Increasing orders, textile and garment exports are expected to reach the export target of 44 billion USD
Báo điện tử VOV•03/10/2024
VOV.VN - With signed orders in the third quarter and orders under discussion in the fourth quarter, there is much hope for the possibility of reaching the target of 44 billion USD in textile and garment export turnover this year, achieving the set target.
Vietnam's textile and garment exports in the first 8 months of 2024 are estimated to reach 28.32 billion USD, up 6.19% over the same period in 2023. It is forecasted that Vietnam's textile and garment import and export will continue to be positive, because according to cyclical factors, demand for goods often increases sharply in the last months of the year. With signed orders in the third quarter and orders under discussion in the fourth quarter, there is much hope for the possibility of reaching the target of 44 billion USD in export turnover this year, achieving the set target.
Profitability in the following quarter is higher than the previous quarter.
Up to now, Thanh Cong Textile Garment Investment and Trading Joint Stock Company (TCM) has 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 enterprise has been promoting product diversification, especially environmentally friendly products, recycled products and high-value products, to enhance the product value chain.
Many textile and garment enterprises have enough orders until the end of 2024.
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 and future domestic markets. 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.
The big difference between the textile and garment industry in 2024 and 2023 is that after each business quarter, the market has changed more favorably. Chairman of the Vietnam Textile and Garment Group (Vinatex) - Mr. Le Tien Truong said that in the context of the market still facing many difficulties, challenges and unsustainability, in the first 6 months of the year, the whole industry only exported about 20 billion USD. However, after that, the unstable impacts of competing countries such as Bangladesh and Myanmar created short-term advantages for Vietnam's textile and garment industry. "By July 2024, the order signals of units in the industry were quite positive, Vietnam was the only country among the 4 largest textile and garment exporting countries in the world with market share growth in countries. In which, the US market increased from 17.6% to 18.3%, leading the US market share and equal to China. In particular, export turnover in August reached 4.66 billion USD, up 14.6% over the same period, but up 8.3% compared to July 2024, the month with the highest export turnover ever," Mr. Truong informed.
There are still many challenges.
Currently, the macroeconomic situation and the inventory of fashion brands are showing positive signs about orders for the last 3 months of the year. This is considered to ensure a necessary condition for businesses to maintain operations, retain customers, market share, markets and labor, and welcome opportunities for development again. From a financial perspective, it is necessary to recognize that efficiency has not improved because in the 3 quarters of 2024, although orders are abundant and production is better organized, the price of each order has not improved, and some product codes are even lower than in 2023. According to Ms. Nguyen Thi Tuyet Mai, Deputy General Secretary of the Vietnam Textile and Apparel Association, the production activities of the textile and garment industry are showing signs of recovery and improvement when most major markets such as the US and Europe are controlling inflation, causing purchasing power to increase and inventory levels of brands to decrease. Although textile and garment orders have recovered, according to Ms. Mai, the entire textile and garment industry also faces many challenges when processing unit prices are still very low; orders are small but delivery time requirements are shortened. In addition, most export markets are currently tightly controlling the supply chain from labor sources to environmental impact. Another prominent challenge is the digital transformation process, towards smart manufacturing. “This is an inevitable trend, so textile and garment enterprises are forced to change to adapt by gradually switching to automated production and smart production. This helps increase labor productivity, increase product quality, optimize operating costs, thereby increasing competitive advantages for enterprises,” Ms. Mai noted.
Some textile and garment enterprises face labor shortage problems.
Information from many textile and garment enterprises also shows that since the beginning of the year, the biggest and most common difficulty for enterprises is the problem of labor shortage, because in 2023, many textile and garment enterprises tend to narrow production, a number of workers have moved out of the textile and garment industry. When orders for 2024 return, enterprises will face great difficulties in finding and recruiting workers, even though income has increased by 15% compared to 2022. Especially in the fiber, weaving and dyeing industries, which have to work 3 shifts, the labor source is really a difficult problem to solve. Therefore, enterprises in the industry need to continue to take drastic actions, improve production capacity, and practice thrift to ensure stable production and business operations, especially for raw material production enterprises that have been facing difficulties for the past 30 months.
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