Textile and garment exports aim for 48 billion USD target

In 2024, the export turnover of Vietnam's textile and garment industry will reach 44 billion USD, an increase of 11.26% compared to 2023. This is an impressive figure, because last year the textile and garment industry faced many difficulties and challenges due to complicated market developments. Following the achievements, the textile and garment industry boldly set an export target of 47-48 billion USD in 2025.

Production and packaging line for export shirts at Ha Quang Garment Factory, Dong Hoi Northwest Industrial Park, Quang Binh Province. (Photo: THANH TRUC)

To achieve the above figures, textile and garment enterprises need to solve the problem of small quantity orders, fast delivery time, low unit price, etc. In addition to improving skills and increasing productivity, units need to have policies to attract and retain workers to ensure resources for production and promote growth.

Maintain growth

General Director of May 10 Corporation Than Duc Viet said that thanks to the application of many flexible solutions, the unit has overcome difficulties, maintained stable growth, and ensured jobs for workers. In 2024, May 10's total revenue reached nearly 4,700 billion VND, an increase of 10%; profit reached more than 131 billion VND, an increase of 7% compared to 2023; average income of workers reached more than 10 million VND/person/month. In 2025, the unit set a revenue target of 5,055 billion VND, average income of 10.5 million VND/person/month. To complete the set goals, the company will focus on synchronously implementing solutions such as searching and expanding markets and customers, boosting production, increasing exports, etc.

According to Mr. Viet, in recent years, May 10 has always been a pioneer in digital transformation and green transformation. The unit has applied software in management and equipped many modern devices from countries around the world to increase high automation and improve labor productivity. For green transformation, the enterprise has deployed around three main pillars, which are factories, facilities, green environment (applying LEED standards and conducting energy audits); using green energy and green materials. In particular, digital transformation and green transformation alone are expected to help the unit reduce about 15-20,000 tons of carbon emissions into the environment by 2025. In addition, the unit also increased the proportion of raw materials from recycled fibers and organic fibers of natural origin to meet the increasing needs of customers. Besides advantages, businesses also face difficulties such as low unit price, short time, fast delivery, while customers demand more complex product quality and structure, etc.

Sharing the same view, CEO of Phong Phu Joint Stock Corporation Truong Thi Ngoc Phuong said that although the market still has many difficulties, especially in the fiber industry, the efforts of the collective of employees have helped the unit reach the finish line with a total revenue of VND 2,550 billion, an increase of 20.7%; pre-tax profit reached VND 352 billion, an increase of 10.1% compared to 2023. In 2025, the company plans to have a total revenue of VND 2,600 billion, a profit of VND 355 billion. To complete the plan, the enterprise will increase investment in automation, research and development of new products, reduce costs, ... to promote growth and increase exports of goods.

Similarly, Deputy General Director of Hoa Tho Textile and Garment Joint Stock Corporation, Hoang Thuy Oanh, said that the total revenue of the enterprise in 2024 will reach VND 4,950 billion, an increase of 10% compared to 2023; profit will reach VND 336 billion, an increase of 53% compared to the annual plan, being one of the units with the highest profit/capital ratio in the Vietnam Textile and Garment Group (Vinatex). In the coming time, the enterprise will continue to invest in modern equipment, train and improve the skills of workers, promote research and market development.

According to Vinatex General Director Cao Huu Hieu, in 2024, the Group has promoted many solutions to maintain and promote production and business activities. In particular, the garment industry maintained its growth momentum with improved production and business efficiency from the third quarter of 2024, with no unit suffering losses during the year. The yarn industry has reduced losses by 90% compared to 2023, but still faces prolonged difficulties, leading to ineffective production and business. The Group's total consolidated revenue in 2024 reached VND 18,100 billion, equivalent to 102.8%; consolidated profit before tax reached VND 740 billion, equivalent to 137.5%; Average income reached 10.1 million VND/person/month, equal to 106.9% compared to 2023. Positive signals from the market, especially the shift of orders from other countries to Vietnam, will create conditions for businesses to boost production and export of goods. On that basis, Vinatex aims to increase revenue by 6% and profit by 10% compared to 2024.

Proactive synchronous solutions

Mr. Hieu commented that in order to take advantage of opportunities and promote growth, in the coming time, the fiber industry needs to continue to expand its scope of operations and cooperate in the fiber production department, especially in market work and raw material purchasing. At the same time, in-depth market research (China, India, Bangladesh) and raw material markets are needed to forecast, search for and organize access at the group level to large supply chains; bring the Vinatex fiber system deeper into global supply chains and value chains, etc. The garment industry must be quick to respond to market needs, focus on connecting with businesses in the system to increase competitiveness, and connect the garment industry with textile and dyeing units on the basis that the garment industry is the driving force, the direction of production and investment for both fibers and textiles, thereby creating momentum for sustainable growth and soon completing the set goals.

One of the difficulties facing businesses in recent times is the shortage of labor, which affects production and business activities. If this bottleneck is not resolved soon, the textile and garment industry's export target of 48 billion USD will certainly be significantly affected.

Chairman of the Board of Directors of Hung Yen Garment Corporation Nguyen Xuan Duong said that the average productivity of the unit increased by 12%, the income of workers increased compared to 2023 but the number of workers decreased by 8%. Although revenue and profit growth were still maintained, retaining workers required businesses to make efforts to ensure that workers' income increased by an average of about 8%/year to be able to feel secure in production.

“With increasingly fierce competition in the labor market, the garment industry will no longer be attractive, and at the same time, some countries in the region are experiencing labor shortages, so the pressure on garment enterprises is even greater. In the long term, enterprises and localities need to make efforts to create stable housing and jobs to attract workers from other places to work. Next comes capital, technological innovation, increased productivity and income to retain workers,” Mr. Nguyen Xuan Duong affirmed.

Sharing the same view, Mr. Than Duc Viet suggested that the State should have a human resource planning according to the national economic development strategy, in which it should plan the labor resources for the industries clearly. If there is no planning soon, the labor shortage will continue to recur, even to the point where there is no production labor, forcing the import of labor.

Chairman of the Vietnam Textile and Apparel Association (Vitas) Vu Duc Giang said that the textile and garment industry currently has many advantages when 17 out of 19 new-generation free trade agreements have come into effect. Not only that, the Vietnamese textile and garment industry has also quickly adopted the strategy of diversifying markets, diversifying customer partners and diversifying products with high added value. In addition, the industry has also absorbed automation technology, digital management, and adapted well to the requirements of sustainable green standards from many export markets. Therefore, the export target of 47-48 billion USD is completely within the industry's capacity, especially in the context of shifting orders to Vietnam, the number of orders from businesses is abundant and increasing.

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