Since the end of 2023, the recovery of the international consumer market has been a favorable condition for enterprises in the garment and footwear industry to restore production and employment for workers. Many enterprises have had to continuously recruit new workers to meet the progress of signed orders. The garment and footwear business community is also making new efforts to meet the increasingly strict production standards of the market, aiming to optimize business profits.
Tien Son Group Corporation is one of the first units in the province to produce orders under the FOB method.
Orders increase, jobs guaranteed
Thieu Do Garment Company Limited is headquartered in Thieu Hoa town (Thieu Hoa) with a total factory area of 3.8 hectares. The company currently has 10 shirt sewing lines and 6 vest sewing lines producing goods for export to Japan, the US and European countries. According to the representative of this company, in anticipation of the market's recovery needs, in 2023 the company focused on capital to expand the factory and invest in more modern machinery. Since the beginning of the year, the company has produced nearly 1.4 million shirts and 240 suits, with revenue reaching 4.3 million USD. Orders in the coming time have also been signed to ensure work until May 2025. The company is currently creating stable jobs for 1,100 workers, with an average income of nearly 8 million VND/month.
According to statistics from the Department of Industry and Trade, the province currently has nearly 300 enterprises operating in the textile and garment sector, creating jobs for about 150,000 workers. Along with that, in the leather footwear sector, there are 27 enterprises creating jobs for about 133,000 people.
Although from the second half of 2022 until now, the main consumer markets of Thanh Hoa's garment and footwear industry, the United States and EU countries, have declined sharply, enterprises have proactively approached a number of new markets such as Asia, especially Southeast Asia... At the same time, diversifying products; accepting low-priced orders to maintain jobs for workers. From flexible solutions, positive results have been achieved for these industries in 2024.
Typically, at Garment 888 Company Limited (Quang Xuong), since the end of 2022, when the US and EU markets have seen a decline in consumption output, along with accepting more small orders and discounted orders, the company has developed further and succeeded in conquering 8 more customers in Asia, bringing in a 20% increase in output compared to 2023.
According to data from the General Statistics Office, in the first 7 months of 2024, in the garment sector, enterprises produced 391.7 million products, an increase of 13.5% over the same period. In particular, towards the end of the year, production output grew higher and more stable than in the first months of the year. In the leather footwear sector, production output in the first 7 months also reached 153.6 million pairs, an increase of 16.7% over the same period.
Change to survive
In addition to positive signs in the number of orders, the Thanh Hoa garment and footwear industry still faces many challenges, such as the current order price has not recovered compared to before the recession in 2022, while input costs have increased, affecting the profits of enterprises. Along with that, recently, major importing countries have continuously put forward new requirements for importing products that meet the criteria of green production, circularity, ensuring social and environmental responsibility of enterprises. These are new challenges and will be continuously updated according to the trend that enterprises must make efforts to research and invest to adapt.
According to Trinh Xuan Lam, Chairman of the Thanh Hoa Textile and Garment Association, although it is the "garment and footwear center" of the North Central region, the Thanh Hoa garment industry only meets the criteria for job creation. Production profits for enterprises are not high because they mainly produce according to the CMT method (processing), depending on the importing unit from design samples to raw materials and transportation methods. In the association, there are currently a number of enterprises taking the lead in converting garment production to FOB production (purchasing raw materials, selling finished products) or a few have "tested" production according to higher standards such as ODM (self-design, manufacture and sell products), such as: Tien Son Group Corporation, Hue Anh Garment Company Limited... with profits from these orders increasing 3 times compared to processing production.
Gradually moving towards meeting the criteria of green, circular, sustainable and environmentally friendly production, according to the requirements of import partners, some enterprises have proactively equipped their factories with standards from equipment and facilities to save fuel and protect the environment.
Le Van Bac, CEO of May 888 Company Limited, said: “Some demanding customers from Japan always have high requirements for green, clean, and safe production for workers. Therefore, from the factory premises to the lighting system, the company always focuses on arranging air safety standards. Along with that, the company also invests in an input energy saving system in production. In addition to applying solar energy, we also research fabric boiler solutions to regenerate energy, serving other production and business activities.”
With the determination to strive to achieve the growth target of 10-15% in 2024, enterprises are continuing to increase interaction, exchange management, technical and technological experiences to cooperate on orders suitable to the production capacity of factories; invest in machinery, technology, and improve labor productivity. In the long term, Chairman of the Textile and Apparel Association Trinh Xuan Lam shared: We are encouraging enterprises to research and overcome challenges from raw materials to capital, management skills, and human resources to access increasingly higher production levels and production standards. Accordingly, in the immediate future, enterprises need to quickly participate in domestic and intra-bloc supply chains of raw materials and accessories of countries participating in new-generation free trade agreements to enjoy tax incentives. At the same time, quickly shift from export processing method to FOB production or higher to ODM, even boldly do OBM (brand building to design creation, finding input materials, product processing and delivering products to consumers) suitable to the scale and capacity of each enterprise".
Article and photos: Minh Hang
Source: https://baothanhhoa.vn/khoi-sac-nganh-may-mac-giay-da-222972.htm
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