Flexible in the face of market fluctuations

Faced with not very positive developments in the market, domestic textile and garment enterprises have tried their best to stabilize production, maintain jobs and income for workers.

Mr. Than Duc Viet - General Director of Garment 10 Corporation (May 10) shared that Garment 10's strength is shirts, but in 2023, this item will suffer the most damage. May 10 has to make orders for pants, polo shirts, and T-shirts at the shirt factory. Shirts used to account for 60% of the business, but now only account for 39%.

The "work from home" trend along with exchange rate, inflation, geopolitics, and war factors have and will continue to affect May 10's customers. This puts businesses in a situation where they have to redefine their products. strong qualities. Garment 10 currently requires each factory to make 3 items well.

Textile and garment enterprises continue to cope with small and difficult orders

Mr. Pham Phu Cuong - Chairman of the Board of Directors of Nha Be Garment Corporation Joint Stock Company (Nha Be Garment) stated that businesses have never had difficulties like today, the market has dropped deeply, orders are small, prices have decreased... To cope with the situation. According to the market situation, Nha Be Garment's suits have been transferred to local factories for production, while in the city. Ho Chi Minh produces Lacoste products without seams and hunting fashion with processing unit prices that can be up to 30-50 USD/product.

Nha Be Garment is ready to "attack" difficult items, not accepting orders exceeding 15% of production capacity... based on area, geography, and worker skills to put the product line into production. Therefore, at the beginning of 2023, Nha Be Garment produced 8 product lines and is currently implementing 10 product lines.

Increase productivity, focus on product quality

In the fourth quarter of 2023, the world textile market is assessed to have positive changes. In particular, the US and Chinese markets recovered well, the purchasing management index was both above 50 points (higher than forecast); Inflation in the EU in September 2023 decreased by 4.3%.

Regarding Vietnam's textile and garment exports , export turnover in September 2023 to the US and Chinese markets increased by 2% and 11% respectively over the same period; The household towel industry continues to maintain its advantage in raw material prices and output markets; The garment industry shows signs of customers increasing exchanges and orders...

However, the problems facing textile and garment enterprises are market work, labor productivity and heavy competition from rival countries.

Mr. Tran Huu Phong - Chairman of the Board of Directors of Vinatex Phu Hung Joint Stock Company said that units need to redefine the market more clearly and be determined with the set goals. For businesses with a market, it is necessary to improve quality to affirm the position of the business.

Mr. Nguyen Van Phong - General Director of Hue Textile and Garment Joint Stock Company commented that 2024 will be a year of great price competition. Prices will also not be better than the average price in the last 6 months of 2023.

Customers will require fast and very fast delivery, small orders, high product complexity, diverse designs, and very strict quality requirements. Customers are very interested in product quality and choose businesses to sign long-term cooperation. Therefore, businesses need to pay attention to labor productivity and invest in automation equipment more, deeper, and more promptly. At the same time, businesses are also interested in how to manage and improve worker skills.

Sharing the same opinion, Mr. Nguyen Xuan Duong - Chairman of the Board of Directors of Hung Yen Garment Corporation - Joint Stock Company (Hung Yen Garment) said that the current world market situation is very difficult, the prices of oil, fuel, and food are stable. increase reduces consumer demand, including textiles and garments.

In 2024, the unit price of processed goods is unlikely to increase, and may even decrease. Therefore, Hung Yen Garment began to orient and research to continue improving productivity, accepting both high quality orders and processing and labor protection orders. Faced with the current difficult situation, businesses need to invest in high automation, improve workers' capabilities, and reduce some capital management costs...

Representing fiber industry enterprises, Ms. Tran Thi Kim Chi - General Director of Phu Bai Fiber Joint Stock Company said that in the coming time, we must calculate carefully, need to continue to produce high quality, good yarn, and reduce costs. fees, customer selection. In particular, Phu Bai closely follows the market, realizing that any product is in demand and will increase production. With such a viewpoint, Phu Bai in 2024 is not too subjective but also not pessimistic in the face of the current unpredictable fluctuations.

Facing difficulties and challenges for the remaining months of 2023 and 2024, leaders of Vietnam Textile and Garment Group commented that, in the current uncertain trend, businesses should diversify markets and be careful in product diversification because it is also related to equipment investment. When researching the market, it is necessary to determine the short and medium term to adjust orders.

With a large gap in labor productivity between garment enterprises, leaders of Vietnam Textile and Garment Group believe that it needs to be narrowed soon to improve competitiveness in the market. At the same time, it is necessary to accelerate and strengthen solutions such as digitalization, scientific production organization, market search... Only then, in 2024, will businesses be able to partly overcome difficulties.