After the 2022 Spring Festival holiday, Vietnamese textile companies quickly resumed work, and export orders increased significantly; many textile companies’ orders have even been scheduled until the third quarter of this year.
Garment 10 Joint Stock Company is one of the textile and apparel companies that started production on February 7 after the Lunar New Year in 2022.
Than Duc Viet, general manager of Garment 10 Co., Ltd., said that after the Spring Festival, the resumption rate of employees has reached more than 90%, and the factory resumption rate has even reached 100%. Different from the past situation, the textile and apparel industry usually has fewer job vacancies after the Spring Festival, but this year’s Garment 10 order volume has increased by about 15% compared with the same period in 2021.
Than Duc Viet pointed out that orders signed on May 10 last year have been scheduled to the end of the second quarter of 2022. Even for key products such as vests and shirts, after 15 months of idling, orders are currently scheduled until the end of the third quarter of 2022.
The same situation also occurs in the Z76 Company of the General Administration of Defense Industry of the Ministry of National Defense of Vietnam. Pham Anh Tuan, director of the company, said that the company has started production since the fifth day of the Lunar New Year. 100% of employees have returned to work. So far, the company has received orders until the third quarter of 2022.
The same is true for Huong Sen Group Co., Ltd., and its deputy general manager Do Van Ve shared the positive phenomenon of textile and apparel exports in 2022: We have since February 6, 2022 Production has started, and the resumption rate is 100%; the company strictly abides by epidemic prevention measures, and employees work in three shifts. Since the beginning of the year, the company has exported 5 containers of products to South Korea, China and other countries.
LeTien Truong, chairman of Vietnam National Textile and Apparel Group (VINATEX), said that VINATEX has set an overall growth target of more than 8% in 2022, of which the added value rate and profit margin must reach 20-25%.
VINATEX’s comprehensive profit reached a record high of VND 1.446 billion for the first time in 2021, which was 2.5 times that of 2020 and 1.9 times that of 2019 (before the new crown epidemic). times.
Towards sustainable development in 2022, VINATEX is determined to promote digital transformation solutions and continue to gather sufficient supply for the knitting industry. In addition, yarn-textile-garment is connected to increase added value, achieve a flexible business model, consolidate production capacity, continuously update modern models, deepen investment, drive automation to save manpower, and invest in green and clean production.
Since VINATEX and textile and apparel companies attach great importance to stabilizing the overall economy, and appropriate interest rates and exchange rates can promote exports, Le Tien Truong suggested proposing an economic revitalization plan as soon as possible. Includes: interest rate policy to facilitate rapid recovery of businesses.
In addition, logistics costs will continue to be reduced. Logistics costs currently account for 9.3% of the cost of textile products. Le Tien Truong also said: Since the production of textiles and clothing is seasonal and not evenly distributed every month, the number of overtime hours per month must be adjusted flexibly.
Regarding the overall export situation of the textile and apparel industry, the Vietnam Textile and Apparel Association (VITAS) predicts that the situation will be optimistic this year because major markets such as the United States and the European Union have reopened.
VITAS sets the target for 2022 based on 3 scenarios: The first scenario is the most optimistic, assuming that the epidemic is under control in the first quarter of 2022. In this case , aiming to boost exports to US$42.5-43.5 billion; the second scenario is more neutral, assuming that the epidemic is controlled by the middle of the year, and the total exports are expected to reach US$40-41 billion; in the third and worst case scenario, the epidemic It will continue to burn until the end of 2022, with total exports reaching 38-39 billion US dollars.
