Prioritizing Vietnamese enterprises to increase textile and garment orders

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, Chairman of the Board of Directors of Viet Tien Garment Joint Stock Corporation

The orders of enterprises including textiles is very positive, why is this?

In 2021, the textile and garment industry is expected to have positive export turnover and can complete the export plan of US$39 billion as set out.

Currently, through the first six months of 2021, export turnover is forecasted to reach US$16 billion. Although this result has not been as expected, it is also a great effort of enterprises in the whole industry in the context of the Covid-19 pandemic. The good news is that many enterprises in the textile industry have orders until the end of the third quarter of 2021, even the end of the year, the number of orders is relatively large, exceeding the production capacity of many Vietnamese enterprises.

The reason is that many countries and large markets of the textile and garment industry have controlled the pandemic, implemented a vaccine strategy for people on a large scale, so increasing consumption capacity, increasing demand requires big supply.

Vietnam has been participating in many Free Trade Agreements (FTAs), which include great tax incentives and make it more convenient in import and export; some countries that compete for export markets with Vietnam are affected not only by the pandemic but also by political instability. Therefore, thanks to good pandemic control, political and macroeconomic stability, international partners have prioritized Vietnam to place orders and cooperate.

Besides objective reasons, Vietnamese enterprises have also adapted to new business conditions through solutions to diversify product lines and markets.

Many Vietnamese enterprises have strategies to develop technology, invest in digital management equipment. This is the core reason for buyers to return to Vietnam. Due to the impact of the pandemic, direct trade is limited, buyers can't go to the export countries but still evaluate enterprises through the network, through cameras or through other ways which enterprises invest in science and technology.

As a result, many foreign companies and partners, including many famous brands, also highly appreciate the reputation of Vietnamese enterprises due to the stable quality of goods, ensuring on delivery time as promised.

In 2021, the textile and garment industry can complete the export plan of US$39 billion. Photo: collected

What do you think about the difficulties that will affect enterprises in the second half of 2021?

Currently, the Covid-19 pandemic in the country and the world is still complicated. In our country, many localities have implemented social distancing, or blocked some factories and industrial parks. This affects the movement and transportation of goods among localities and factories. In addition, the stability of the labour force is also affected, especially when the textile and garment industry need a very large workforce, which can affect the production lines of factories, thereby affecting labour productivity and delivery schedule.

In particular, the supply of raw materials also faced many difficulties due to high prices and more difficult trade. Although domestic resources have been better prepared since 2020, especially in the yarn, textile and dyeing industry, it still may not be able to respond in time. Currently, brands and importers require Vietnam to have a domestic supply or within the bloc of countries with FTA commitments to enjoy incentives. Therefore, the authorities need to promote domestic and foreign enterprises to invest in the supply chain of Vietnamese raw materials.

Facing these difficulties, which recommendations for enterprises make production and business more convenient?

In order to realize the export target of the whole of 2021, enterprises need the State to quickly and effectively implement the vaccination strategy for the whole society.

If not vaccinated, it will affect the psychology of workers and enterprises. Therefore, the Vietnam Textile and Apparel Association has proposed that the Government and the Ministry of Health urgently vaccinate the workforce in industrial parks and factories so as not to affect production activities and delivery progress of enterprises.

The prevention of the pandemic in localities needs to have a strategy and focus on industrial parks, it is necessary to better control the disease so that there are no outbreaks in industrial parks and factories.

Localities should develop solutions to help enterprises manage and operate factories on the basis of a stable strategic foundation, but needs consensus among localities. Should not set up solutions which affects enterprises. Domestic enterprises should continue to closely follow the changes of the market, adjust production in time, and strengthen the search for new orders.

Thank you, Sir!