Thanh Cong Textile - Investment - Trading Joint Stock Company also said that this company has received about 88% of the revenue plan for orders in the second quarter of 2024 and about 83% of the revenue plan for orders in the third quarter of 2024.
Of which, textile and garment exports to markets such as the US, EU, and Japan recovered well, while the Korean market recovered more slowly.
Meanwhile, according to Mr. Pham Van Viet - Vice President of the Ho Chi Minh City Textile and Embroidery Association, in the first half of 2024, the textile and garment industry has improved a lot compared to the same period last year.
Many businesses in the association have orders filled until the end of the third quarter, some have orders until the fourth quarter, but the orders are still small and seasonal.
However, difficulties will still surround the textile industry in the coming time due to increased shipping costs, wages, and bank interest rates that are forecast to continue to increase, which will have a significant impact on businesses. "Since the beginning of the year, logistics costs have increased fourfold, not to mention the long delivery time, which also has a big impact on fashion products," said Mr. Viet.
Expect orders to increase gradually by the end of the year
Speaking to Tuoi Tre on June 24, Mr. Nguyen Quoc Anh, Chairman of the Ho Chi Minh City Rubber and Plastic Association, said that rubber and plastic enterprises in Ho Chi Minh City still have enough orders to ensure jobs and income for workers. However, this is a low season for the domestic market, so there are not many orders.
Regarding the export market, according to Mr. Quoc Anh, key markets have not yet shown signs of increasing orders.
Normally, the second quarter is the time when importers place orders for the end of the year, Christmas and New Year. However, this year, businesses still do not have many orders even though the second quarter is almost over. "We expect orders to increase by the end of the year," said Mr. Quoc Anh.
Meanwhile, Mr. Nguyen Van Khanh, vice president of the Ho Chi Minh City Leather and Footwear Association, said that the decline in orders for the leather and footwear industry has not ended, and signs of improving orders are still unclear.
According to Mr. Khanh, because the global economy is still difficult and consumption in the world market has not yet recovered, businesses in this industry are still producing basically to keep their workers.
"We also expect orders to recover soon, and there will likely be bright spots from the third quarter because leather shoes are a consumer industry, and people will soon return to shopping for products," said Mr. Khanh.
Mr. Do Phuoc Tong, chairman of Duy Khanh Mechanical Company and chairman of the Ho Chi Minh City Mechanical and Electrical Association, said that mechanical and electrical enterprises in the city basically still ensure orders for production but profit margins are very low, due to increased costs while selling prices have decreased sharply.
"Businesses now have to compete very strongly, especially with the participation of Chinese businesses, so we are also very stressed about the profit problem. The immediate goal is to have orders and jobs for workers," said Mr. Tong.
Focus on domestic market
Speaking to Tuoi Tre, Mr. Dao Xuan Duc, Chairman of the Ho Chi Minh City Industrial Park Enterprises Association, said that survey results in export processing zones and industrial parks in the area showed that besides good manufacturing enterprises, there are still many enterprises that have not recovered.
According to Mr. Duc, because enterprises supply world markets and participate in global supply chains, order recovery depends largely on the recovery of the world economy as well as global consumption.
In general, jobs for workers are still guaranteed. Enterprises must seek new orders in the international market but need to focus on the domestic market.
Source: https://tuoitre.vn/doanh-nghiep-san-xuat-dan-hoi-phuc-20240625085542033.htm
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